Beneficial ownership: Disclosing the identity of the beneficial owner EITI International Secretariat

Beneficial ownership identity: Why is it important Information about the identify of a beneficial owner is most useful when includes has sufficient detail to ascertain who the beneficial owner is. Simply disclosing a name might not be that helpful. It is important to discuss possible ways of addressing privacy and security concerns, including what information should be collected by government authorities and how much of that should be publicly available.

Beneficial ownership identity: What the EITI Standard says “Information about the identity of the beneficial owner should include the name of the beneficial owner, the nationality, and the country of residence…” (# 2.5.d).  Minimum disclosure. “It is also recommended that the national identity number, date of birth, residential or service address, and means of contact are disclosed” (# 2.5.d). Recommended. The EITI Standard (# 2.5.c) also states that the beneficial ownership disclosures should include “the level of ownership, and details about how ownership or control is exerted”  Minimum disclosure.

Beneficial ownership identity: International examples: UK Name Date of birth Nationality Country, state or part of the UK where the BO usually lives Service address Residential address The date when the beneficial interest was acquired How the ownership or control is exerted Residential address and the day of the BO’s date of birth does not appear in the public register, but is available to authorities. In exceptional circumstances and based on proven serious risk of violence or intimidation to the BO, the company can apply for disclosure exemption.

Beneficial ownership identity: International examples: UK

Beneficial ownership identity: International examples: Ukraine Name and family name Patronymic (if any) Country of citizenship Type and number of passport Place of residence Registration number of taxpayer (if any). However, not all this information is public – for the sake of personal data the passport number and personal taxpayer number remain with the authorities only. Challenge: Transliteration of the names of beneficial owners

Beneficial ownership identity: International examples: 4th EU AML Directive Name Month and year of birth Nationality Country of residence Nature and extent of beneficial interest held Currently no requirement for public disclosure, but amendments underway. In exceptional circumstances and where the BO could be exposed to the risk of fraud, kidnapping, blackmail, violence or intimidation, or where the BO is a minor or otherwise incapable, the company can apply for disclosure exemption.

Beneficial ownership identity: International examples: EITI pilot

Beneficial ownership identity: International examples: EITI pilot Example: Data from DRC’s 2013 EITI Report Name Year of birth Nationality Identity # Identity # Residential address The EITI Standard encourages further details about the identity.

Beneficial ownership identity: International examples: EITI pilot Example: Data from Zambia’s 2013 EITI Report The EITI Standard encourages further details about the identity.

Beneficial ownership identity: Issues to consider Consult widely with government, companies and the wider public on how much details about the beneficial owner should be disclosed. Consider costs and benefits, and international norms. In considering privacy or security concerns, opportunities for redacting information or providing for exemptions in exceptional circumstances can be part of the solution. Comprehensive data collection but incremental disclosure could also be considered. It is important to disclose an explanation of how ownership is exercised, e.g. what conditions of the BO definition does the BO satisfy?

Beneficial ownership definitions: Discussion Which details regarding the identity of the BO would be it be desirable that government authorities collect in order to achieve the national objectives of beneficial ownership transparency? Why? Consider the examples in the presentation and note down your preferences. How much of this information should be published? Why? Consider EITI requirements Consider international norms and practice Consider cost and benefits Where there are privacy or security concerns, can these be addressed without compromising on the availability of information to relevant government authorities or the wider public? Based on your discussion, agree how much details should be collected and disclosed as part of the EITI disclosure process. A useful way of doing this exercise is to do point 1 as a collective brainstorming, jotting down suggestions from participants. One there is an agreed list of details to be collected, you can move on to a collective discussion about how much of this detail should be published.

Author: Dyveke Rogan Date: January 2017 Email: drogan@eiti.org - Telephone: +47 22 20 08 00 Address: EITI International Secretariat, Ruseløkkveien 26, 0251 Oslo, Norway