Financial Crime World

UK Pushes for Public Access to Corporate Ownership Information in Overseas Territories

The United Kingdom is urging British Overseas Territories (OTs) to establish publicly accessible registers of company beneficial ownership. This move aims to increase transparency and curb financial crime, as part of the UK’s efforts to implement the Sanctions and Anti-Money Laundering Act 2018 (SAMLA).

Background

The SAMLA requires OTs without such registers in place by the end of 2020. While some territories have already made progress, others are still lagging behind.

Minimum Standards for Registers

According to a draft Order in Council prepared by the Foreign and Commonwealth Development Office (FCDO), the UK expects OTs to establish registers that meet minimum standards set out in the document. These include:

  • A definition of “beneficial ownership” encompassing direct and indirect control over companies
  • Information on individuals, including:
    • Name
    • Country of residence
    • Nationality
    • Month and year of birth
  • Accuracy and completeness of data
  • Protection for individuals who may be at risk of harm if their information is publicly disclosed

Best Practice Guidance

The UK has prepared a range of best practice guidance to support OTs in implementing the registers. This includes:

  • Briefing materials for policy officials
  • Guides for legislators
  • Access to an enhanced helpdesk function provided by Open Ownership

Progress Made

Several OTs have already made significant progress in this area. For example, Gibraltar introduced its Register of Ultimate Beneficial Ownership in 2019, which is accessible to the public. The British Virgin Islands (BVI) has also established a Beneficial Ownership Secure Search System (BOSS), recognized internationally as an excellent beneficial ownership information exchange.

Support from the UK Government

The UK government is providing financial and advisory support to OTs to help them implement publicly accessible registers of company beneficial ownership. This includes:

  • Funding for procurement of new registers
  • Technical assistance and guidance

“We recognize that implementing these registers will require significant efforts from the Overseas Territories,” said a spokesperson for the FCDO. “We are committed to supporting them in this endeavor and ensuring that they have the resources they need to succeed.”

Importance of Transparency

The UK’s push for public access to corporate ownership information is seen as a major step forward in the fight against financial crime and corruption. As the global economy becomes increasingly interconnected, it is essential that companies and individuals operating within it are transparent about their ownership structures.

“The UK’s efforts to promote transparency and accountability in the Overseas Territories are crucial steps towards creating a more level playing field for international business,” said a leading expert on corporate governance. “We urge all OTs to work closely with the UK government to implement these registers as soon as possible.”