Hereafter disclosure of beneficial owners of metal mining companies is a mandatory legislative requirement
Today, on April 23, in the second reading the National Assembly voted and adopted a package of draft amendments to the “Code of the Republic of Armenia about the Subsoil”, Law on the “State Registration of Legal Entities, Separate Divisions of Legal Entities, State Registration of Companies and Individual Entrepreneurs” and Law on the “Public Service”, by which the whole process of disclosure of beneficial owners of metal mining companies shall be regulated.
According to the draft law on making amendments to the RA Law on “State Registration of Legal Entities, Separate Divisions of Legal Entities, State Registration of Companies and Individual Entrepreneurs”, the definition of beneficial owners and politically exposed persons has been given. In order to make the verification process more effective, by the draft law on “Public Service” the scope of those, who have political exposure , has been identified to the scope of those who have the obligation to submit a declaration of interests, as well as their family members.
The laws outline the scope of the information to be published in the Unified Registry of Legal Entities. The procedure of submission of beneficial owners’ declaration, time frames of registering a beneficial owner and making changes in the registration has also been regulated.
The RA Law on “Public Service” prescribes that the declarant has the obligation to submit a declaration of interest regardless of the share of the legal entity.
“The Code of the Republic of Armenia about Subsoil” was amended by requirement to submit a certificate of disclosure of information on beneficial owners and on changes in beneficial ownership to the authorized body. Also provisions for suspension and termination of subsoil usage rights were established. Provisions for disclosure of beneficial owners are applicable also for legal entities undertaking geological studies in Armenia.
Thus, the adopted laws will lead to the establishment of comprehensive sectoral regulatory frameworks, as well as will contribute to introduction of the disclosure mechanisms of beneficial owners.
The process of disclosure of beneficial owners in Armenia has started in the framework of the Extractive Industries Transparency Initiative (EITI). The EITI standard requires that the EITI member states publicly register the beneficial owners of the extractive industries as of January 1, 2020.
The Extractive Industries Transparency Initiative (EITI) is a global standard that promotes open and accountable management of natural resources. Its goal is to create more transparent and accountable state and business systems, as well as to promote public dialogue, thereby ensuring mutual understanding between the stakeholders.
The Republic of Armenia is considered a candidate country for the EITI since March 2017. In January 2019 the first National Report of Armenia was published.