The Securities and Exchange Commission (SEC) has ordered the non-stock corporations to submit their mandatory disclosure forms not later than February 28 to protect them from money laundering, an official from its Bacolod extension office said yesterday.
Clyde Linaja-Padilla, SEC Bacolod information officer, said the local extension office will cater to the non-stock corporations should they submit the MDFs there.
She added that MDFs may also be submitted directly to the Anti-Money Laundering Division of the Enforcement and Investor Protection Department at the SEC main office.
She said submission of MDF is required for establishing a classification system on the nature of activities and purpose of non-stock corporations, identifying the compositions of the non-profit organizations subject to the jurisdiction and supervision of the commission, and implementing a risk-based approach of supervision.
“This will also enable the commission to clean-up its database by revoking the Certificate of Registration of inactive or defunct non-stock corporations,” she added.
She said that non-profit organizations are vulnerable to the threat of terrorist financing and money laundering because of the nature of their activities which involves raising and disbursing, and cross border movement of funds.
She said the commission en banc recently issued guidelines for the protection of SEC-registered non-profit organizations from money laundering and terrorist financing abuse through a memorandum circular.
The guidelines are intended to address gaps in the regulatory framework that are most likely to be exploited, she said.
Among the measures to address these gaps is the submission of MDFs on February 28, she added.*
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