SEC Released the 2019 – NPO Guidelines Protecting registered-NPOs from Laundering and Terrorist

Financing Abuse

- Jose Florante M. Premfilo, (February 19, 2020)

Security and Exchange Commission (SEC) released the memorandum circular No. 25, Series of 2019 or
the “2019-NPO Guidelines” last december 27, 2019 that immediately took effect on the following day.
The memorandum defines “NPO” as a Non-stock Corporation operating as educational, cultural,
charitable, and social institution for the benefit of the society not owning shares or stocks. This
guidelines would protect them from laundering and terrorist financing abuse. Under this memorandum,
NPOs are encourage to show transparency and good governance. Public access of information about
donations whethere accepted or refused is a must for NPOs. They must also accomplished the
Mandatory Disclosure Form (MDF) within 60 days from the effective date of the said memorandum. If
there was a prior submission upon effectiveness of this, they will no longer need to submit an another
one. NPOs need to comply with some requirements like having an audit committee, preparation of
Audited Annual Statements, laws and regulations subject to what are being prescribed by SEC,
sustainable outreach program, and establish an actual record of donors ot sources of funds.

Reference:

http://www.conventuslaw.com/report/philippines-2019-npo-guidelines-issued-to-protect/