Regulatory Alerts2019-12-27
2019 Guidelines for the Protection of SEC Registered Non-Profit Organizations from Money Laundering and Terrorist Financing Abuse
The Securities and Exchange Commission of the Philippines issued these guidelines to establish a regulatory framework protecting non-profit organizations from money laundering and terrorist financing abuse. The document mandates risk-based supervision, requiring NPOs at risk to implement good governance systems, internal audits, and enhanced due diligence for politically exposed persons. Additionally, all registered non-stock corporations must submit a Mandatory Disclosure Form to enable sector classification and monitoring, with non-compliance serving as grounds for revocation of their Certificate of Incorporation.
[Logo: Securities and Exchange Commission PHILIPPINES]
SEC MEMORANDUM CIRCULAR NO. 25 Series of 2019
TO: ALL SEC REGISTERED NON-STOCK CORPORATIONS
SUBJECT: 2019 GUIDELINES FOR THE PROTECTION OF SEC REGISTERED NON-PROFIT ORGANIZATIONS FROM MONEY LAUNDERING AND TERRORIST FINANCING ABUSE ("2019 NPO Guidelines")
By the authority vested in the Securities and Exchange Commission (SEC) under Republic Act No. 11232 otherwise known as the Revised Corporation Code of the Philippines (RCC) and pursuant to its mandate to assist in the implementation of the Anti-Money Laundering Act (AMLA), as amended, and the Terrorist Financing Prevention and Suppression Act (TFPSA) and their respective Implementing Rules and Regulations, the Commission En Banc in its meeting on 10 December 2019 approved the herein amendment of SEC Memorandum Circular No. 15, Series of 2018 entitled Guidelines for the Protection of SEC Registered Non-Profit Organizations from Money Laundering and Terrorist Financing Abuse ("2018 NPO Guidelines")
CHAPTER I TITLE, SCOPE, PURPOSE AND DEFINITION OF TERMS
Section 1.1. Title. These Guidelines shall be known as the "2019 Guidelines for the Protection of SEC registered Non-Profit Organizations from Money Laundering and Terrorist Financing Abuse" or the "2019 NPO Guidelines".
Section 1.2. Scope. These Guidelines shall be observed by all Non- Stock Corporations registered with the Commission unless otherwise indicated herein.
Section 1.3. Purpose. In order to establish the necessary regulatory framework for the protection of SEC registered non-profit organizations from money laundering (ML) and terrorist financing (TF) abuse in accordance with the Commission's mandate under the RCC 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 Section 2.1, Rule 7 of the 2018 IRR of the AMLA, as amended, the following Guidelines are hereby adopted.
Section 1.4. Definition of Terms. Except as otherwise defined herein, all terms used shall have the same meaning as those terms that are defined in the RCC and other related laws as well as issuances by the Commission.
1.4.1. "COEP" - refers to the "Certificate of Existence of Program/Activity," in accordance with the relevant guidelines prescribed by the Commission.
1.4.2. "Commission" - refers to the Securities and Exchange Commission.
Page 1 of 10 Published: Manila Bulletin, December 28, 2019 Manila Standard, December 28, 2019
1.4.3. "Foundation" - refers to a non-stock, non-profit corporation established for the purpose of extending grants or endowments to support its goals and/or raising funds to accomplish charitable, religious, educational, athletic, cultural, literary, scientific, social welfare or other similar objectives and registered as a Foundation with the Commission.
1.4.4. "Non-Stock Corporation" - refers to a corporation with no authorized capital stock and no part of its income is distributable as dividends to its members, trustees, or officers.
1.4.5. "Non-Profit Organization" ("NPO") - refers to an SEC registered Non-Stock Corporation that primarily engages in raising or disbursing funds for purposes such as charitable, religious, cultural, educational, social or fraternal purposes, or for the carrying out of other types of good works. For purposes of these Guidelines, NPOs shall include Foundations.
1.4.6. "NPOs at Risk" - refers to the NPOs or subset of NPOs identified as at risk of ML or TF abuse based on a risk assessment of the NPO Sector conducted by the Anti-Money Laundering Council (AMLC) and/or the SEC.
1.4.7. "Politically Exposed Person" ("PEP") - refers to an individual who is or has been entrusted with a prominent public position/function in:
a) the Philippines with substantial authority over policy, operations or the use or allocation of government-owned resources;
b) a foreign state, or
c) an international organization.
It shall be presumed that a person who has been entrusted with a prominent public position/function as referenced above shall continue to be considered a PEP, even if he or she no longer holds such a position, unless it is clearly shown otherwise.
The term "PEP" shall include immediate family members, and close relationships and associates that are reputedly known to have:
(1) joint beneficial ownership of a legal entity or legal arrangement with the main/principal PEP, or;
(2) sole beneficial ownership of a legal entity or legal arrangement that is known to exist for the benefit of the main/ principal PEP.
