UK: New UK government devotes to public beneficial ownership registers

As published on: thepaypers.com, Friday 22 November, 2024.

The UK Foreign Office has declared that the government is firmly supporting the establishment of fully public registers.

The remarks follow a letter from a cross-party coalition of 40 MPs to Foreign Secretary David Lammy, urging him to exert pressure on British crown dependencies and Overseas Territories to implement fully public beneficial ownership registers.

This development occurs amidst significant opposition from numerous UK Overseas Territories, which many reports suggest play an important role in facilitating the movement of illicit funds across borders. Additionally, it comes just before the annual Joint Ministerial Council scheduled for 19 November 2024.

This summit brings together UK government officials and representatives from overseas territories, including the British Virgin Islands (BVI), Cayman Islands, and Jersey, in London. The territories had committed to implementing public registers by the end of 2023, but nearly all have fallen short, stated the letter from MPs. Many overseas territories have resisted fully public registers, citing concerns over data privacy.

Up to 40% of the world’s illicit funds pass through overseas territories
The Members of Parliament expressed their concern that certain Overseas Territories lacked the intention to establish fully public beneficial ownership registers, emphasising that this action is needed without delay.

Beneficial ownership registers provide details about the actual owners of various corporate entities. The goal was to make state registers containing this information publicly accessible throughout the UK overseas territories.

This initiative was seen as a vital anti-money laundering (AML) measure, as many of these jurisdictions are considered significant sources of illicit financial flows. The UK government has estimated that up to 40% of the world’s illicit funds pass through overseas territories and London.