24 LEXPERT
|
2015/16
|
WWW.LEXPERT.CA
PHOTO:
SHUTTERSTOCK
Transparency
Requirements Get Teeth
THE EXTRACTIVE SECTOR Transparency Measures Act (ES-
TMA), proclaimed in force on June 1, 2015, has been widely lauded
for finally bringing Canada up to speed with the European Union,
the United Kingdom, Norway and the United States in promoting
transparency and accountability in the extractive sector by requiring
mandatory reporting of payments made to any government or body
performing a governmental function in Canada or abroad.
e global trend has seen the US Securities and Exchange Com-
mission developing mandatory reporting requirements for the ex-
tractive sector, expected to come into force in spring 2016 pursuant
to the Dodd-Frank Wall Street Reform and Consumer Protection Act.
e EU has established standards in place by way of its Accounting
and Transparency Directives, and the UK has enacted e Reports
on Payments to Government Regulation 2014, which applies to pay-
ments made to governments on or aer January 1, 2015.
Although Canada's late to the party, however, there's no doubting
the ESTMA's impact.
"With about 75 per cent of all mining companies in the world
headquartered in Canada and some 56 per cent of the publicly
traded ones listed on the Toronto Stock Exchange, our laws capture
New requirements to report payments made to governments
mean Canada has caught up to global trends by Julius Melnitzer
PAYMENT REPORTING
