MANILA, Philippines – The corporate regulator has warned the public against conducting business with companies trading gold and silver coins.
“The Securities and Exchange Commission (SEC) hereby advises the public against activities of corporations involving the circulation and selling of gold and silver coins that may not be sanctioned by the proper government authorities,” the agency said in a public notice.
SEC has received reports of gold and silver coins trading in Cagayan de Oro and other parts of the country.
Under the law, the Bangko Sentral ng Pilipinas (BSP) has the sole power to issue currency in the Philippines.
“No other person may put into circulation as currency any notes, documents or coins, gold or not, without its prior authority,” SEC said.
In dealing with gold as commodity, the SEC reminded the public that gold produced by small-scale miners should only be sold to the BSP under the People’s Small Scale Mining Act.
Business ( Article MRec ), pagematch: 1, sectionmatch: 1
Furthermore, treasure hunting activities that might involve gold and other precious metals can only be conducted with written authority from the National Museum, SEC said.
“To avoid possible penalties and prosecution, it is best to abstain from dealing in gold and silver of spurious origin or those that are being traded through illicit channels,” SEC said.
The corporate regulator said SEC-registered entities engaged in illegal dealings with gold and silver should be reported to the agency’s Enforcement and Investor Protection Department.
To date, there are roughly 800,000 SEC-registered companies, of which 500,000 are active corporations.