Operational Costs of MSG and Secretariat in Existing Registries

A recent report has shed light on the operational costs associated with the Multi-Stakeholder Group (MSG) and Secretariat, which are funded by the government. The report aims to identify a suitable mechanism for companies to collect and register data in beneficial ownership declarations prior to data collection.

Objectives

The report’s key objectives include:

• Determining how to reflect changes in ownership over time, once a baseline has been established (data timeliness)
• Identifying the most appropriate time for collecting beneficial ownership information, taking into account various practices such as registration, license signing, and submission of regular annual reports

Data Collection and Accessibility

The report highlights the importance of collecting data and making it accessible. The MSG has selected types of companies that will be required to participate in beneficial ownership reporting, including:

• Licensed exploration and production companies
• Transportation, processing, and marketing companies
• Sub-contractors of production companies
• Companies investing in oil, gas, and mining companies

Extractives Companies and Beneficial Ownership Reporting

The report notes that the MSG aims to produce a list of extractives companies which must take part in reporting of beneficial ownership, based on materiality thresholds or other requirements that are important to the state. The report also suggests studying existing lists of beneficiaries, registers, and available information to identify persons with significant control (PEPs) and determine their participatory interest in mining companies.

Data Publication and Existing Registries

The report emphasizes the need for greater access to data on beneficial ownership through its publication in electronic format, with due account for restrictions imposed by law. The preference is to make use of the infrastructure of existing public registries, such as that of the Global Mining Database (GMD).

Capacity Building and Technical Assistance

The report also highlights the importance of capacity building and technical and financial assistance. It aims to:

• Identify capacity building and awareness needs
• Design an awareness-raising campaign and capacity-building program
• Identify funding for the implementation of the roadmap and further funding for the implementation of beneficial ownership requirements on an ongoing basis

Conclusion

The operational costs associated with the MSG and Secretariat in existing registries are significant, but necessary to ensure transparency and accountability in the extractive industry.