Immediate family members of PEPs refer to spouse or partner, children and their spouses, parents and parents-in-law, and siblings;
Close Associates of PEPs refers to persons who maintain a particularly close relationship with the PEP, and include persons who are in a position to conduct substantial domestic and international transactions on behalf of the PEP. Close Associates may include:
(1) beneficial owners of a legal entity or legal arrangement that is known to exist for the benefit of the main/ principal PEP;
(2) business partners or associates, especially those that share beneficial ownership of legal entities or legal arrangements with the PEP;
(3) persons who are otherwise connected to the PEP (e.g., through joint membership of a company board);
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(4) prominent members of the same political party, civil organization, labor or employee union as the PEP;
(5) persons (sexual and/or romantic) partners outside the family unit (e.g. girlfriends, boyfriends, mistresses, etc.).
1.4.8. "SS" - refers to the "Sworn Statement by the President and Treasurer of the Sources, Amount, and Application of Funds and Program/Activity Planned, Ongoing, and Accomplished," in accordance with the relevant guidelines and format prescribed by the Commission.
1.4.9. "UN Sanctions List" - refers to the Consolidated United Nations Security Council (UNSC) Sanctions List related to terrorism and terrorism financing of countries, persons and/or entities, including all subsequent updates and/or amendments thereto by the UNSC
CHAPTER II RISK-BASED MEASURES
Section 2.1. In order to ensure that NPOs are not misused by terrorist organizations: (i) to pose as legitimate entities; (ii) to exploit legitimate entities as conduits for terrorist financing, including for the purpose of escaping asset freezing measures; or (iii) to conceal or obscure the clandestine diversion of funds intended for legitimate purposes, but diverted for terrorist purposes, the Commission may apply focused measures it deems necessary in dealing with identified threats of ML and TF abuse to NPOs based on a risk assessment conducted by the AMLC and/or the SEC.
Section 2.2. The following measures are hereby adopted to protect NPOs from ML and TF abuse without being unduly disruptive of legitimate NPO activities, to wit:
2.2.1. Promote transparency among NPOs;
2.2.2. Adoption of good governance policies for NPOs;
2.2.3. Proportionate and risk-based supervision and monitoring; and
2.2.4. Sustained Outreach Programs;
Section 2.3. For the purpose of applying risk-based measures, the SEC, in coordination with the AMLC, shall develop and promulgate a risk rating system for all SEC registered NPOs.
Section 2.4. In the event that certain NPOs are identified as being at risk of ML or TF abuse, the Commission may adopt proportionate monitoring and supervision measures for such NPOs and require them the applicable compliance requirements under Section 6.1. of these Guidelines.
CHAPTER III PROMOTING TRANSPARENCY
Section 3.1. In order to promote transparency and maintain public trust in NPOs, NPOs are encouraged to make publicly accessible online, accurate, current and complete information regarding their status, finances, expenses, projects, activities, those who control or direct such activities, composition of their governing boards, and their beneficial owners among other material information. The transparency and trustworthiness of such NPOs may be used by the Commission as basis, among others, in including said NPOs in an accredited list or any similar listing.
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CHAPTER IV GOOD GOVERNANCE SYSTEM
Section 4.1. To promote accountability, integrity, and public confidence in the administration and management of NPOs, the Commission hereby adopts policies on good governance which shall apply to all NPOs as defined herein.
Section 4.2. The following are characteristics of a good governance system in an NPO:
4.2.1. Organizational integrity - The board of trustees maintains oversight over the organization by establishing strong financial and human resource policies, meeting on a regular basis, and actively monitoring activities.
4.2.2. Partner relationships - The board of trustees ensures that proper due diligence is carried out on individuals and organizations that (a) donate money or funds (i.e., donors), (b) receive money (i.e., beneficiaries) or (c) work closely with the NPO, through the use of selection criteria and searches of publicly available information, including domestic blacklists and UN sanctions lists. The board of trustees may execute agreements to outline the expectations and responsibilities with partners, including detailed information as to the application of funds and compliance with requirements for regular reporting, audits and on-site visits.
4.2.3. Financial accountability and transparency - The board of trustees approves an annual budget and follows a process to monitor the use of funds. The board of trustees also mandates that its NPO keep adequate and complete financial records of income, expenses, and financial transactions throughout its operations, including with respect to the use of its funds. NPOs clearly state program goals when collecting funds, and ensure that funds are applied as intended and consistent with the purpose of the organization. Information about the activities of the NPOs shall be made publicly available. NPOs are informed as to the sources of their donations and establish criteria to determine whether donations should be accepted or refused.
4.2.4. Record keeping - The board of trustees mandates its NPOs to maintain, for a period of at least five years, records of domestic and international transactions that are sufficiently detailed to verify that funds have been received and spent in a manner consistent with the purpose and objectives of the organization, and to make these available to the Commission.
4.2.5. Program planning and monitoring - The board of trustees requires its NPO to establish appropriate internal controls and monitoring systems to ensure that funds and services are being used as intended.
