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Beneficial Ownership Definition Takes Center Stage in Trinidad and Tobago’s Extractive Industry
In an effort to boost corporate trust and promote transparency, Trinidad and Tobago has introduced a beneficial ownership register for oil, gas, and mining companies operating in the country. This move aims to shed light on who ultimately owns and controls these extractive entities, thereby deterring money laundering, terrorist financing, and other forms of corruption.
What is Beneficial Ownership?
According to the Companies (Amendment) Act of 2019, beneficial owners are defined as living individuals who:
- Directly or indirectly own a company
- Control at least 10% of its shares or total votes
This definition excludes nominees, intermediaries, custodians, or agents acting on behalf of another person.
Politically Exposed Persons (PEPs) Must be Disclosed
The beneficial ownership register also requires the disclosure of PEPs, which include:
- Foreign and local political figures
- Immediate family members and close associates
Significance of the Extractive Industry in Trinidad and Tobago
The extractive industry is a significant contributor to Trinidad and Tobago’s economy, with major players like Shell, F.W. Hickson, and BP Trinidad and Tobago operating in the sector.
Why Transparency Matters
Transparency has long been a concern in the extractive industry, with critics arguing that opaque ownership structures facilitate corruption and money laundering. By making beneficial ownership information publicly available, the government aims to promote accountability and trust among stakeholders, including law enforcement agencies, regulators, competing businesses, the media, and the general public.
Expert Insights
- “Transparency is essential in the extractive industry, particularly when it comes to beneficial ownership. It helps to prevent corrupt practices and ensures that companies are held accountable for their actions.” - Expert 1
- “The pandemic has accelerated the importance of transparency in the extractive industry. It’s essential that companies operate with integrity and disclose their beneficial ownership information to maintain public trust.” - Expert 2
Setting a Precedent
With the introduction of the beneficial ownership register, Trinidad and Tobago is setting a precedent for other countries to follow, emphasizing the importance of transparency and accountability in the extractive industry.
Conclusion
The beneficial ownership definition in Trinidad and Tobago’s extractive industry is a critical step towards promoting corporate trust and preventing corruption. By shedding light on who ultimately owns and controls these companies, the government aims to create a more transparent and accountable environment for all stakeholders involved.