Overseas Territories Joint Ministerial Council

Catherine West Excerpts

Thursday 3rd December 2015 Commons Chamber

[Catherine West (Hornsey and Wood Green) (Lab)]

Only last week, Mr Speaker, you told the House that we should be doing more to celebrate the progress being made by the overseas territories on transparency of the affairs of companies based in those territories. I will welcome progress where progress is made. The hon. Member for Foyle (Mark Durkan) mentioned Montserrat in particular, which should be commended for introducing a public register for its small financial sector. It is also commendable that the overseas territories have been leading the way with the commitment to automatic exchange of information.

However, we all know that there is much more room for improvement. Most developing countries remain outside these new commitments to exchange information, and there is much more that the UK and the territories can do to help bring them in. A clear commitment to providing information to developing countries on a temporary, non-reciprocal basis would help, as would producing statistics on the source of assets in our financial institutions. That would genuinely be something to celebrate. All the world’s major financial centres have agreed to the same standards as the overseas territories on information exchange, as the G20 has made clear. It is the new global standard, and we should expect nothing less.

On company ownership transparency, we will celebrate when the UK Government commit to supporting Montserrat in making access to its register free, online and in open data format, and when we see such public registers implemented across the rest of the overseas territories. Anguilla, Turks and Caicos Islands, Bermuda, the Cayman Islands, the British Virgin Islands: none is inclined to change its position at all, despite even the Prime Minister watering down his demands. Instead of demanding public registers, as the Prime Minister once advocated, the Department devised three tests for the territories’ regimes to meet: first, access to company ownership information without restriction; secondly, an ability quickly to identify all companies that a particular person has a stake in; and thirdly, a requirement that neither the companies nor their owners are tipped off. All those are good things, but they are the minimum that should be done. The Government are responsible for good governance in the territories, not for a minimal standard of governance. There is a real lack of ambition on this crucial question.

As the events of this year’s council have shown, there is some disappointment. The Financial Times reported this week that the Cayman Islands have flatly refused the UK’s request to give law enforcement agencies access to beneficial ownership information, arguing that such a basic measure as allowing investigators to trace the proceeds of corruption poses a “competitive disadvantage”. The Prime Minister has called on the territories to act since 2013. Surely it is now clear that his Government need to redouble their efforts to bring standards up to scratch.

In fiscally difficult times at home, the overseas territories, as leaders in international finance, should have world-leading standards, not be world leaders in enabling corruption and tax evasion. My party made a manifesto commitment to require the overseas territories to produce publicly available registers of the real owners of companies based there. When will the Government match our, and indeed the general public’s, ambition in this regard?