Beneficial ownership roadmap webinar 2: Developing a definition for beneficial ownership and report obligations for politically exposed persons.

This is the first webinar in our series on how to develop a beneficial ownership roadmap. For more guidance on beneficial ownership, visit our dedicated guidance page.

This training is intended for National Secretariats. For questions about this series, contact vponsford@eiti.org.

Beneficial Ownership Roadmap webinar 2: Developing a definition for beneficial ownership and report obligations for politically exposed persons.

Tuesday 9 August 10 am Oslo time | Duration: 1 hour

Facilitators: Bady Balde and Dyveke Rogan

Part 1: Developing a definition for beneficial ownership

Duration: 30 minutes

The EITI Standard defines a beneficial owner in respect of a company as “the natural person(s) who directly or indirectly ultimately owns or controls the corporate entity” (Requirement 2.5.f.i). This may thus include the person(s) who own or control the shares or voting rights in a company limited by shares, the person on whose behalf shares in a company are held by somebody else, or the person(s) that by other means control the way the company is run or otherwise derive a substantial economic benefit from the company’s activities.

The EITI Standard mandates the multi-stakeholder group to further develop a definition that suits local circumstances. Details such as the names of the owners of extractive companies are often most useful when accompanied by further information about the identity, enabling people to ascertain who really owns the company.

In this webinar, participants will discuss challenges and benefits of disclosing certain details about the identity of beneficial owners and consider how much details it would be desirable to disclose and why. Participants will also consider the following questions: Is the concept of beneficial ownership defined in your country, e.g. in any existing legislation?  Considering other available examples of beneficial ownership definitions, what would be an appropriate definition to include in the EITI BO declaration form? Would ownership thresholds be appropriate and if so, at what level?

Part 2: Reporting obligations for politically exposed persons 

Duration: 30 minutes

Complex ownership structures are sometimes used to hide cases where influential people such as Politically Exposed Persons (PEPs) hold ownership in oil, gas and mining companies. While it might not be illegal for PEPs to hold such ownership, experience such as the Panama Leaks has unfortunately shown that it may often be the result of corruption or conflicts of interest.

In this webinar, participants will consider the following questions: Is there a national definition of PEPs in your country?  Are there existing national reporting obligations for PEPs?  How do these work in practice? Would the EITI BO declaration form be appropriate to ensure PEP disclosures in your country? How can I adapt the EITI’s model beneficial ownership declaration form accordingly.