CHAPTER V INTERNAL AUDIT SYSTEM
Section 5.1. To strengthen adherence to good governance principles and to ensure a high standard of best practice for the NPOs at Risk and its members, they shall establish an audit committee, or appoint a responsible officer or employee, whose responsibility is to perform the audit functions as described below. If an audit committee is established, it shall consist of at least three (3) trustees who shall preferably have accounting and/or finance backgrounds and/or with audit experience. Similarly, the appointed officer or employee to perform such audit function shall preferably have the same qualifications.
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Section 5.2. The functions of the audit committee or the officer or employee appointed to perform the audit functions include the following:
a) Assist the board of trustees in the performance of its oversight responsibility for the financial reporting process, system of internal control, audit process, and monitoring of compliance with applicable laws, rules and regulations, including but not limited to registration requirements, compliance requirements, record-keeping requirements, monitoring system controls, procedures for investigating infractions, and sanctions for violations;
b) Provide oversight over management's activities in managing credit, liquidity, operational, legal and other risks of the NPO, whereby it shall regularly endeavor to receive information on risk exposures and risk management activities;
c) Perform oversight functions over the NPO's internal auditors and effectively coordinate with its external auditors and ensure that the internal and external auditors act independently from each other, whereby both auditors are given unrestricted access to all records, properties and personnel to enable them to perform their respective audit functions;
d) Review the annual internal audit plan to ensure its conformity with the purpose of the NPO, whereby such plan shall include the budget necessary to implement it;
e) Discuss with the external auditor the nature, scope and expenses of the audit, prior to commencement of the audit;
f) Monitor and evaluate the adequacy and effectiveness of the NPO's internal control system, including financial reporting control and information technology security;
g) Review the reports submitted by the internal auditors, including the audited financial statements of the NPO that should have been written and reviewed by an external auditor accredited by the Board of Accountancy;
h) Review the quarterly, half-year and annual financial statements before their submission to the board of trustees, with particular focus on compliance with accepted accounting standards, tax, legal and regulatory requirements; and
i) Coordinate, monitor and facilitate compliance with applicable laws, rules and regulations.
CHAPTER VI COMPLIANCE REQUIREMENTS
Section 6.1. NPOs at Risk shall be subject to the following requirements:
6.1.1 Existing minimum requirements based on laws, SEC rules and other requirements as may be prescribed by the Commission.
6.1.2 Annual Financial Statements audited by an independent Certified Public Accountant accredited by the Board of Accountancy.
6.1.3 Conduct of mandatory background checks of the officers and trustees.
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6.1.4 Mandatory audit by the Commission of the NPO concerned.
6.1.5 Establishment of an internal audit system.
6.1.6 Attendance in sustained outreach program of the Commission.
Section 6.2. The Commission may require the submission of such other document/s as it may determine, in its discretion, to be necessary to properly identify the composition of the NPO Sector which is subject to its jurisdiction and supervision and to assist the AMLC in the risk assessment process.
CHAPTER VII SUSTAINED OUTREACH PROGRAMS AND SEMINARS
Section 7.1. Pursuant to its regulatory and supervisory powers, the Commission will conduct, at least once a year, regular sustained outreach/consultation programs, awareness training and workshops on ML and/or TF issues, vulnerabilities, and risks as well as practical and effective mitigation measures. Such programs and seminars will include discussions regarding regulatory compliance, good governance principles, internal control system development, accountability procedures and financial controls, as well as risk management for NPOs. In connection with this, the Commission may undertake to do any or all of the following:
a) Coordinate and partner with other networks of Non-Stock Corporations, NPOs or similar umbrella organizations (e.g., Caucus of Development NGO Networks, Philippine Council for NGO Certification, donor organizations, Association of Foundations, League of Corporation Foundations, etc.) and other government agencies (e.g., local government units, Department of Social Welfare and Development, National Bureau of Investigation, Philippine National Police, universities, colleges, etc.) to implement such outreach programs and seminars;
b) Provide, through its website, public access to the materials used in these outreach programs and seminars; and
c) Consider, as part of its awareness program, to regularly upload to its website the latest information on the foregoing subject matters of such outreach programs and seminars, including information campaigns, brochures, manuals, pamphlets, articles and frequently asked questions.
Section 7.2. The trustees, officers, and/or responsible representatives of NPOs at Risk are required to attend such outreach programs and seminars. Proof of attendance therein shall be in the form of a certificate duly issued by the Commission. Such proof of attendance shall be kept by such NPOs at their principal office and must be presented to representatives of the Commission during the course of their audit/inspection.
CHAPTER VIII PREVENTIVE MEASURES
Section 8.1. NPOs at Risk shall establish and record the true and full identity of their donors/sources of funds identified as PEPs under Section 1.4.7.
