Beneficial ownership: Data collection and publication

Beneficial ownership data collection: Short term “As of 1 January 2020, it is required that implementing countries request, and companies disclose, beneficial ownership information for inclusion in the EITI report…” (#2.5.c). In the short term, BO data can be collected through the EITI reporting mechanism, e.g. by the Independent Administrator or online EITI reporting tools, using the EITI BO declaration form: https://eiti.org/document/tools-to-include-beneficial- ownership-disclosure-in-eiti-reporting MSGs are strongly encouraged to start piloting BO disclosures in their next EITI Report.

Beneficial ownership data collection: Short term

Beneficial ownership data collection: Medium term “Where possible, beneficial ownership information should be incorporated in existing filings by companies to corporate regulators, stock exchanges or agencies regulating extractive industry licensing…” (#2.5.c). “It is recommended that implementing countries maintain a publicly available register of the beneficial owners…”(#2.5.a).  MSGs are strongly encouraged to consider opportunities for mainstreaming BO disclosures and build a national beneficial ownership register.

Beneficial ownership data collection: Medium term

Beneficial ownership: Options for building a register Reforming existing company register to include BO Note: May depend on whether you wish to extend BO disclosure to all sectors, or limit to extractives. Considerations: Amendments to statutory objectives of the company register to cover the role of collecting, verifying and maintaining BO information? Could the provision of beneficial ownership information to the company registry be made a condition for incorporation, or creating of legal entities? How would changes in the BO information be monitored and recorded over time? Who would enforce these reporting requirements? What would the sanctions for non- compliance be? Would all the BO information in the register be publicly available? Are companies that bid for/apply for extractive licenses required to be registered or incorporated in the country? If not, how would these be captured? Data standards.

Beneficial ownership data collection: Building a register 2. Reforming existing license register to include BO Note: EITI Requirements apply to companies that bid for, operate or invest in extractive assets. Considerations: Amendments to statutory objectives of the licensing authority to cover the role of collecting, verifying and maintaining BO information? Could the provision of beneficial ownership information to the licensing authority be made a condition of the license or requirement of the license application? How would changes in the BO information be monitored and recorded over time? Who would be the competent authority to enforce these reporting requirements? What would the sanctions for non-compliance be? Would all the BO information in the register be publicly available? Or would some be available to the competent authority only? Data standards

Beneficial ownership data collection: Building a register 3. Build a new standalone national BO register Note: To be considered if there is no existing filing system that could be reformed to include BO data. Considerations: Which government agency would be in charge of maintaining the register? Would this mandated be enshrined in the statutes of the agency? Ensuring streamlining with other agencies in charge of company or license registrations. Sustainability risks. Data standards 4. Any other options?

Beneficial ownership data collection: Discussion In the short term: What is the timeframe for the next EITI Report? Are there opportunities for piloting BO disclosure for the companies that are covered in the report? In the medium/long term: Discuss the considerations for reforming the company register to include BO data. What are the opportunities or challenges related to integrating BO disclosure in the company register in the future? What are the implications for the legal and institutional framework for beneficial ownership transparency? Discuss the considerations for reforming the license register to include BO. What are the opportunities or challenges related to integrating BO disclosure in the license register in the future? What are the implications for the legal and institutional framework for beneficial ownership transparency? Are there other existing company filing mechanisms or registers that could potentially be used to host BO data? Based on the discussion, what is the preferred option, next steps and timeframes?

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