The Case for Beneficial Ownership Disclosure : A Discussion Paper on the Policy Frameworks Promoting Beneficial Ownership Transparency in Africa

Beneficial Ownership (BO) disclosure has been demanded by Civil Society Organizations (CSOs) in Africa. The tax justice movement has reiterated the need for an enhancement of transparency, and the UN has also recognized the impact of BO on the achievement of the Sustainable Development Goals (SDGs). This discussion paper aims to provide an overview of the policy frameworks promoting BO disclosure. It maintains a focus on the impact that a lack of transparency generates on the African continent. Finding an efficient way to render beneficial owners accountable is a necessary step to curb Illicit Financial Flows (IFFs), which have a massive effect on the ability to finance development and to gain independence from external aid. BO provisions are still at a nascent stage in African countries. The objective of this paper, therefore, was to examine the policy frameworks promoting BO in the continent in a bid to enable stakeholders to understand the policy context for them to engage in advocacy for BO. This paper underscores several impetuses for BO, including initiatives around anti-money laundering and counter-terrorism financing, for transparency within the extractives sector, for BO as an anti-abuse provision within Double Taxation Agreements (DTAs) and the phenomenon of de-risking. It documents the progress made in these efforts to support BO as a means of promoting an understanding of how African countries can pursue various policy frameworks to implement it. It follows from a previous paper produced by the Tax Justice Network (TJN) and the Tax Justice Network Africa (TJNA) on the State of Play of BO in Africa in 2020, which assessed the BO status of legal vehicles in 17 jurisdictions and reiterates the recommendations made then to promote BO transparency