In case of domestic PEPs or persons who have been entrusted with a prominent function by an international organization, such NPOs shall:
a. Take reasonable measures to determine whether the donor is a PEP; and
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b. In cases when there is a higher risk relationship, adopt measures (b) to (e) below.
In relation to foreign PEPs, such NPOs shall:
a. Put in place risk management systems to determine whether the donor is a PEP;
b. Obtain senior management approval before establishing (or continuing, for existing donors) such relationship;
c. Take reasonable measures to establish the source of wealth and the source of funds of donors identified as PEPs;
d. Conduct enhanced ongoing monitoring on that relationship; and
e. Institute reasonable measures to ensure that the NPO's funds are disbursed to the declared beneficiaries and/or used for the project/s stated in the SS and COEP.
Section 8.2. Donors from a foreign jurisdiction that is recognized as having inadequate internationally accepted Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) standards, or presents greater risk for ML or TF, shall be subject to enhanced monitoring by the NPOs at Risk.
Section 8.3. For the purpose of protecting themselves from ML and TF abuse, all NPOs at Risk shall adopt the following preventive measures:
- Maintain information on their activities and those who control or direct their activities;
- Have controls in place to ensure that funds are fully accounted for and spent in a manner consistent with the NPO's stated activities;
- Follow a "know your beneficiaries and associate NPOs" rule; and
- Report to the Commission any fact within its knowledge that gives rise to a suspicion that such NPO is being exploited for ML and/or TF purposes.
CHAPTER IX MANDATORY DISCLOSURES FOR ALL SEC REGISTERED NON-STOCK CORPORATIONS
Section 9.1. For the purpose of establishing a classification system on the nature of activities and purpose of Non-Stock Corporations and to enable the Commission to identify the composition of the NPO Sector subject to its jurisdiction and supervision, the Commission hereby directs all SEC registered Non-Stock Corporations to accomplish the revised Mandatory Disclosure Form (MDF) attached hereto as Annex "A" and submit the same to the Commission through the Anti-Money Laundering Division (AMLD) of the Enforcement and Investor Protection Department (EIPD) or the nearest SEC Extension Office within sixty (60) days from the effective date of this Circular.
Section 9.2. Corporations which have already submitted their MDF pursuant to SEC Memorandum Circular No. 15, Series of 2018 on or before 31 July 2019 shall be deemed to have complied with the requirement to submit the MDF as required herein. However, said corporations may be required by the Commission to submit the additional information sought in the revised MDF under these amended guidelines.
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Section 9.3. All non-stock corporations registered after the effectivity of this Circular shall submit the required information in the MDF, as may be applicable, within six (6) months from date of registration.
Section 9.4. For monitoring and updating purposes and in line with the objectives set forth in this Circular, the Commission may, from time to time, as it may deem necessary, require SEC registered Non-Stock Corporations to submit updates on the following, to wit:
a) Objectives and purpose of their stated activities; b) Identity of the person(s) who own, control or direct their activities, including senior officers, board members and trustees; c) Nature of operations or projects; d) Actual raising or disbursing of funds for charitable, religious, cultural, educational, social or fraternal purposes, or for the carrying out of other types of "good works;" e) Amount of donations, contributions and grants received; f) Amount of funds used by the Corporation for its projects and programs; g) Location of operations which shall include the (i) head office or branches, if any, (ii) location of beneficiaries/projects, and (iii) other areas of operation/activity, if any; h) Source of Funds (as to person); i) Source of Funds (as to geography) j) Intended beneficiaries (as to person); k) Intended beneficiaries (as to geography); and l) Existing license/accreditation from another government agency or self-regulating organization.
Section 9.5. Failure to comply with the requirements of this Chapter is a cause for revocation of the Certificate of Incorporation of the non-complying Non-Stock Corporation.
Section 9.6. Compliance with the requirements under this Chapter may be done through an online facility as may be established for the purpose subject to such rules and regulations as may promulgated by the Commission.
Section 9.7. The Information and Communications Technology Department (ICTD) of the Commission shall maintain an updated database of Non-Stock Corporations with the information required to be submitted under these Guidelines. Such database shall be made accessible to the EIPD-AMLD and the respective Operating Departments having supervision over such Non-Stock Corporations.
CHAPTER X COORDINATION AND INFORMATION SHARING
Section 10.1. Subject to the provisions of the Data Privacy Act, for the purposes enunciated in this Circular, the Commission will pursue and implement a policy of effective cooperation and coordination through, among others, information and resource sharing, with law enforcement agencies and other government agencies, such as the Philippine National Police, National Bureau of Investigation, Department of Social Welfare and Development, AMLC, Insurance Commission, Department of Justice, and Office of the Ombudsman.
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Section 10.2. The Commission may enter into agreement(s) with NPO self-regulatory organizations and other private organizations for the purpose of cooperation, coordination and information sharing subject to the provisions of existing laws, rules and regulations.
Section 10.3. The Commission shall establish an effective capacity to respond to international requests for information about an NPO of concern in accordance with existing laws and the rules and regulations of the Commission and the AMLC.
