Extracting Transparency: New Bill Creates Mandatory Reporting Standards For Canada’s Extractive Industries

INTRODUCTION

The Government of Canada recently introduced proposed legislation creating mandatory public reporting of payments to governments and government officials by the extractive sector. The proposed act, entitled the Extractive Sector Transparency Measures Act (ESTMA), is designed to further Canada's fight against corruption by enacting reporting obligations with respect to payments made to foreign and domestic governments (and government officials), eventually including aboriginal governments.

These proposed mandatory reporting requirements are in line with other countries implementing similar requirements, including the European Union and the United States. The EU has implemented a Transparency Directive, which contains provisions similar to the proposed ESTMA. The U.S. had initially implemented reporting standards through the Dodd-Frank Wall Street Reform and Consumer Protection Act, however, such provisions were struck down by the U.S. courts in 2013.