Beneficial Ownership Disclosure: From Why to How

Revisiting a year ago: BO roadmap Process NRGI in collaboration with ZEITI organized a workshop on BO ZEITI has produced a beneficial ownership roadmap; which outlines the plans for how to implement beneficial ownership disclosure by January 2020 On the first point. I will explain the activities using the table you sent in the earlier slide. For the second point, I will highlight some of the points in the roadmap as a form of refreshing their memories Key objectives and dual part approach

Promoting good governance and accountability in the extractive sector; Deterring corruption in the allocation of extractive rights; Preventing abuse of Zambia’s tax and incorporation rules; Support of efforts to address money laundering and other financial crimes in the economy; Promoting Zambian citizens’ participation in the monitoring of extractive activities, including local content provisions; Promoting citizens getting the full economic benefit of the nation’s natural resources, especially in communities where extraction is taking place.

Dual approach 1.2 Institutional framework for beneficial ownership disclosure We will consult with the applicable government agencies that currently manage the following data collection processes in Zambia to determine if public beneficial ownership disclosure could be added to and sustainably managed as part of these systems:  Mining rights database: o Coverage: Applications for exploration license/mining license/processing license/trading permit, etc., including coverage of joint ventures. (Covers companies that “bid for” extractive assets) o Key contacts: Ministry of Mines, Director of Mining Cadastre Office & Regional Mining Bureaux  Company filings database: o Coverage: Foreign and local company registration, incorporation, annual reporting (Covers companies that “operate” and “invest in” extractive assets) o Key contacts: PACRA and regional offices, and Ministry of Justice regarding interpretation of Companies Act reforms

Tools Used in Ghana: Companies Act/Register

What can ZEITI do Walk them the types of activities: in April 2016 this was the first activity GHEITI took Meeting with the president CSO did this particular thing; also there are so many groups within GH Nexus of activites that GHEITI did resulted in strong commitment form GHEITI and CSOs GHEITI playing important convening role. Key ministry – min. of finance Law is subject to comments… hopefully Zambia can get it better.

Linking Register & Licensing Approaches GHEITI leveraging partnership. NRGI providing legal advise. WE are doing the review. Ready to provide support From the briefing (box above). Model provision you could use. Open data format. Everyone country thinks companies are register, but sometimes they are not. Or a lot might have changed. E&P still in process, but linking up licensing and register is what we are recommending. See attached filing registry.

Role of the MSG (ZEC) Drawing on the roadmap. The different agencies involved. Types of govt agencies you want (1.1)Convene technical roundtables For a later period. EITI standard requires id for msg… any material deviation. Monitor them more the activities in line with that requirement Engage with parliament before passage of the bill; to address certain key issues After passage of the bill; ZEC should strategize and focus on actual implementation of BO Raise awareness of the importance of BO disclosure Since ZEITI is currently completing a legal review to understand and identify any gaps in the existing framework, there are opportunities for reform. These are good starting points for ZEC and other CSOs to monitor and push for meaningful implementation which can lead to improved extractive sector governance After passage: support the actual implementation of beneficial ownership disclosure, which might require legal and regulatory reform, decisions related to reporting scope and thresholds, designing and setting up a beneficial ownership registry and ensuring that the reported information is accurate. help raise awareness of the importance of beneficial ownership disclosure in the oil, gas and mining sector by pointing out how it can prevent corruption and tax avoidance, and making sure that the disclosed data is scrutinised and analysed