Publicly Accessible Registers of Beneficial Ownership: Overseas Territories

David Rutley Excerpts

Monday 18th December 2023 Written Statements

[The Parliamentary Under-Secretary of State for Foreign, Commonwealth and Development Affairs (David Rutley)]

Illicit finance is an active and growing threat to the UK family, and can undermine our national security, prosperity and democracy. It is more important than ever that we work together to tackle the emerging challenges. Publicly accessible registers of beneficial ownership are an essential tool in the fight against illicit finance and corruption and provide substantial wider benefits to public trust in institutions and transparency in the business environment.

We welcomed the commitments made by all inhabited overseas territories to implement publicly accessible registers of beneficial ownership in line with the draft Order in Council issued in response to the Sanctions and Anti-Money Laundering Act 2018. In 2020, we set out in a written ministerial statement our expectation that the territories would implement registers by the end of 2023.

In November 2022, the Court of Justice of the European Union found that an EU requirement to implement publicly accessible registers was contrary to the EU charter of fundamental rights. This ruling does not apply to the UK or its overseas territories. However, several overseas territories have noted concerns about the legal implications of implementing a publicly accessible register of beneficial ownership if human rights provisions applicable to them were to be interpreted in a similar way. The UK remains satisfied with the lawfulness of our own register and the ability of territories to meet the requirements of the draft Order in Council.

Given our differing views on this ruling with several overseas territories, we have worked with them to find a way to make positive progress through the delivery of an interim step, which would involve the implementation of publicly accessible registers of beneficial ownership, with a legitimate interest access filter, next year. This would allow access to beneficial ownership information by members of the public who have a legitimate interest in doing so, including media and civil society organisations that are involved in the fight against illicit finance and money laundering.

Following intensive discussions with each of the overseas territories at the Joint Ministerial Council and across a series of bilateral conversations, we have made significant progress in the delivery of greater corporate transparency. I set out below the progress individual overseas territories expect to make over the next year to deliver against their commitments for greater corporate transparency. We will collectively review progress and discuss broader issues related to combating illicit finance with the overseas territories in March 2024 during the ministerial illicit finance dialogue.

The following territories have either already implemented a publicly accessible register of beneficial ownership or remain committed to delivering one as soon as possible in line with the parameters set out in the draft Order in Council. In recognition of the capacity constraints faced by these territories, the UK will continue to provide both technical and financial assistance.

Falkland Islands

The Government of the Falkland Islands are committed to having a full publicly accessible register of beneficial ownership, in line with the parameters set out in the draft Order in Council. Due to capacity issues, implementation is likely to be during the summer of 2024.

Gibraltar

The Government of Gibraltar successfully implemented a publicly accessible register of beneficial ownership in 2020.

Montserrat

The Government of Montserrat are committed to implementing a publicly accessible register of beneficial ownership, in line with the parameters set out in the draft Order in Council. Legislation is currently going through the Montserrat Legislative Assembly and has had its First Reading. It is expected to be passed in the new year and implemented during the summer of 2024.

Pitcairn Islands

The Government of the Pitcairn Islands are committed to implementing a publicly accessible register of beneficial ownership, in line with the parameters set out in the draft Order in Council. Due to capacity issues, implementation is likely to be during the summer of 2024.

St Helena

The Government of St Helena are committed to implementing a publicly accessible register of beneficial ownership, in line with the parameters set out in the draft Order in Council. The draft legislation is currently undergoing its final review with the intention for implementation in the first half of 2024.

The following territories have committed to strengthening their respective levels of corporate transparency through the delivery of publicly accessible registers of beneficial ownership with a legitimate interest access filter in 2024. The UK Government will provide technical assistance as required to expedite and support delivery.

Anguilla

The Government of Anguilla have committed to moving forward with the implementation of a publicly accessible register of beneficial ownership where a person or organisation/entity can access specific information by demonstrating a legitimate interest that is consistent with the constitutional framework. Anguilla aspires to having this register operational by the end of 2024.

Cayman Islands

The Government of Cayman Islands are committed to implementing a publicly accessible register of beneficial ownership with a legitimate interest access filter no later than Q4 2024. This will include access to parties seeking to prevent or combat money laundering and terrorist financing, for instance media and civil society organisations under specific circumstances.

Turks and Caicos Islands

The Government of Turks and Caicos Islands are committed to implementing a publicly accessible register of beneficial ownership with a legitimate interest access filter by Q4 2024. This will include access for media and civil society organisations with a legitimate interest.

The following territories have set out a commitment to delivering greater corporate transparency contingent on external developments. As a result, the parameters of their proposed registers, and the precise timelines associated with implementation, remain unclear. The UK maintains that the overseas territories should deliver greater corporate transparency, independently of action being taken in the European Union or other jurisdictions. The UK Government continue engagement with these territories in order to confirm that they will enable access at least to those with a legitimate interest, such as media and civil society organisations, and as soon as possible. The UK will make available technical assistance to expedite delivery.

British Virgin Islands

The British Virgin Islands Government have confirmed that they will implement a publicly accessible register of beneficial ownership consistent with the standards to be identified in the implementation review of the European Union’s fifth anti-money laundering directive. This directive does not apply to the overseas territories, Crown dependencies or the United Kingdom. The British Virgin Islands Government anticipate that the introduction of appropriate frameworks will occur in Q4 2024, but no later than Q2 2025.

Bermuda

The Government of Bermuda expressed their own commitment to make their register of beneficial ownership information accessible to the public within 12 months of the publication of the implementation review of the European Union’s fifth anti-money laundering directive. This directive does not apply to the overseas territories, Crown dependencies or the United Kingdom.

The UK Government welcome the continued co-operation of overseas territory Governments in this matter. Our long-standing commitments to meet the highest standards in beneficial ownership transparency set out our collective desire to be at the forefront of the fight against illicit finance. The commitments outlined above will represent a significant step forward in the overseas territories delivering their commitments to improve corporate transparency. We expect this interim step to be a part of the journey towards the implementation of fully publicly accessible registers of beneficial ownership in due course. The UK Government remain committed to publicly accessible registers becoming the global norm.

[HCWS150]