Ownership Register Plans Criticised

The Crown Dependencies have been criticised for the lack of movement on a publicly open register of beneficial ownership.

Home Office minister Thomas Tugendhat has indicated that the Westminster gov is unimpressed with the latest steps taken by the Isle of Man, Guernsey and Jersey.

In 2019, the three islands committed to a public open register by the end of 2023, however a ruling by the Court of Justice of the European Union declared making the details of beneficial owners public illegal.

That earlier has therefore been watered down, with access to information now only due to be extended to:

• financial services business and certain other businesses (collectively described as obliged entities) who are required to conduct customer due diligence
• those media and civil society organisations who can demonstrate a legitimate interest in accessing the information in order to combat financial crime

A joint statement said: ‘Subject to necessary approvals in the Crown Dependencies’ legislatures, access for those with a legitimate interest will be provided in line with international obligations extended to the three islands, recognising that there is a crucial balance to strike between protecting human rights and combatting financial crime.

‘The Crown Dependencies will develop and deliver ‘legitimate interest’ access in a leading timeframe, taking into account international developments. Proposals to agree the definition of legitimate interest will be presented to the islands’ parliaments by Q4 of 2024 at the latest with implementation following in a reasonable timeframe afterwards.’

However, Mr Tugendhat, who stood to in the leadership election to replace Boris Johnson as PM, said that while the moves are in line with the CJEU, the UK gov remains ‘committed to publicly accessible registers becoming the global norm’.

He said: ‘The UK is satisfied with the lawfulness of our own publicly accessible registers and continues to believe that the CDs could legally implement public registers of their own.’

And added: ‘Given the original commitments were made in 2019, and the increasing use of finance to coordinate action against the interests of the British people and the wider British family, this is not the pace that I expect.

‘I urge the CDs to work as quickly as possible next year to implement these commitments. Parliament will wish to consider these commitments and closely monitor the situation.’

Meanwhile, Dame Margaret Hodge, a regular critic of the CDs and British Overseas Territories has said it is a matter of ‘national security’ that all of the jurisdictions have open registers.

While the UK does has an open register and talks of a global norm will be welcomed by some, its own register is far from perfect and open to corrupt practices.