CIPA set to unveil ‘hidden investor’ database
Pauline Dikuelo | Monday March 17, 2025 10:57
The Online Business Registration System (OBRS) will be taken down from March 11 to 18, as part of the upgrading to the new system.
Senior CIPA officials told BusinessWeek that besides the eagerly anticipated changes around beneficial owners, the new OBRS will introduce enhanced features aimed at improving transparency, ensuring compliance, and strengthening the fight against financial crimes such as money laundering.
A beneficial owner of a company enjoys the benefits or proceeds of a company or controls a company without being on record as the official owner. Global research has shown that having anonymous or hidden investors or owners of companies fosters illicit practices such as tax evasion, criminality, fronting, anti-competitive behaviour and others, as such investors conceal themselves behind legitimate boards, directors, and share registries.
CIPA officials said after updating, the new OBRS will also boast a new watch list feature allowing users to monitor specific companies and receive notifications when any changes are made.
CIPA acting director, Compliance and Enforcement, Washington Phale, told BusinessWeek that OBRS amendments have been evolving over the recent years. He said in 2019, amendments were introduced after it was noted that the measures surrounding beneficial ownership were not punitive enough.
Further amendments in 2022 introduced additional concepts related to beneficial ownership such as the roles of the nominator and nominee whilst also clarifying the nature of the beneficial owner's association.
'These revisions were part of the requirements aimed at removing Botswana from the greylisting as we are due for another assessment in 2027,' he said.
The upgraded system will also include enhanced requirements for beneficial ownership disclosure, making it easier to identify the true controllers of companies. This information will be freely accessible to the public on the CIPA website.
The latest OBRS amendments were tabled in Parliament in December and signed in January, paving the way for the transformative changes. Previously, the absence of a requirement for company constitutions made it difficult for banks to identify controlling powers in companies when conducting due diligence.
To address this gap, CIPA has developed a standard template for companies to use. Businesses will have 12 months to comply with this requirement, with any failures resulting in deregistration.
The introduction of mandatory company constitutions is seen as a crucial step in strengthening governance.
The OBRS was first introduced in 2021 as part of the government’s broader strategy to curb money laundering whilst improving the ease of doing business in Botswana. The system provides free public access to company information, including shareholders, promoting transparency in business dealings.
During the transition period, approximately 117,000 companies were removed from the CIPA register after failing to re-register online.
CIPA’s Head of Legal Pego Aisam said work has begun on collecting information whilst ensuring compliance with data protection laws. She emphasised that the upgraded system will help unmask the real controllers of companies.
In cases where beneficial ownership cannot be identified, senior management officials will be required to provide proof of their positions.
CIPA is also working closely with banks and procurement officers to use the system to verify company information before awarding tenders. The authority has signed Memorandums of Understanding with two banks so far and is negotiating with others to help track financial transactions.
Aisam highlighted that there have been instances where the recipient's bank details do not match CIPA’s records. Moving forward, banks will be required to report such discrepancies to CIPA for further assessment and necessary action.