2019 Non-Profit Organizations Guidelines; Securities and Exchange Commission Memorandum Circular No. 25, Series of 2019 (Philippines)

The Memorandum Circular provides for a regulatory framework for the protection of Securities and Exchange Commission (SEC) registered non-profit organizations (NPOs) from money laundering and terrorist financing abuse. The SEC provided for focused measures to develop a risk-rating system for all SEC registered NPOs. Among these measures are the promotion of transparency among NPOs, the adoption of good governance policies for NPOs, proportionate and risk-based supervision and monitoring, and sustained outreach programs. For NPOs classified at risk, they are required to establish an audit committee, or appoint a responsible officer or employee whose responsibility is to perform audit functions, and are subjected to further compliance requirements. The SEC is further mandated to conduct, at least once a year, regular sustained outreach or consultation programs to raise awareness on money laundering and terrorism financing issues.