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Is Your Business Complying with
the Canadian Extractive Sector
Transparency Measures Act?
By Jean Phillipe Buteau ( jean-philippe.buteau@nortonrosefulbright.com); Janne Duncan
( janne.duncan@nortonrosefulbright.com); Amar Leclair-Ghosh ( amar.leclair-ghosh@nortonrosefulbright.com);
and Roger F. Smith ( roger.smith@nortonrosefulbright.com), Norton Rose Fulbright
The Canadian Extractive Sector Transparency Measures Act1 (the Act) came
into force on June 1, 2015. The purpose
of this legislation is to implement Canada’s international commitments to fight
corruption in the extractive industries.
It applies to certain Canadian businesses
and their subsidiaries engaged in the
commercial development of oil, gas, or
minerals in Canada and abroad. The Act
is different from anti-bribery legislation
in that it creates disclosure obligations,
rather than prohibiting specific payments and imposing criminal sanctions.
Disclosure requirements
As outlined in our previous legal up-
date, the Act imposes annual reporting
obligations on certain businesses that:
• are publicly listed in Canada; or have
• a place of business in Canada, do
business in Canada or have assets in
Canada and meet at least two of the
following conditions for at least one of
their two most recent financial years:
• CAD$20 million in assets;
• CAD$40 million in revenue; and/or
• employ an average of at least 250
employees.
Now that the Act is in force,
Canadian businesses must begin
collecting information on certain
categories of payments made to
domestic and foreign governments
(and related bodies), whether they are
monetary or in-kind payments, over
CAD$100,000 starting on the first day
of their financial year. For example,
companies with a financial year-end
of December 31 will need to collect
this information for the reporting
period between January 1, 2016, and
December 31, 2016. A series of related
1 Is Your Business Complying with the
Canadian Extractive Sector Transparency
Measures Act?
By Jean Phillipe Buteau, Janne Duncan,
Amar Leclair-Ghosh, and Roger F. Smith
5 Government of Canada Amends
Integrity Regime: Less Debarment,
but More Suspension
By Stephen Nattrass