Executive Summary:
1. Securities and Exchange Commission (SEC) had issued an extension of deadline to file mandatory declaration of beneficial ownership until July 31, 2021.
2. The Department of Labor and Employment (DOLE) encourages companies to apply and secure Safety Seal Certification, which will show compliant to public health standards.
3. The Supreme Court (SC) approves Rule of Procedure in bank inquiries related to Anti-Money Laundering Offenses.
Extension of Filing Mandatory Declaration of Beneficial Ownership
The SEC had been monitoring the opening of companies by dummy or representative who has no real investment in the business. The SEC had noticed that some business owners had been using other people in SEC documents like General Information Sheet (GIS) and Articles of Incorporation to hide their identity and escape when liability arises.
To promote transparency in business, the SEC has made mandatory the declaration of beneficial ownership in a company. The beneficial ownership refers to person or people that has real and true ownership in the company other than those stated in the General Information Sheet. Companies are mandated to name the real person that benefits/ loss in the company. Although submission of Trust Agreement of Share of Stock is not required, the ownership must be declared through BOTD Form and Consent Agreement Form.
The companies with updated General Information Sheet (GIS) that had completed the beneficial ownership page are no longer required to submit.
Safety Seal Certification for Companies
The DOLE encourages private establishments to apply for safety certification to confirm compliance with minimum public health standards set by the government. The businesses with safety seal will assure the public that they are practicing health protocols, such as social distancing and the use of a contact-tracing application, particularly the StaySafe.PH application, among others.
The industry which may apply for Safety Seal are the following:
a.) Manufacturing
b.) Tourism Enterprises
c.) Construction Sites
d.) Utilities
e.) Information and Communication companies
f.) Warehouse
g.) Groceries, Supermarkets, Shopping Clubs
h.) Barbershop and Salons
i.) Service and Repair Shops
j.) Malls
k.) Wet Markets
l.) Restaurants outside hotels/ resorts
m.) Banks, money changers, pawnshops, remittance centers
n.) Laundry Service Centers
o.) Sports Centers
p.) Tutorial, testing, and Review Centers
q.) Gyms
r.) Spas
s.) Fast foods eateries and coffee shop
The Certification Procedure is performed by submission of application and form and subsequent visit/ inspection.
The application may be filed at the Department of Labor and Employment (DOLE), Department of Tourism (DoT, Department of Trade and Industry (DTI), and Local Government Unit (LGU).
Bank Inquiries in Anti-Money Laundering Offenses
The Supreme Court of the Philippines has approved Rules of Procedure in Case of Bank Inquiry Into or Examination of Deposit and Investment Accounts Relating to an Unlawful Activity or a Money Laundering Offense Under Republic Act No. 9160, as amended.
The Rule took effect on May 31, 2021 and would apply to ex-parte applications for authority to inquire into, or examine, deposit or investment accounts with any banking institution or non-bank financial institution and their subsidiaries and affiliates, representing, involving, or relating to an "unlawful activity" or a "money laundering offense."
In the new rule, the Office of the Solicitor General, even without filing a formal charge, may apply with the Court of Appeals an authority to look into bank accounts. The Office of the Solicitor General may file an application without the knowledge of the (suspected) offender. The inquiry, however, must be detailed to include (1) account number and address of the owner (2) ground relied upon for the grant of the authority (3) supporting evidence that the subject deposit are in any way related to an unlawful activity or a money laundering offense.
The bank inquiry shall be valid for a period of 120 calendar days from the date of receipt by the AMLC, and shall have the same effect as that of a freeze order in the Internal Rules of the Court of Appeals. The court may, upon motion, may be extended for a period not exceeding 120 calendar days.
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