Gibraltar’s Beneficial Ownership Registers Remain Unrestricted Amid Global Shift

Introduction

The Overseas Territories of Jersey, Guernsey, and the Isle of Man, as well as the British Virgin Islands and the Cayman Islands, have announced that they will not grant unrestricted public access to their beneficial ownership registers. This decision comes after a landmark EU court judgment in November 2022, which held that public disclosure of information on beneficial ownership registers would breach individuals’ rights to privacy.

Gibraltar: An Outlier

Gibraltar, however, remains an outlier, with its beneficial ownership register remaining publicly accessible. The UK and Gibraltar have been at the forefront of transparency efforts, with the UK’s “Persons with Significant Control” regime introduced in 2016.

EU Court Judgment and Global Response

The European Union’s Fifth Money Laundering Directive (5MLD) had envisaged public access to beneficial ownership registers across member states. However, following the EU court judgment, many Overseas Territories and Crown Dependencies have put plans for unrestricted public access on hold.

The Cayman Islands Finance Minister recently announced that the Beneficial Ownership Transparency Bill would not include public access provisions.
The BVI Government stated that access will be restricted to those who can demonstrate a legitimate interest in the information.

European Parliament’s Proposal

The European Parliament has approved a proposal for the Sixth Money Laundering Directive (6MLD), which is expected to include a legitimate interest test for public access to beneficial ownership registers. The European Commission must now address how this test will be defined and implemented, with potential implications for journalists, media organizations, and wealth creators.

Conclusion

As the debate surrounding beneficial ownership transparency continues, Gibraltar’s decision to maintain unrestricted public access to its register remains an exception in the face of a global shift towards more restrictive approaches. The outcome of the 6MLD negotiations will be closely watched as it seeks to balance competing interests and ensure that anti-money laundering efforts are effective while respecting individual rights to privacy.