The document discusses beneficial ownership transparency rules globally and in Canada, presented by James Cohen of Transparency International Canada. It outlines Canada's commitments and shortcomings in adopting beneficial ownership regulations and the importance of establishing a public registry to combat corruption. The document also details ongoing initiatives, updates from various jurisdictions, and ways for individuals and organizations to support TI Canada's efforts against corruption.

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Beneficial Ownership Rules:
Global and Canada Perspective
Presented by: Transparency International Canada
February 2020

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About our Presenter
James Cohen is Executive Director of Transparency International Canada. He is
an anti-corruption expert with a background in international development and
security.
James’ previous work includes program design and management, training, and
research for organizations including the United States Institute of Peace, the
African Centre for Justice and Peace Studies, the Global Organization for
Parliamentarians Against Corruption, and the Geneva Centre for the Democratic
Control of Armed Forces.
James also worked for Transparency International’s Defence and Security
Programme from 2011-2013 where he focused on corruption risk to military, police,
and peacekeeping, as well as advising governments and civil society. James joined
TI Canada in 2016 as Interim-Executive Director, and held the post of Director,
Programmes and Engagement before becoming Executive Director where he now
oversees the organization’s management, programming, and external relations.
James holds a Masters from the Graduate Institute of International and
Development Studies, Geneva and a Bachelor of Social Science in Political
Science from the University of Ottawa.
James Cohen

3. We are the Canadian Chapter of the
world’s leading non-governmental
anti-corruption organization,
Transparency International
James Cohen, Executive Director
February 27, 2020

4. Agenda
About TI Canada
Status of Beneficial Ownership Transparency
TI Canada and Beneficial Ownership
Transparency
Q&A

5. ABOUT TI CANADA

6. TI provides practical methods and information to reduce corruption
Raise Canadians’ understanding of the nature and effects of corruption
Identify corruption trends and anti-corruption responses
Position TIC as an anti-corruption clearing house
Strengthen TIC’s capacity to support anti-corruption actions throughout Canada
Reduce “white collar” corruption and crime in Canada,
internationally
Strengthen anti-corruption legislation and mechanisms
Expand government relationships
Inform Canadians on many forms of corruption and harm it causes
Work to advance the global movement
What We Do:
Priorities:

10. STATUS OF BENEFICIAL
OWNERSHIP TRANSPARENCY

11. Shell Companies

12. U.S. Update
Beneficial Ownership Registry
2019 House – Corporate Transparency Act
2020 Senate – ILLICT CASH Act
White House endorsement
Geographic Targeting Orders

13. EU Update
EU AMLD4 (2015)
Collection of BO info and creation of national BO registries
Obliged entities must report inconsistencies
Implementation by June 2017
EU AMLD5 (2018)
Public disclosure of BO info for companies (but not trusts)
Implementation by January 2020

14. UK Update
UK PSC register (2016)
First publicly available BO registry, in open data format
Still no independent verification
UK beneficial ownership initiatives
Draft real estate law
Crown dependencies
Unexplained Wealth Orders

15. Other Jurisdictions
Extractive Industries Transparency Initiative
Requirement 2.5 (2016)
By 2020, all implementing countries have to ensure that all
extractives companies that apply for, or hold a participating
interest in an exploration or production extractive license or
contract in their countries publish the names of their real owners.
Any politically exposed persons holding ownership in oil, gas and
mining projects must be publicly identified.

16. Canada: Commitments, Performance
Founding member of FATF
Mutual evaluation in 2016
Non-compliant with FATF Recommendations 24/25, low
effectiveness on legal persons and arrangements

17. Canada: Beneficial Ownership Recap
Signatory to G20’s 10 High-Level Principles on Beneficial Ownership
‘Weak’ or ‘Very Weak’ on 8 of 10 principles. None addressed fully.

18. Canada: Regulatory Framework
Proceeds of Crime (Money Laundering) and Terrorist Financing Act
Financial institutions, securities dealers, life insurance and MSBs must
record beneficial ownership information and take ‘reasonable measures’
to confirm its accuracy
25% threshold for ownership or control
Obtained by official documentation OR attestation
‘Reasonable measures’ include taking client’s word for it (in writing)
If unable to identify or confirm beneficial owners, obliged entities must:
Identify most senior managing officer
Treat client as high risk (e.g. conduct ongoing monitoring)
No beneficial ownership obligations for DNFBPs

19. Canada: Recent Developments
Finance Ministers Meetings
CBCA mirroring amendments
Public Consultations
Federal Government – Until March 2020
Quebec – December 2019
British Columbia – Until March 2020
British Columbia
Land Ownership Transparency Act
Peter German ‘Dirty Money’ and Real Estate Expert Panel reports

20. Canada: Recent Developments
PCMLTFA review
Registry
Limited access
Include trusts
Sanctions and follow up
Bring Lawyers in line with PCMLTFA
DNFB reporting requirements
FINTRAC data sharing
Improve AML investigations
Regulate nominees
Punish improper intermediaries

21. TI CANADA AND BENEFICIAL
OWNERSHIP TRANSPARENCY

24. TI Canada
Beneficial Ownership – Ongoing Work
Company registration
Verification
Nominees
Trustees
Real estate
Enforcement/Sanctions

25. Why a Public Registry?
Deterrent effect
Extra eyes
Open for global finance, open
for global scrutiny
Independent monitoring
Global standard
Good for business

26. Public Registry: Good for Business
Increase due diligence for SMEs
Decrease forms to financial institutions
Cut due diligence costs for financial institutions

27. Components of a Public Registry
Unique identifiers
Full legal name
Partial date of birth
Service or correspondence address
Country of tax residency
Nature and extent of interest held
Citizenship
Politically Exposed Person and Head of an International
Organization status (publicly accessible or available only to
law enforcement)

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29. How to Support TI Canada:
Become a Supporter
TI Canada’s support from professionals and corporations is essential for us to continue to conduct
research, raise awareness, develop publicly available materials, and hold Business Roundtables.
Please visit our website at transparencycanada.ca for more information on becoming a supporter.
Become a Member
Help to make a difference in countering corruption in Canadian and global markets. Membership
includes full participation and voting privileges at all meetings of members; access to TI Canada
and TI newsletters, indices and other documentation; and participation in TI Canada conferences
and workshops on a cost recovery basis.
Make a Donation
Online donations to TI Canada, a Canadian Registered Charity, may be made securely and
conveniently by credit card or bank transfer through PayPal. Please visit transparencycanada.ca
and click on the “Donate” button to make your donation.

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31. Beneficial Ownership Rules:
Global and Canada Perspective