Gibraltar Strengthens Beneficial Ownership Requirements

In a significant move towards boosting transparency and combating financial crime, Gibraltar has strengthened its beneficial ownership requirements to align with the UK’s strict standards.

Background on the Agreement

On 19 April 2016, an exchange of notes and technical protocol was signed between the Gibraltarian government and the UK. This agreement aims to establish a central register containing accurate information about the beneficial owners of corporate entities incorporated in Gibraltar.

Key Provisions of the Agreement

• The Gibraltarian government will maintain a central register with accurate information on the beneficial owners of corporate entities.
• Law enforcement and tax authorities in Gibraltar will have unrestricted access to this information, facilitating cooperation with their UK counterparts.

Context within the UK’s Efforts

This move is part of a broader effort by the UK government to promote transparency and accountability in its overseas territories. In February 2016, Prime Minister David Cameron wrote to leaders of the Overseas Territories outlining plans to establish public registers of beneficial ownership for companies operating within their jurisdictions.

Benefits of Increased Transparency

• The introduction of this new requirement will enable authorities to identify and track individuals who ultimately own or control corporate entities.
• This increased transparency is expected to contribute to a more stable business environment and enhance Gibraltar’s reputation as a secure and trustworthy location for international companies.
• It will also help prevent money laundering and other forms of financial crime.

Implementation Timeline

The new beneficial ownership requirements in Gibraltar come into force on 19 April 2016, marking an important milestone in the territory’s efforts to strengthen its regulatory framework and comply with international standards.