The Securities and Exchange Commission (SEC) is cracking the whip on corporations which are not complying with the submission of the general information sheet (GIS), particularly the declaration of their beneficial owners.
The SEC has issued amendments to the 2019 Revision of the GIS, which increased the penalties and imposed additional non-financial penalties.
According to the SEC, a significant number of corporations have yet to declare their beneficial owners.
“There is a need to increase the penalties imposed and include additional non-financial sanctions in MC No. 15, S. 2019 to make them proportional, effective and dissuasive for non-compliance, in line with the recommendations of the Financial Action Task Force and other international standard setting bodies,” the SEC said.
The amended penalties for stock corporations with retained earnings of less than P500,000 range from P50,000 for the first violation up P500,000 for the fourth and subsequent violations.
Non-stock corporations with fund balance of less than P500,000, on the other hand, will have penalties ranging from P25,000 for the first violation up to P250,000 for the fourth and subsequent violations.
For non-stock corporations with fund balance of P500,000 or more but less than P5 million, the penalties shall be twice the amount of the penalties imposed for those with retained earnings or fund balance of less than P500,000.
As for stock corporations with retained earnings or non-stock corporations with fund balance of P5 million or more but less
than P10 million, the penalties will be thrice the amount imposed for those with retained earnings or fund balance of less than P500,000.
Meanwhile, stock corporations with retained earnings or non-stock corporations with fund balance of Php10 million or more, the penalties will be four times the penalties imposed for those with retained earnings or fund balance of less than P500,000.
SEC said the reporting corporation will also be imposed an additional fine of P1,000 for each day of delay in the submission of beneficial ownership information as a continuing violation, but the additional fine for the continuing violation shall in no case exceed P2 million.
