Manila: In a bid to improve the accuracy and timeliness of corporate beneficial ownership (BO) disclosures, the Securities and Exchange Commission (SEC) issued a revised regulatory framework aimed at preventing illicit activities.
According to Philippines News Agency, SEC, in a press release Tuesday, said it issued Memorandum Circular No. 15, Series of 2025 on Dec. 22 that paves the way for the issuance of revised rules under the Beneficial Ownership (BO) Disclosure Rules of 2026, which will take effect on Jan. 1, 2026.
The revised rules provide for a verification mechanism to validate BO information and address discrepancies, controlled access by authorized parties, subject to applicable laws and safeguards; and a 20 percent reporting threshold as set by the Anti-Money Laundering Council (AMLC).
It classifies BO into ‘Categories A to I, based on ownership interests and various forms of control or influence over a corporation’, with Category A covering natural persons who own at least 20 percent of the vot
ing rights, voting shares, or capital of the reporting corporation.
SEC said ‘the other categories classify beneficial owners based on their exercise of control over the reporting entity, the ability to elect a majority of the board of directors/trustees, and if they exert dominant influence in conducting the affairs of the corporation, among others.’
‘Strengthening transparency in beneficial ownership is a key regulatory reform to reduce the risk of corporate entities being misused for illicit activities,’ SEC Chairperson Francis Lim said.
‘The 2026 rules streamline existing disclosure processes and allow the Commission to make better use of structured, high-quality data, ensuring that authorized authorities can access reliable and timely information for lawful purposes,’ he added.
