Non-profit orgs urged to file MDF on or before Feb 28
The Securities and Exchange Commission is calling on all registered non-stock corporations to submit their Mandatory Disclosure Forms (MDF) on or before Feb. 28.
The submission of the MDF aims to establish a classification system on the nature of activities and purpose of non-stock corporations and to identify the composition of the Non-Profit Organization (NPO) sector.
This is required under Memorandum Circular No. 25, s. 2019 or the 2019 Guidelines for the protection of SEC-registered non-profit organizations from money laundering and terrorist financing abuse.
To promote transparency and maintain public trust, NPOs are encouraged to make publicly accessible online, accurate, current, and complete information regarding their status, finances, expenses, projects, those who control or direct such activities, composition of their governing boards, and their beneficial owners among other material information.
The SEC took measures to ensure that NPOs are not misused by terrorist organizations to pose as legitimate entities, to exploit legitimate entities as conduits for terrorist financing, or to conceal or obscure the clandestine diversion of funds intended for legitimate purposes, but diverted for terrorist purposes.
In accordance with the Commission’s mandate under the Revised Corporation Code (RCC), the SEC initiated reporting mechanisms to ensure that corporate entities subject to its supervision and registration are not organized or used for purposes which are contrary to law, and pursuant to the Anti-Money Laundering Act.
Corporations which have already submitted their MDF on July 31, 2019 do not need to submit a new one, but they may be required to submit additional information.
The MDF may be submitted at www.sec.gov.ph/wp-content/ uploads/2020/02/ 2020Notice_MDF. pdf and at the SEC Baguio Extension Office located at the 3rd floor of Newtown Square, Navy Base Road or at any SEC extension and satellite office nationwide. – Helen Veryan C. Valdez