CHAPTER XI INVESTIGATION AND INFORMATION GATHERING
Section 11.1. The Commission may, in its discretion, conduct such investigation as it may deem necessary to determine whether any person has violated or is about to violate the mandatory provisions of these Guidelines or any NPO is being abused for money laundering or terrorist financing purposes in violation of its franchise. For the purpose of such investigation, the Commission, through any officer designated by it, may administer oaths and affirmations, subpoena witnesses, compel attendance, take evidence, require the production of any book, paper, correspondence, memorandum, or other record which the Commission deems relevant or material to the inquiry, and to perform such other acts necessary in the conduct of such investigation or proceedings.
CHAPTER XII ENHANCED REGISTRATION AND MONITORING SYSTEM
Section 12.1 The Commission's registration and monitoring system, as regards Non-Stock Corporations, shall be evaluated, reviewed, modified and updated in accordance with the principles, policies and procedures provided in these Guidelines.
CHAPTER XIII PENALTIES
Section 13.1. The penalties and sanctions provided for under current laws, SEC M.C. No. 8, series of 2009 entitled Scale of Fines for Non-Compliance with the Financial Reporting Requirements of the Commission, SEC M.C. No. 8, series of 2006 on the Revised Guidelines on Foundations, as amended, and other issuances of the Commission are hereby adopted and incorporated into these Guidelines, insofar as they are applicable.
Section 13.2. If, after due notice and hearing, the Commission finds that:
a) There is a willful violation of these Guidelines or related orders of the Commission; b) Any person has, in applications, accounts, records or documents required under these Guidelines to be filed with the Commission, made any untrue statement of a material fact, or omitted to state any material fact required to be stated or necessary to make the statements therein not misleading; or c) Any person has refused to permit any lawful examinations into its affairs,
the Commission may, in its discretion, and subject to existing laws and regulations, impose any or all of the following sanctions as may be appropriate in light of the facts and circumstances:
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(i) Fine of no less than Five Thousand Pesos (PhP5,000.00) nor more than Two Million Pesos (PhP2,000,000.00) plus not more than One Thousand Pesos (PhP1,000.00) for each day of continuing violation but not to exceed Two Million Pesos (PhP2,000,000.00); (ii) Suspension or Revocation of the Certificate of Incorporation; and (iii) Other penalties within the power of the Commission to impose.
In imposing the foregoing penalties, the Commission shall be guided by the principles of effectiveness, dissuasiveness and proportionality.
Section 13.3. The inclusion of a Non-Stock Corporation in the UN Sanctions List shall be a ground for revocation of its Certificate of Incorporation. The process of revocation shall be in accordance with the rules of procedure of the Commission.
Section 13.4. The NPO's Certificate of Incorporation shall also be revoked if the trustees and/or officers of said NPO had knowingly allowed it to be used or used the organization for ML or TF purposes. This is without prejudice to the dissolution and forfeiture of assets of the corporation under the conditions in Title XIV of the RCC in relation to Sec. 158 thereof.
CHAPTER XIV AMENDMENT/REPEAL
Section 14.1. All rules, regulations, orders, circulars and issuances of the Commission that are inconsistent with this memorandum circular are hereby amended and/or repealed accordingly.
CHAPTER XV SEPARABILITY
Section 15.1 If any portion or provision of this Circular is declared unconstitutional or invalid, the other portions or provisions hereof, which are not affected thereby shall continue in full force and effect.
CHAPTER XVI EFFECTIVITY
Section 16.1. This Memorandum Circular shall take effect immediately after its publication in two (2) national newspapers of general circulation and its posting in the Commission's website.
Pasay City, Philippines, 27 December 2019.
FOR THE COMMISSION:
[Signature] EMILIO B. AQUINO Chairperson
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[Logo: Securities and Exchange Commission PHILIPPINES]
MANDATORY DISCLOSURES FOR SEC REGISTERED NON-STOCK CORPORATIONS
Pursuant to its regulatory and supervisory powers under Republic Act No. 11232 otherwise known as the Revised Corporation Code of the Philippines and the Securities Regulation Code, the Commission, in its efforts to combat money laundering and terrorist financing, deems it necessary to require additional information from existing SEC Registered Non-Stock Corporations.
In this regard, the President or any other officer duly authorized under a board resolution is hereby mandated to accomplish the following form by supplying all the information required herein.
INSTRUCTIONS: Do not leave any blanks unfilled. If an item is not applicable, please note this as "N/A." Incomplete details will be deemed as failure of submission and hence a violation of Section 4.1 of these Guidelines which provides for revocation of registration of the Non-Stock Corporation.
