Compliance of Microfinance NGOs with the 2019 NPO Guidelines

January 27, 2020 MICROFINANCE NGO REGULATORY COUNCIL SEC ADVISORY COMPLIANCE OF MICROFINANCE NGOS WITH THE 2019 NPO GUIDELINES WHEREAS , microfinance nongovernment organizations (MF-NGOS) are defined under Section 3 (h) of Republic Act No. 10693, otherwise known as the Microfinance NGOs Act , as "nonstock, nonprofit organization[s] duly registered with the Securities and Exchange Commission (SEC), with the primary purpose of implementing a microenterprise development strategy and providing microfinance programs, products, and services, such as microcredit and microsavings, for the poor and low-income clients"; WHEREAS , Section 1.2 of SEC Memorandum Circular No. 25, Series of 2019 Re: 2019 Guidelines for the Protection of SEC Registered Non-Profit Organizations (NPOs) from Money Laundering and Terrorist Financing Abuse, or the 2019 NPO Guidelines , provides that "[the] Guidelines shall be observed by all Non-Stock Corporations unless otherwise indicated [t]herein"; WHEREAS , based on the above definitions, MF-NGOs are included in the scope of the 2019 NPO Guidelines and therefore, are required to comply with the provisions thereof; WHEREAS , the 2019 NPO Guidelines became effective immediately after its publication in the Manila Bulletin and Manila Standard on 28 December 2019; WHEREAS , Section 9.1 of the 2019 NPO Guidelines directs "all SEC registered Non-Stock Corporations to accomplish the revised Mandatory Disclosure Form (MDF) attached [t]hereto as Annex "A" and submit the same to the [SEC] 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 [or on or before 28 February 2020]"; WHEREAS , Section 9.2 of the 2019 NPO Guidelines states that "[c]orporations which have already submitted their MDF pursuant to SEC MC 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 [in the 2019 NPO Guidelines]. However, said corporations may be required by the [SEC] to submit additional information sought in the revised MDF under [the] amended guidelines"; WHEREAS , pursuant to Section 9.6 of the 2019 NPO Guidelines, the SEC has issued a notice to all SEC Registered Non-Stock Corporations Re: Filling Out of the MDF Online (Please see: http://www.sec.gov.ph/wp-content/uploads/2020/01/2020Notice_MDFSubmission.pdf ); WHEREAS , under the said notice, all SEC Registered Non-Stock Corporations may fill out and submit the MDF beginning 08 January 2020; IN VIEW OF THE FOREGOING , MF-NGOs are directed to comply with the 2019 NPO Guidelines and submit their respective MDF on or before 28 February 2020 to avoid incurring any penalty, including the revocation of their certificates of incorporation. January 27, 2020, Pasay City. (SGD.) EMILIO B. AQUINO Chairperson