Guyana Urged to Adopt Global Standard for Beneficial Ownership Transparency
A global push for transparency in company ownership has reached Guyana, with calls for the country to adopt a new standard that would commit all countries to setting up national, public registers of companies, disclosing the real individuals who own, control or benefit from them.
The Request and Endorsements
Transparency International (TI) submitted a request to the UN General Assembly, which has been endorsed by 700 signatories, including renowned academics and research centers, companies and business executives, civil society groups and activists, as well as several government agencies and public officials. This request urges countries to adopt a new standard for beneficial ownership transparency.
Why Beneficial Ownership Transparency Matters
- Anonymous companies are vehicles for corruption and other illicit practices that jeopardize the common good.
- Identifying human owners of businesses is crucial in preventing illegal activities such as money laundering and tax evasion.
- Establishing ownership thresholds, such as percentage of shares or capital needed to establish ownership, helps to prevent shell companies and other schemes.
Guyana’s Current Situation
In Guyana, questions about beneficial ownership have been raised in relation to the Canje and Kaieteur offshore oil blocks, which were controversially awarded in 2015 under the then PPP/C government. The Guyana Extractive Industries Transparency Initiative (GYEITI) has attempted to streamline beneficial ownership disclosure measures, including identifying and insulating politically exposed persons.
Challenges in Guyana
- Beneficial ownership is not defined in any of Guyana’s natural resources-related legislation.
- There is no law requiring companies in the extractive resources sector to disclose the beneficial owner behind the operation or the person who has effective control of the company.
The Call for Action
Maíra Martini, Research and Policy Expert at Transparency International, emphasized that “crimimals and the corrupt must have nowhere to hide their ill-gotten loot. This means universal adoption of public beneficial ownership registers, based on a robust definition of beneficial ownership and accompanied by strong verification processes.”
The call for action comes ahead of the UN General Assembly Special Session Against Corruption in June, where country representatives will gather to discuss urgent action against corruption and other financial crimes.
What’s at Stake
- The lack of transparency in company ownership allows criminals and corrupt individuals to hide their assets and perpetuate illegal activities.
- Universal adoption of public beneficial ownership registers would help to prevent money laundering, tax evasion, and other illicit practices.