Enrollment opened under the Extractive Sector Transparency Measures Act

  • Canada Image

May 02, 2016

On May 2, 2016, Natural Resources Canada (NRCAN) has opened the enrollment process for companies who meet the definition of a “Reporting Entity” under the Extractive Sector Transparency Measures Act (ESTMA).

The stated purpose of ESTMA is to foster better transparency to ensure that resource extractive industries support proper development in the countries where they operate, while at the same time making it harder to conceal illicit payments.

A “Reporting Entity” under ESTMA refers to a corporation or other type of business enterprise engaged in the commercial development of oil, gas or minerals, which is also: (i) listed on a stock exchange in Canada; or (ii) has a place of business, does business or has assets in Canada and, for at least one of its two most recent financial years, meets at least two of the three thresholds below: (a) has at least C$20 million in assets; (b) has at least C$40 million in revenue; (c) employs an average of at least 250 employees.

Enrollment is not required until the initial ESTMA reports are due; however, NRCAN is encouraging early enrolment. Annual reports under ESTMA are due 150 days after a Reporting Entity’s financial year end, beginning with financial years commencing after June 1, 2015. As an example, companies with a December 31 year-end will be required to submit their first annual report by May 30, 2017. Reporting of payments made to aboriginal governments or entities is deferred for a two-year period until June 1, 2017.

Reporting Entities can enrol by downloading a reporting entity contact form which must be completed and submitted prior to submitting an ESTMA report. Upon enrollment, Reporting Entities will receive an ID Number and notification of new information published on NRCAN’s website.

For fur­ther de­tails, see the NRCAN website.

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.