Synopsis of Findings
1. The definition in the PD2020-791 applies to the extractives sector while the definitions in Law 2018-03 and the 2021 Finance Law apply to the whole economy. Although the definitions are not the same, they all define a beneficial owner as a natural person who can have direct and indirect ownership and control. A non-exhaustive list of forms of control is provided and other relevant forms of ownership and control are covered through a catch all clause. PD2020-791 sets a threshold of 2% while Law 2018-03 and the 2021 Finance Law set a threshold of 25%.
2. BO declarations include scope to include information on publicly listed companies and SOEs. BO declarations apply to domestic and foreign beneficial owners equally. There are no exemptions.
3. Under PD2020-791, the RCCM collects BO Information on extractive companies that is sufficient to uniquely identify each beneficial owner, declaring the company and the nature and extent of ownership or control. However, information on intermediaries is not collected. The 2021 Finance Law does not specify the detail of information to be collected on each beneficial owner. For example, while it requires collection of information on the identity of each beneficial owner, it does not specify the exact details such as name, date of birth and unique identifying number. Law 2018-03 does not create a requirement to declare BO.
4. RCCM collects the BO information of extractive industries in a central register. The Tax Authority will also collect information on BO in its own central register, when the implementing regulations are effective.
5. Extractive sector BO data is made public through the annual EITI report which is free of charge. However, accessing BO information through a report that is published annually does not facilitate the rapid and efficient access to BO information. There is also a facility to request extractive industry BO information from the RCCM, which is granted automatically.
6. The BO Data is not available in structured format. The BO data published through the EITI reports is available as an excel spreadsheet.
7. The existing BO reporting system for extractive sector companies has only a limited level of verification. This verification only authenticates the identity of the beneficial owner.
Data should be up-to-date and auditable
8. Changes to extractive sector BO data need to be reported within one month. A reporting company is required to, reconfirm its BO data on an annual basis. The 2021 Finance Law will set a 15-day deadline for the reporting of changes when the BO provisions are effective.
Sanctions and Enforcement
9. Both financial and non-financial sanctions are in place for disclosure requirements under PD2020-791. Sanctions cover the person making the declaration, the beneficial owner, registered officers of the company, and the declaring company.