Assessing implementation of EITI’s beneficial ownership requirement

This paper outlines a framework how to assess progress in meeting the beneficial ownership requirement (2.5) in EITI Validation. The framework was decided by the Board in June 2019 (2019-48/BM-43). The framework seeks to ensure that implementing countries have adequate guidance in preparation for the approaching 1 January 2020 deadline. The framework consists of a technical assessment of meeting the requirements’ components, and an assessment of effectiveness.

In the first stage (until 31 December 2021), Validation will consider a set of initial criteria that would qualify for an assessment of ‘satisfactory progress’ in meeting the requirement. This gradual approach aims at recognising the challenges with systematically disclosing beneficial ownership information and the efforts made by countries to develop supportive legal and institutional frameworks. As such, the gradual approach will allow for countries to account for the progress made and identify the next steps needed to disclose beneficial owners in their jurisdictions.

The timing of the assessment of Requirement 2.5 will follow the agreed Validation schedule with adjustments to ensure all countries undergo the assessment within a reasonable timeframe.