The Papua New Guinea Extractive Industries Transparency Initiative (PNGEITI) convened a Beneficial Ownership (BO) Technical Working Group meeting, bringing together key stakeholders to discuss strategies for enhancing BO transparency within the extractive sector. Representatives from the Bank of Papua New Guinea’s Financial Analysis and Supervision Unit (FASU), the Investment Promotion Authority (IPA), the Mineral Resource Authority (MRA) and Department of Petroleum participated in the discussions aimed at accelerating efforts towards full implementation of BO disclosure for the extractive industries sector in PNG.
The meeting provided an opportunity to update stakeholders on the progress made so far in advancing BO transparency and to outline the next steps necessary to further strengthen governance and accountability in the extractive industry.
Significant progress has been made in PNG’s efforts to enhance BO transparency, dating back to the initial scoping study in 2017. The study identified key challenges, including legal gaps, lack of awareness, and data collection difficulties. Key milestones achieved since then include:
- Scoping Study and Roadmap Development (2017), this study assessed the state of BO transparency in PNG, leading to the development of a roadmap that outlined strategic steps for BO disclosure, including legal reforms, stakeholder engagement, and capacity building.
- Implementation Phase (2019), the roadmap was put into action, involving stakeholder consultations, capacity building, and the development of systems for BO data collection and management.
- BO Disclosure Report (2020), this report provided crucial insights into BO ownership in the extractive sector, highlighting both successes and challenges encountered in implementation.
- Amendment of the IPA Companies Act (2022), where a key milestone in PNG’s BO journey, this amendment introduced a mandatory BO disclosure requirement, strengthening regulatory frameworks and increasing transparency.
A critical issue raised during the meeting by FASU concerned the scope of BO disclosure under Anti-Money Laundering (AML) standards. While AML regulations mandate BO disclosure to competent authorities such as law enforcement agencies, PNGEITI’s Standard 2023 and Requirement 2.5 calls for public disclosure of BO information in the extractive industries sector. The discussion underscored the need for a clear boundary of public access to BO data while ensuring compliance with both national and international standards.
Investment Promotion Authority (IPA) representative, Mr. Maru, highlighted that the Amended Companies Act 2022, specifically Section 72(a), mandates companies to provide Beneficial Ownership (BO) information and identify the beneficial owners of shares. He further noted that the IPA serves as the custodian of BO data.
PNGEITI Director for Projects and Procurement, Mr. Diclah Taureka, emphasized the need for a standardized BO disclosure framework, stating, “To progress beneficial ownership disclosure in line with PNGEITI requirements, we are proposing the development of a contextualized BO disclosure reporting template, which will be refined in consultation with key stakeholders.”
Supporting this, PNGEITI Director of Policy and Programs, George Kauli, reinforced that while PNG adheres to EITI Global Standards, implementation strategies must be tailored to the local context. He stated, “What is practiced in Papua New Guinea may differ from other EITI-implementing countries. The Companies Act 2022 provides the legal foundation for BO disclosure across all companies operating in PNG. For PNGEITI purposes, our focus for 2025 is to develop a contextualized BO disclosure template specifically focused on extractive industries.”
To further advance Beneficial Ownership (BO) transparency, the Papua New Guinea Extractive Industries Transparency Initiative (PNGEITI) and key stakeholders have outlined priority actions for 2025. These initiatives include conducting comprehensive training sessions for government officials, companies, and other stakeholders on BO requirements, disclosure processes, and compliance measures. Additionally, PNGEITI will develop and distribute guidance documents to assist companies in fulfilling their BO disclosure obligations.
A nationwide awareness campaign will also be launched, utilizing television, radio, print media, and social media platforms to educate the public on the importance of BO transparency. Furthermore, PNGEITI will host public forums and town hall meetings to facilitate open discussions among civil society, industry associations, and government agencies. Lastly, ongoing support will be provided to companies to strengthen their capacity in meeting BO requirements effectively.
PNGEITI remains committed to fostering transparency, accountability, and good governance within the extractive sector. The outcomes of the BO Technical Working Group meeting reaffirm Papua New Guinea’s dedication to implementing global best practices in BO disclosure while ensuring alignment with local regulatory frameworks.
