SEC Encourages Non-Compliant and Suspended Firms to Avail the Amnesty Program by December 31

The Securities and Exchange Commission (SEC) encourages non-compliant, suspended, or revoked entities to avail of the amnesty program pursuant to SEC Memorandum Circular No. 20, Series of 2023.

The corporate regulator’s amnesty program aims to improve the compliance of companies by allowing them to settle the reduced penalty for the late and non-filing of their general information sheets (GIS), annual financial statement (AFS), and official contact details.

Corporations that will avail of the amnesty program must pay a fixed amnesty rate of ₱5,000, regardless of the number of years and reports they failed to submit.

On the other hand, suspended and revoked corporations will only be required to pay 50% of their total assessed fines, on top of a ₱3,060 petition fee.

Corporations may avail of amnesty by accepting the web-based Expression of Interest form on their SEC Electronic Filing and Submission Tool (eFAST) accounts. Submission of all other requirements will be accepted until January 31, 2024, so long as the company has filed its expression of interest before December 31 (subject to extension upon approval by the SEC).

Non-compliant corporations must also upload and submit their latest due General Information Sheet (GIS) and Audited Financial Statements (AFS) on eFAST before January 31, 2024. Suspended and revoked Corporations must submit their respective petitions to lift their suspension or revocation on eFAST, along with their latest GIS and AFS, within the same period.

A new scale of fines will be implemented starting January 1, 2024, if non-compliant or suspended corporations fail to avail the amnesty program.

Tighter Due Diligence on Non-Compliant Firms

In relation to the SEC’s amnesty program, the Anti-Money Laundering Council (AMLC) wants to strengthen the initiatives in hastening the removal of the Philippines from the gray list of the Financial Action Task Force (FATF) by having updated records and information of corporations.

The corporate regulator has issued a list of companies that can benefit from availing the SEC’s amnesty program. This list included 22,402 companies that are in danger of having their certificates of incorporation revoked for failing to submit their GIS within five years from the respective dates of their incorporation and 298,335 corporations that are in danger of being placed under the delinquent status for failing to submit their GIS for three times, consecutively or intermittently, in the same time period.

Start Anew by Availing the SEC Amnesty Program

Entrepreneurs must always keep in mind the laws and regulations when operating a business. Failure to comply will result in suspension and revocation of permits and certificates. However, the Philippines offered an Amnesty program so that non-compliant and suspended firms could still have the chance to pay and continue their business ventures legally.

With our dedicated and experienced team of business consultants, allow us to help you in practicing good corporate governance by properly complying with the SEC through our corporate secretarial services.