I. Have you submitted a Mandatory Disclosure Form on or before July 31, 2019? ☐ Yes ☐ No
II. Corporate Profile
| Corporate Name | |
|---|---|
| Business/Trade Name | With "N/A" option |
| SEC Registration No. | |
| Complete Principal Office Address | |
| Complete Business Address | With "N/A" option |
| No. of Branch Office | |
| Branch Office/s Addresses | ☐ Bangsamoro Autonomous Region in Muslim Mindanao ("BARMM")<br>☐ Cordillera Administrative Region (CAR)<br>☐ National Capital Region ("NCR")<br>☐ Region I (Ilocos Region)<br>☐ Region II (Cagayan Valley)<br>☐ Region III (Central Luzon)<br>☐ Region IV-A (CALABARZON)<br>☐ Region IV-B (MIMAROPA)<br>☐ Region V (Bicol Region) |
A. Area or location of operations/activities:
| Area of Operation/Activities | |
|---|---|
| ☐ Bangsamoro Autonomous Region in Muslim Mindanao ("BARMM")<br>☐ Cordillera Administrative Region (CAR)<br>☐ National Capital Region ("NCR")<br>☐ Region I (Ilocos Region)<br>☐ Region II (Cagayan Valley)<br>☐ Region III (Central Luzon) | ☐ Region IV-A (CALABARZON)<br>☐ Region IV-B (MIMAROPA)<br>☐ Region V (Bicol Region)<br>☐ Region VI (Western Visayas)<br>☐ Region VII (Central Visayas)<br>☐ Region VIII (Eastern Visayas) |
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B. Primary Purpose as Stated in Articles of Incorporation (Check (☑) only one)
☐ Alumni Associations | ☐ Charitable ☐ Athletic | ☐ Educational ☐ Condominium Associations | ☐ Religious ☐ Cultural | ☐ Social Welfare ☐ Environmental | ☐ Scientific ☐ Fraternal | ☐ Literary | ☐ Professional | ☐ Sectoral (women's associations, senior citizens, PWD, LGBTQ+ etc.) | ☐ Transportation |
Secondary Purpose (Check (☑) all applicable)
☐ Alumni Associations | ☐ Charitable ☐ Athletic | ☐ Educational ☐ Condominium Associations | ☐ Religious ☐ Cultural | ☐ Social Welfare ☐ Environmental | ☐ Scientific ☐ Fraternal | ☐ Literary | ☐ Professional | ☐ Sectoral (women's associations, senior citizens, PWD, LGBTQ+ etc.) | ☐ Transportation |
C. Other Registration/License/Accreditation/Permit (Please check (☑) all that apply and provide details.)
| Name of Issuing Agency | Registration/License/Accreditation/Permit No. | Date of Issuance | Validity |
|---|---|---|---|
| ☐ Bureau of Internal Revenue (BIR) | |||
| ☐ Commission on Higher Education ("CHED") | |||
| ☐ Department of Agrarian Reform ("DAR") Accreditation | |||
| ☐ Department of Agriculture Agricultural Training Institute ("DA-ATI") Accreditation | |||
| ☐ Department of Education ("DepEd") Permit/Certificate | |||
| ☐ Department of Environment and Natural Resources (DENR) | |||
| ☐ Department of Health (DOH) | |||
| ☐ Department of Labor and Employment ("DOLE") | |||
| ☐ Department of Social Welfare and Development ("DSWD") certification of: Accreditation/ license/ registration/ | |||
| ☐ Local Government Units (LGUs) |
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| ☐ National Commission for Culture and the Arts (NCCA) | |||
|---|---|---|---|
| ☐ National Commission on Indigenous Peoples ("NCIP") Accreditation | |||
| ☐ National Commission on Muslim Filipinos ("NCMF") Certificate of Recognition/ Accreditation | |||
| ☐ Philippine Council for NGO Certification ("PCNC") Accreditation | |||
| ☐ Technical Education and Skills Development Authority ("TESDA") | |||
| ☐ Others (Please specify) |
D. Type of activities (Check (☑) all applicable activities):
| PARTICULARS | YES | NO | |
|---|---|---|---|
| 1. | Raising funds for charitable purposes | ☐ | ☐ |
| Raising funds for religious purposes | ☐ | ☐ | |
| Raising funds for cultural purposes | ☐ | ☐ | |
| Raising funds for educational purposes (except tuition fees) | ☐ | ☐ | |
| Raising funds for social purposes | ☐ | ☐ | |
| Raising funds for fraternal purposes | ☐ | ☐ | |
| Raising funds for other types of good works<br>If yes, please specify/indicate the type of "good works" referred to: ____________________ | ☐ | ☐ | |
| 2. | Disbursing funds for charitable purposes | ☐ | ☐ |
