THE Securities and Exchange Commission (SEC) has ordered the submission of Mandatory Disclosure Forms (MDF) for non-profit organizations (NPOs) to protect them from money laundering and terrorist financing abuse.
In a memorandum circular released by the SEC on Dec. 27, 2019, the agency required all non-stock organizations to submit an MDF due to the nature of their activities which involve the raising and disbursing and th cross-border movement of funds.
SEC said the submission of the MDF aims to determine the composition of the sector of non-stock corporations registered with the agency, as well as to identify which of them are primarily engaged in raising and disbursing of funds for charitable, social, educational, purposes and other forms of “good works.”
“This is in line with the need to conduct a risk based supervision of the non-profit sector engaged in such activities as required by international standards and best practices,” said the SEC’s enforcement and investor protection department.
The submission of MDFs must be done within 60 days from the effectivity of the memorandum, which is on or before Feb. 25, 2020. (JOB WITH PR)