Gibraltar’s Beneficial Ownership Registers Face Uncertain Future Amid Global Shift

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The future of publicly accessible registers of beneficial ownership in Gibraltar is shrouded in uncertainty, with the territory potentially caught between emerging global standards and ongoing constitutional tensions.

Background: The Court of Justice of the European Union (CJEU) Ruling

In December 2023, the CJEU ruled that full public access to beneficial ownership information infringed on the right to respect for private life and protection of personal data. This landmark ruling has sparked a global shift in the approach to beneficial ownership transparency.

Key Points from the CJEU Ruling:

• Full public access to beneficial ownership information is not compatible with EU standards on data protection
• The right to respect for private life and protection of personal data must be balanced against the need for transparency

Gibraltar’s Register of Ultimate Beneficial Owners: A Complex Situation

Gibraltar had previously established a Register of Ultimate Beneficial Owners, Nominators and Appointors via the UBO Regulations 2017. However, Chief Minister Fabian Picardo protested against the UK’s Sanctions and Anti-Money Laundering Act (SAMLA), which required Overseas Territories to establish publicly accessible registers.

Key Developments:

• Gibraltar’s Register of Ultimate Beneficial Owners is not currently publicly accessible
• The territory is closely aligned with EU standards on data protection, raising concerns about its ability to reconcile existing registers with emerging global norms

Ongoing Constitutional Tensions and the Risk of a Constitutional Challenge

The UK government has prepared a draft Order in Council, setting 31 December 2023 as the deadline for implementation of publicly accessible registers in BVI and Cayman. However, the territories have pushed back against this requirement, citing concerns about constitutional overreach and the potential impact on their finance centers.

Key Points:

• The UK government’s deadline for implementation of publicly accessible registers may not be feasible
• A constitutional challenge to Gibraltar’s UBO Regulations could be on the horizon

Conclusion: Implications for Gibraltar’s Finance Center and Relationship with the UK

The outcome of this saga will have significant implications for Gibraltar’s finance center and its relationship with the UK. As the territory navigates these challenges, it must balance competing interests and adapt to emerging global standards on beneficial ownership transparency.