A high-profile debate took place yesterday in the UK House of Commons and considered a set of amendments to the Sanctions and Anti-Money Laundering Bill. The debate has brought the issue of beneficial ownership and public registers back into the spotlight.
The result was that the amendment with respect to the Overseas Territories was carried, while the amendment tabled with respect to the Crown Dependencies was withdrawn.
The withdrawal of the amendment, which provided for UK domestic policy to be applied to the Crown Dependencies in respect of public registers, has been welcomed by Jersey Finance, underlining the contention that the UK Parliament cannot and should not seek to legislate for the Crown Dependencies.
Geoff Cook, CEO Jersey Finance (pictured), commented: “Jersey continues to remain aligned with the UK in terms of its commitment to combat money laundering and financial crime. We are confident our central register of beneficial ownership, backed up by trust and company service provider licensing, is fully in line with international standards as set out by the FATF, MoneyVal and the OECD, and remains the best way of achieving continuing compliance with international standards.
“While this outcome is a sensible and pragmatic result for the jurisdiction, the debate has given Jersey another opportunity to clarify its approach to managing and sharing beneficial ownership information. Information on our central register, tried and tested for almost three decades, is available to the people who need that vital information and we are constantly working with law enforcement agencies and other relevant authorities to ensure they have everything they need."
Minister's response
Chief Minister, Senator Ian Gorst, also issued a response. “I am pleased the UK Parliament has chosen not to seek to impose its will on Jersey, in direct contradiction to constitutional convention and ignoring the substantial work of the island in matters of transparency and robust financial regulation.
“This decision recognises the constitutional autonomy of the island, and preserves the historical relationship between Jersey and the UK. It also acknowledges our position as a leading jurisdiction in matters of transparency and in the prevention of financial crime and money laundering.
“We will continue to pursue the highest international standards and will consult with the UK in relation to their implementation – including the fourth and fifth Anti-Money Laundering Directives, the EU’s progressive legislation designed to counter money laundering.
"This is in line with our existing good neighbour relationship with the EU and the fact that we have considered the implementation of previous EU Directives in this area. However, we will do this in our own time.
“We will also continue active engagement with UK Parliamentarians to ensure that our regulatory and constitutional position are well understood in Westminster and continue to be respected.”