Transparency International Canada calls on Ottawa to introduce a public registry of Canadian registered companies
Tracking beneficial ownership would reduce tax evasion and money laundering
Toronto, Ont. (May 9, 2016) – On the eve of the global anti-corruption summit, which will take place in London on May 12th, Transparency International Canada calls upon the Government of Canada to commit to the establishment of a mandatory public registry of all companies and trusts registered in Canada. This registry will shed light on the legal and effective owners of Canadian registered companies.
Public registers of beneficial ownership allow ill-gotten gains to be more easily traced, making it more difficult and less attractive for people to benefit from the proceeds of crime. They also make it easier for financial institutions and law enforcement officials, amongst others, to quickly, and without additional cost, ascertain information about the legal and effective owners of companies and trusts.
“The reportedly leaked documents from a Panamanian based law firm, colloquially described as the “Panama Papers, highlight a broader issue of the global financial system being abused for illicit purposes such as tax evasion and money laundering,” said Peter Dent, Chair and President of Transparency International Canada. “There is a pressing need for the Government of Canada to take concrete steps to address the ability of some Canadians to shield themselves, and their financial activities, from Canadian authorities.”
“That some can rig the system to hide their wealth, whether amassed legally or not, is not merely unjust; it also masks corruption and harms global development by siphoning off revenues that could be directed to education, health care and infrastructure,” he added.
Despite repeated promises to address company secrecy, made in international forums a recent evaluation of the beneficial ownership transparency legal framework of different G20 member states by Transparency International ranked Canada as having a ‘weak framework.’ This is in contrast to the UK, which was ranked ‘very strong.’
Offshore banking is not in itself illegal, and those named should not be presumed to have done anything wrong. However, secrecy attracts those with something to hide, making beneficial ownership transparency an issue of global importance. The Government of Canada has committed itself to combat the flow of proceeds of foreign corruption into Canada. Creating a public registry system would be a necessary step to uphold such a commitment.
TI Canada urges the Government of Canada to work with provinces to ensure similar legislation is passed in all jurisdictions, in order to create the much needed, effective registration system.
For more information, please contact:
Alesia Nahirny, TI Canada Executive Director
Tel : 416.488.3939
Email: ti-can@transparency.ca