Anti Money Laundering Directive: Register of People with Significant Control

Margot James Excerpts

Monday 26th June 2017 Written Statements

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Margot James)]

On Friday, I laid before Parliament two sets of regulations that modify the existing national measures to implement the UK’s transposition of Article 30 of the EU Fourth Anti-Money Laundering Directive. These regulations are made under powers under section 2(2) of the European Communities Act.

The regulations modify and extend the UK regime for a public register of information about people with significant control over UK companies and limited liability partnerships (LLPs). The register is a core element of the UK’s drive to improve corporate transparency. This statement, the regulations and the guidance have been informed by responses received to the discussion paper “Implementing the Fourth Money Laundering Directive: transposition of Article 30: beneficial ownership of corporate and other legal entities” [1].

Specifically, the regulations:

modify the existing national measures in relation to the legal entities covered (companies, LLPs and SEs) by requiring information to be updated on the register within a prescribed timescale

extend the amended measures to unregistered companies and listed companies on UK secondary markets

apply a modified form of the regime to limited partnerships governed by the law of Scotland and to qualifying general partnerships governed by the law of Scotland, collectively known as “eligible Scottish partnerships”

amend the provisions on circumstances in which information not shown on the public register may be accessed.

Transposition is not required in relation to limited or general partnerships registered or formed under the law applicable elsewhere in the United Kingdom, in view of the distinct, legal status of Scottish partnerships in section 4 of the Partnership Act 1890.

I have also issued and published, in draft, updated statutory guidance on the meaning of significant influence or control in the context of companies, for the register of people with significant control. This is required by paragraph 24 of Schedule 1A of the Companies Act 2006, and is subject to negative resolution by either House.

The term “significant influence or control” is included in the fourth and fifth specified conditions for being a person with significant control. The statutory guidance is required to explain how that term should be interpreted.

I have also published guidance on the meaning of significant influence or control in the context of eligible Scottish partnerships and have updated guidance on the regime for all legal entities in scope and for people who might become a person of significant control over them.

[1] https://www.gov.uk/government/consultations/implementing-the-fourth-money-laundering-directive-beneficial-ownership-register.

[HCWS7]