The Crown Dependencies have published a joint commitment to increase transparency and accessibility to information held on their registers of beneficial ownership.
The central registers of company beneficial ownership in Jersey, Guernsey and the Isle of Man already exchange information with international law enforcement entities and tax authorities around the world.
In line with the shared global aim of combatting financial crime in all its forms, access to the information will be extended to include:
• Financial services business and certain other businesses in our own jurisdictions (collectively described as 'obliged entities') who are required to conduct customer due diligence
• Media and civil society organisations that can demonstrate a legitimate interest in accessing relevant information in order to combat financial crime.
The joint commitment follows careful consideration of recent decisions of the Court of Justice of the European Union and the European Court of Human Rights, which recognise the incompatibility with public access with the right to privacy, and recent international developments in response to this.
The commitment, which replaces the one published in June 2019, states: "We have a longstanding and independently verified track record of meeting international standards. We are proud of our global leadership in tax cooperation, in combatting money laundering and in countering the financing of terrorism and proliferation financing. We will continue to provide appropriate and effective transparency which can support those critical objectives."
Progress to date
The Crown Dependencies have already undertaken substantial preparatory work to enable obliged entity access, and it will be implemented before the end of 2024 in a manner that puts in place appropriate safeguards to manage effectively any interference with privacy rights.
Subject to necessary approvals in the Crown Dependencies' legislatures, access for those with a legitimate interest will be provided in line with international obligations extended to the three islands, recognising the crucial balance between protecting human rights and combatting financial crime.
The Crown Dependencies will develop and deliver 'legitimate interest' access in a leading timeframe, taking into account international developments.
Proposals to agree the definition of legitimate interest will be presented to the islands' parliaments by Q4 of 2024 at the latest, with implementation following in a reasonable timeframe afterwards.
Deputy Peter Ferbrache, Chief Minister of Guernsey, said: "Guernsey is pleased to announce its next steps for enhanced transparency and accessibility of information on its register of beneficial ownership.
"The same approach is being taken by the other Crown Dependencies and we are moving together to swift, but realistic, implementation timescales. The islands share the vital global objective of all responsible jurisdictions to combat financial crime in all its forms."
Deputy Kristina Moore (pictured), Chief Minister of Jersey, said: "Jersey meets, and helps to shape, international standards for tackling financial crime. Jersey and the other Crown Dependencies are independently considered global leaders in this area.
"It is important to look to shared global and regional approaches and we have a proven and ongoing good neighbour policy of cooperation with the UK and EU on such matters.
"Jersey continues to encourage other jurisdictions around the world to raise their own standards, particularly for the obtaining, verifying and provision of appropriate access to ownership information and effective regulation of the financial services sector."
• To view the joint commitment click here