Bermuda Set to Make Beneficial Ownership Register Publicly Accessible

The Government of Bermuda has announced plans to make the companies’ central register of beneficial ownership information available to the public, raising concerns over data protection and security.

Background

• The register currently contains sensitive information on company owners, including names, addresses, passport numbers, dates of birth, and percentage of shareholding.
• The register is only accessible by authorized government entities and law enforcement agencies, in line with international corporate transparency guidelines set out by the Financial Action Task Force (FATF) and the Organisation for Economic Co-operation and Development (OECD).

Government’s Stance

• The Bermuda Government has stated that granting public access to the register will aid in the prevention and detection of domestic and cross-border crime.
• The government plans to present proposals to establish public access to the register within 12 months of the European Union’s 5th Anti-Money Laundering Directive coming into effect, which is expected to take place in January 2022.

Risks Associated with Public Access

• Critics have raised concerns over the potential risks of making such sensitive information publicly available.
• With the rise of data breaches and cybercrime, there are fears that the register could become a prime target for hackers and fraudsters seeking to exploit thousands of individuals’ personal details.

Key Points

• Approximately 15,000 registered companies in Bermuda will have their beneficial ownership information made publicly accessible.
• The register is expected to become publicly accessible at some point during 2022.
• Proposals to establish public access to the register will be presented to the Legislature within 12 months of the European Union’s 5th Anti-Money Laundering Directive coming into effect.