| Disbursing funds for religious purposes | ☐ | ☐ | |
| Disbursing funds for cultural purposes | ☐ | ☐ | |
| Disbursing funds for educational purposes | ☐ | ☐ | |
| Disbursing funds for social purposes | ☐ | ☐ | |
| Disbursing funds for fraternal purposes | ☐ | ☐ | |
| Disbursing funds for the carrying out of other types of "good works"<br>If yes, please specify/indicate the type of "good works" referred to: ____________________ | ☐ | ☐ |
E. Total amount of donations, contributions and grants received by the corporation annually for the years indicated below (inclusive of non-monetary items received):
Please check (☑) the appropriate amount:
| 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | |
|---|---|---|---|---|---|---|
| P0 to P500,000 | ☐ | ☐ | ☐ | ☐ | ☐ | ☐ |
| P500,001 to P1,000,000 | ☐ | ☐ | ☐ | ☐ | ☐ | ☐ |
| P1,000,001 to 5,000,000 | ☐ | ☐ | ☐ | ☐ | ☐ | ☐ |
| P5,000,001 to P10,000,000 | ☐ | ☐ | ☐ | ☐ | ☐ | ☐ |
| P10,000,001 to P50,000,000 | ☐ | ☐ | ☐ | ☐ | ☐ | ☐ |
| P50,000,001 and above | ☐ | ☐ | ☐ | ☐ | ☐ | ☐ |
| N/A | ☐ | ☐ | ☐ | ☐ | ☐ | ☐ |
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F. Total amount of funds used by the corporation annually for its projects and programs for the years indicated below:
Please check (☑) the appropriate amount:
| 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | |
|---|---|---|---|---|---|---|
| P0 to P500,000 | ☐ | ☐ | ☐ | ☐ | ☐ | ☐ |
| P500,001 to P1,000,000 | ☐ | ☐ | ☐ | ☐ | ☐ | ☐ |
| P1,000,001 to 5,000,000 | ☐ | ☐ | ☐ | ☐ | ☐ | ☐ |
| P5,000,001 to P10,000,000 | ☐ | ☐ | ☐ | ☐ | ☐ | ☐ |
| P10,000,001 to P50,000,000 | ☐ | ☐ | ☐ | ☐ | ☐ | ☐ |
| P50,000,001 and above | ☐ | ☐ | ☐ | ☐ | ☐ | ☐ |
| N/A | ☐ | ☐ | ☐ | ☐ | ☐ | ☐ |
G. Source of fund, in any form except equity, including but not limited to debt, endowment/grants, contributions and donations
i. As to person/entity (Please check (☑) all that apply)
☐ Filipino citizen in the Philippines ☐ Filipino citizen outside the Philippines, please specify the country. (Drop down provided: Philippines, Angola, Brazil, Canada, Denmark, USA, etc.) ____________________ ☐ Foreign individual in the Philippines ☐ Foreign individual outside the Philippines, please specify the country (Drop down provided: Philippines, Angola, Brazil, Canada, Denmark, USA, etc.) ____________________ ☐ Public officer of the Philippine government ☐ Public officer of a foreign government, please specify the country (Drop down provided: Philippines, Angola, Brazil, Canada, Denmark, USA, etc.) ____________________ ☐ Politically Exposed Person or PEP Close Associate (domestic or foreign) ☐ Philippine national government ☐ Philippine local government ☐ Foreign government, please specify the country (Drop down provided: Philippines, Angola, Brazil, Canada, Denmark, USA, etc.) ____________________ ☐ Private institution/business/company in the Philippines ☐ Private institution/business/company outside the Philippines ☐ Philippine government financial institution ☐ Foreign government financial institution or their equivalent ☐ Philippine government owned and controlled corporations ☐ Foreign government owned and controlled corporations or their equivalent, please specify the country (Drop down provided: Philippines, Angola, Brazil, Canada, Denmark, USA, etc.) ____________________ ☐ International foreign funding institutions (e.g. Canada International Development Agency (CIDA), Australian Government Overseas Aid Program (AUSAID), New Zealand International Aid and Development Agency (NZAID), Japan International Cooperation Agency (JICA), United Nations System Organizations (such as UNICEF, WTO, ILO) United States Agency for International Development (USAID), etc.) please specify (Drop down provided: Philippines, Angola, Brazil, Canada, Denmark, USA, etc.) ____________________ ☐ Others, please specify ____________________
ii. As to geography
(Drop down provided: Philippines, Angola, Brazil, Canada, Denmark, USA, etc.)
