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Improving Beneficial Ownership Reporting in Senegal

Key Findings

The current state of beneficial ownership (BO) reporting in Senegal’s extractive industry has several limitations that hinder effective data collection and use. The main findings are:

  • Lack of detailed data: The current reporting system does not provide sufficient detail to understand and utilize the collected data.
  • Insufficient coverage of State-Owned Enterprises (SOEs): The government’s data collection form includes fields related to publicly-listed companies but neglects SOEs.
  • Unclear number of beneficial owners: Although 118 beneficial owners of extractive companies have been submitted, it is unclear how many companies this relates to.

Recommendations

To address these limitations and improve transparency, the following recommendations are proposed:

Enact Specific Legislation

Senegal should enact specific, stand-alone legislation to create and maintain an economy-wide BO reporting system that meets the Open Ownership Principles and aligns with international best practices.

Establish a Multi-Disciplinary Taskforce

The government should establish a multi-disciplinary taskforce to design the BO reporting system, advise the government, draft necessary legislation, undertake stakeholder engagement, and navigate the draft law through the legislative system.

Clarify Reporting Requirements for SOEs and Listed Companies

ITIE-SN should clarify the reporting requirements for SOEs and companies with shares listed on a stock exchange. Exemptions should only be applied where the stock exchange has adequate ownership disclosure requirements.

Ensure Effective Legislation and Regulations

When Senegal enacts legislation for an economy-wide BO reporting system, it should ensure that:

  • Information collection: The legislation allows for the collection of information about the beneficial owner, the declaring company, and the means through which ownership or control is held.
  • Online forms with clear guidance: Online forms are provided with clear guidance to facilitate compliance.
  • Limited information collection: Only limited information is collected to achieve the policy objective.
  • Full ownership chains: Collection of sufficient information to understand full ownership chains where relevant.

By implementing these recommendations, Senegal can improve the transparency and comprehensiveness of BO reporting, aligning it with international best practices and ensuring that beneficial ownership data can be used effectively for various purposes.