Beneficial Ownership Transparency Initiative Launched in Guyana to Combat Corruption
A global program aimed at advancing beneficial ownership transparency has been launched by the Extractive Industries Transparency Initiative (EITI) and Open Ownership, a non-profit organization. The project, called Opening Extractives, aims to make a significant difference in publicly available information on individuals who own and control extractive companies.
Why Beneficial Ownership Transparency Matters
Anonymous companies remain a major obstacle in the fight against money laundering and corruption, enabling corrupt and criminal actors to hide behind complex chains of companies registered in multiple jurisdictions. Publishing details of company ownership enables effective taxation and brings data to light that can be used to identify and address corruption.
Benefits of Beneficial Ownership Transparency
- Enables fairer markets
- Encourages responsible investment
- Manages business risk
Context: Guyana’s Oil Blocks
The launch comes at a time when transparency advocates are calling for more transparency in the award of two of Guyana’s lucrative oil blocks. The Kaieteur and Canje Blocks, with a total unproven prospect reserve of 12.11 billion barrels of oil, were awarded under less than transparent terms. Notably, two of the owners of the two blocks, JHI Associates and Ratio Petroleum, are incorporated in secrecy jurisdictions like the British Virgin Islands and Gibraltar.
Partnership and Funding
The initiative will be partly funded by the BHP Foundation, a leading global resources company, and delivered by the EITI International Secretariat and Open Ownership. According to EITI Executive Director Mark Robinson, this unique partnership has the potential to deliver a step change in natural resource governance.
Quotes from Key Stakeholders
- “Natural resources are ultimately owned by the citizens of every country in which the resources industry operates.” - James Ensor, BHP Foundation Chief Executive Officer and President
- “Anonymous companies are the getaway vehicle of choice for stolen public money, and beneficial ownership transparency is the most effective way to close this down.” - Thom Townsend, Executive Director of Open Ownership
Next Steps
The project will seek to mobilize political and stakeholder commitment and build technical capability required to publish and use complex data, with the potential to scale beyond the extractive sector and focus countries. The initiative aims to accelerate progress on beneficial ownership transparency and bring about a step change in natural resource governance.