Payment Disclosure Now In Force: What Extractives Need To Know

Canada's new regime for the mandatory reporting of payments to government, the Extractive Sector Transparency Measures Act (ESTMA), came into force on June 1, 2015. Companies must begin reporting under ESTMA in their first full financial year after June 1, 2015.

ESTMA contains broad reporting obligations with respect to payments to governments and state-owned entities, including employees and public office holders, made by oil, gas and mining companies. It is intended to supplement anti-corruption measures enshrined in the Corruption of Foreign Public Officials Act (CFPOA) and the Criminal Code. The Canadian government has also noted that the purpose of these new standards is to improve transparency within the industry and to achieve alignment with similar measures set out in the EU Accounting and Transparency Directives (Transparency Directive) and the U.S. Dodd-Frank Wall Street Reform and Consumer Protection Act.