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H. Current and Intended Beneficiaries
i. As to person/entity (Please check (☑) all that apply)
☐ Artisanal fisherfolk ☐ Children ☐ Differently-abled persons/Persons with disability ☐ Educational institutions ☐ Farmer-peasant ☐ Informal settlers ☐ LGBTQ+ ☐ Overseas workers ☐ Refugees ☐ Religious groups/sects ☐ Senior citizens/Elderly ☐ Transportation groups ☐ Urban poor ☐ Vendor Associations ☐ Veterans ☐ Victims of calamities and disasters ☐ Women ☐ Workers in the formal sector and migrant workers ☐ Workers in the informal sector ☐ Youth and students ☐ Others, please specify ____________________
ii. As to geography
Within the Philippines:
☐ Autonomous Region in Muslim Mindanao ("ARMM") ☐ Cordillera Administrative Region (CAR) ☐ National Capital Region ("NCR") ☐ Region I (Ilocos Region) ☐ Region II (Cagayan Valley) ☐ Region III (Central Luzon) ☐ Region IV-A (CALABARZON) ☐ Region IV-B (MIMAROPA) ☐ Region V (Bicol Region) ☐ Region VI (Western Visayas) ☐ Region VII (Central Visayas) ☐ Region VIII (Eastern Visayas) ☐ Region IX (Zamboanga Peninsula) ☐ Region X (Northern Mindanao) ☐ Region XI (Davao Region) ☐ Region XII (SOCCSKSARGEN) ☐ Region XIII (Caraga Region)
Outside the Philippines:
(Drop down provided: Philippines, Angola, Brazil, Canada, Denmark, USA, etc.)
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III. Self-Assessment Questionnaire (add questions/parameters for self-assessment)
Please put check (☑) mark, if your answer is "YES" or "NO," whereby "YES" means that the item currently applies/is observed or in place. If you answered "Yes" to any of the items below, please provide a brief description of its details on the space provided.
| NO | YES | If "YES", provide details/brief description below¹ | ||
|---|---|---|---|---|
| 1. | Do you have written guidelines prior to accepting donations/funding/endowments/ grants/contributions? | ☐ | ☐ | <br><br>__________________________________________________ |
| 2. | Do you have predetermined criteria in the selection of your beneficiaries/grantees/recipients? | ☐ | ☐ | <br><br>__________________________________________________ |
| 3. | Do you have any individual, Technical Working Group (TWG) or Committee within your organization that is responsible for regulatory compliance? | ☐ | ☐ | <br><br>__________________________________________________ |
| 4. | Do you have any individual, body or committee within your organization that is responsible for internal controls to ensure that resources and funds are appropriately identified, utilized, and accounted for? | ☐ | ☐ | <br><br>__________________________________________________ |
| 5. | Does your organization have a financial budget plan for allocating resources to specific programs/activities at least on an annual basis? | ☐ | ☐ | <br><br>__________________________________________________ |
| 6. | Is your organization affiliated with any umbrella organization with respect to the purpose for which your organization was established (ex. Caucus of Development NGO Networks ("CODE-NGO")? | ☐ | ☐ | <br><br>__________________________________________________ |
| 7. | Do you have criteria for the selection of the members of your board of trustees? | ☐ | ☐ | <br><br>__________________________________________________ |
| 8. | Have any of your representatives or intended trustees or officers attended/participated in any seminar or symposium relating to the establishment and/or operation of an NPO? | ☐ | ☐ | <br><br>__________________________________________________ |
| 9. | In raising funds, do you deposit and course them through an institution/entity supervised and/or regulated by the Bangko Sentral ng Pilipinas such as banks, E-Money Issuers (EMIs), remittance centers, etc.? | ☐ | ☐ | <br><br>__________________________________________________ |
| 10. | In disbursing funds, do you course them through an institution/entity supervised and/or regulated by the Bangko Sentral ng Pilipinas such as banks, E-Money Issuers (EMIs), remittance centers, etc.? | ☐ | ☐ | <br><br>__________________________________________________ |
¹ Declarations made herein may be subject to validation/audit by the Commission.
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PRIVACY NOTICE
SEC is committed to ensuring that any personal data collected are protected and secured. We only use such personal data for regulatory and risk assessment purposes and to provide additional measures pursuant to the regulatory and supervisory powers of this Commission and pursuant to its mandate to protect Non-Profit Organizations (NPOs) from money laundering and terrorist financing abuse. Our privacy policy values and protects your personal data under the Data Privacy Act of 2012.
For our privacy policy, please refer to http://www.sec.gov.ph/privacy-policy/
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DECLARATION/VERIFICATION
I, ____________________ (Name) ____________________ (Position) of ____________________ (Name of Corporation), agree and consent that the Securities and Exchange Commission ("Commission"), and other regulatory agencies with which the Commission may coordinate and cooperate, may collect, use, disclose, share and process personal information of individuals provided in this form and/or other corporate documents submitted and filed with the Commission, for the purpose of implementing the provisions of the NPO Guidelines.
Further, I declare under the penalty of perjury, that all matters set forth herein have been made in good faith, duly verified by me and to the best of my knowledge and belief, are true and correct.
Done this ____ day of ________________, 20 in ____________________.
Signature over Printed Name
Subscribed and sworn to before me in ____________________ on ____________________, affiant personally appeared before me and exhibited to me his/her competent evidence of identity ____________________ issued at ____________________ on ____________________.
NOTARY PUBLIC FOR ____________________ Notarial Commission No. ____________________ Valid until ____________________ Roll of Attorney No. ____________________ PTR No. ____________________ IBP No. ____________________ Office Address: ____________________
Doc. No. __________ Page No. __________ Book No. __________ Series of __________
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