UK Governments Draft Order Aims to Establish Publicly Accessible Registers of Company Beneficial Ownership

Increasing Transparency and Combating Financial Crime

The British government has drafted an order in council aimed at establishing publicly accessible registers of company beneficial ownership in its overseas territories. This move is part of a broader effort to increase transparency and combat financial crime.

Proposed Order Requirements

Under the proposed order, British Overseas Territories (OTs) would be required to establish publicly accessible registers of company beneficial ownership by the end of 2020. The register would need to include information such as:

• Name
• Country of residence
• Nationality
• Month and year of birth
• A minimum definition of “beneficial ownership” that encompasses both direct and indirect control over companies

Framework for Development and Compliance

The draft order sets out a framework for Territory governments to use when developing their own registers, including provisions for:

• Ensuring the accuracy and completeness of the information contained in them
• Minimum requirements for what constitutes a compliant publicly accessible register of company beneficial ownership

Additional Details and Exceptions

In addition to the required information, the register could also include additional details such as:

• Type of control an individual has over a company
• Relevant legal or regulatory information

The order allows for exceptions in certain circumstances, such as where releasing personal information would put an individual at risk of harm.

UK Government Support and Funding

The UK government is working with Open Ownership to establish publicly accessible registers in the OTs and has provided funding to support the procurement of new registers in some territories. The Foreign and Commonwealth Development Office (FCDO) is also producing best practice guidance for Territory governments and highlighting examples of good practice already in place in the OTs.

Next Steps

The draft order will be reviewed by Territory governments and other stakeholders before being implemented. The UK government has encouraged all OTs to continue working with it to identify and resolve any issues that may arise during the implementation process.

• Financial and advisory support will be provided to help Territory governments implement their publicly accessible registers of company beneficial ownership
• Funding for new register procurement, as well as best practice guidance and technical assistance, will be available

Expected Implementation Timeline

The draft order is expected to come into effect in the coming months, pending final approval from Territory governments and other stakeholders.

This move is a significant step towards increasing transparency and combating financial crime in the OTs, which are often criticized for their lack of transparency and secrecy. The UK government’s efforts are expected to improve relations between the UK government and its overseas territories, as well as enhance global efforts to combat money laundering and terrorist financing.