GHANA TAKES A MAJOR STEP TOWARDS TRANSPARENCY IN OWNERSHIP DISCLOSURE

Ghana has finally taken a significant step towards enhancing transparency and accountability in its corporate sector with the introduction of beneficial ownership disclosure regulations.

Ghana’s Journey to Beneficial Ownership Disclosure

Ghana’s journey towards beneficial ownership disclosure began several years ago when the country failed to meet key performance targets under a peer review conducted by the Inter-Governmental Action Group against Money Laundering in West Africa (GIABA). However, it was not until last year that Ghana EITI, with the support of stakeholders, began working on building momentum for beneficial ownership transparency.

The Pressure Builds

Following the release of the Panama Papers and global efforts to address anti-corruption and tax evasion, the government came under pressure to act on beneficial ownership disclosure. The then President John Dramani Mahama’s statement at the UK Anti-Corruption Summit in May 2016 provided increased political commitment across the government.

National Consultations Lead to Expanded Scope

Ghana EITI engaged with stakeholders, including civil society organisations and private sector actors, to identify the necessary amendments and harmonise conflicting legal issues. As a result of national consultations, it was agreed that the scope of beneficial ownership disclosure should be expanded beyond extractives and apply to all companies registered in Ghana.

Implementation of Beneficial Ownership Disclosure Regulations

The Companies Act 1963 was amended in August 2016 to pave the way for implementation of a beneficial ownership disclosure regime. The law mandates the Registrar-General to collect information on company ownership and maintain a register.

Government Support for Implementation

In an interview, Ghana’s Vice President Alhaji Dr. Mahamudu Bawumia reaffirmed the government’s commitment to providing support for making further progress with BO implementation. “It is necessary for lifting the veil off public officials who hide behind cronies to amass wealth through shady public procurements,” he said.

Ghana’s new President, Nana Addo Dankwa Akufo-Addo, has also declared his support for beneficial ownership disclosure.

Looking Ahead

To ensure effective implementation of the regulations, Ghana will need to develop an implementation framework with clear timelines. Discussions are ongoing among key stakeholders on how to support the Registrar-General in developing an implementation plan.

Ghana EITI is poised to coordinate these discussions at a roundtable meeting planned for the first quarter of 2017. The country has made significant progress in fulfilling its beneficial ownership disclosure obligation, and GHEITI takes credit for this achievement.