The governments of Jersey, Guernsey and the Isle of Man have announced a series of steps regarding each jurisdiction’s central register of beneficial ownership information of companies and how they will move towards developing international standards of accessibility and transparency in the coming years.
The move follows many months of pressure from UK politicians, led by Margaret Hodge and Andrew Mitchell, who are eager to improve tax transparency. In March, more than 40 MPs supported an amendment that would have forced the Channel Islands to be more transparent over ownership, but the debate was withdrawn.
Today Jersey, Guernsey and the Isle of Man have outlined the three phases in which they plan to move towards making the register public:
• To interconnect the islands' registers of beneficial ownership of companies with those within the EU for access by law enforcement and financial intelligence units (reported to be by 2021)
• To give access for financial service businesses and other businesses for due diligence purposes (by 2022)
• To give public access aligned to the approach taken in the EU’s Fifth Money Laundering Directive (by 2023)
Guernsey response
Guernsey's Chief Minister, Deputy Gavin St Pier, said Guernsey was publishing a detailed action plan that set out a ‘reasonable timeframe’ for the changes. Proposals would be brought before the States within 12 months of a key EU review in 2022 into the implementation of public registers in member states.
He said: "The action plan reinforces our message that it is for Guernsey to determine its own policy position. We will never compromise the high standard of our register – which is populated by verified up-to-date data – with the adoption of an inferior model. Our action plan will ensure that our register and corporate regulation continues to set a standard for larger jurisdictions to follow."
Guernsey Finance Chief Executive Dominic Wheatley (pictured) added: “We are pleased the government has set out a clear signpost towards continuing the development of our robust regime in line with emerging international standards.
“This development provides great confidence in the security and stability of our regime, maintaining the island’s high standards and approach. Guernsey remains committed to the highest standards of compliance and transparency in line with relevant authorities and global norms whilst also continuing to recognise and respect an individual’s right to privacy.”
Jersey response
Senator Ian Gorst, Jersey's External Relations Minister, said: "Jersey is proud to be among global leaders in matters of tax cooperation, transparency and in combating money laundering and countering the financing of terrorism. The commitments we are announcing today, alongside Guernsey and the Isle of Man, will help to ensure that this leadership role is maintained whilst taking into account the standards being developed within Europe."
Joe Moynihan (pictured), CEO of Jersey Finance, commented: “This move is the result of ongoing engagement between the authorities in Jersey and counterparts in the other Crown Dependencies, the EU and the UK. The EU’s most recent directive on anti-money laundering sets out a timescale for member states to adopt a common approach to establishing central, interconnected and ultimately public registers and there is a real sense that there is now a clear direction of travel towards an international standard.
“As a cooperative jurisdiction and a good neighbour to the EU, Jersey shares the objective of tackling financial crime and has said all along that it would move on this issue in line with international standards. Now is the right time to make this positive and strategically important move that will position Jersey well for the future.
“Jersey has had a central company register populated by accurate, verified and up-to-date data for some 30 years, but this latest move means that in due course information will also be publicly accessible. It puts Jersey in a far more advanced position than most other countries globally and right at the forefront of the transparency debate.
“As an industry, we are now looking ahead to working together with government and other partners to move forward on these commitments in a sensible and pragmatic way, as we continue to play a positive role in tackling financial crime and adding value to the global economy.”
UK response
However, from the UK – where the names of anyone who owns more than 25% of a registered company are already publicly available – concern was expressed over the speed of change.
Key campaigner Margaret Hodge tweeted: "I welcome the news that the Crown Dependencies intend to adopt public registers of company ownership. They have listened to Parliament’s call for greater transparency. But proposed time frame is far too long and they must set out details of how truly open registers will be setup."