BVI to Restrict Access to Beneficial Ownership Register with 'Legitimate Interest Test'

The British Virgin Islands (BVI) has announced that access to its beneficial ownership register will be restricted to those who can pass a 'legitimate interest test,' meaning the register will not be fully publicly available. This decision comes despite previous pressure from the UK government for all British Crown Dependencies and Overseas Territories, including the BVI, to establish fully accessible beneficial ownership registers.

In a statement, the BVI government said, "We are working… on progressing with the implementation of a publicly accessible register of beneficial ownership for those with a legitimate interest in the requested information." This statement was made in response to concerns raised, which reported that the BVI remains a global hub for illicit financial activities.

The BVI's financial services sector is notably large in comparison to its local economy, with companies registered in the jurisdiction holding assets valued at $1.5 trillion—an amount over 1,000 times greater than the BVI’s GDP, which stands just above $1 billion. According to the BVI government’s website, company registrations contribute to more than half of the territory’s revenues.

A 2022 report by Transparency International highlighted "endemic problems" within the BVI, labeling it as the "destination of choice for corrupt individuals looking for secrecy." Previous UK governments have attempted to combat money laundering in territories like the BVI by advocating for fully public beneficial ownership registers. However, several jurisdictions, including Jersey, have since retreated from making these registers publicly accessible.

Citing concerns over unfair privacy issues for companies, many British Overseas Territories and Crown Dependencies have instead introduced 'legitimate interest tests,' which must be met for individuals or entities to access the registers. Such measures generally limit access to law enforcement and state agencies, drawing criticism from organizations like Transparency International. The group argues that public access to these registers has been pivotal in investigations, such as the one that exposed a conflict of interest involving the former Czech prime minister.

Last month, BVI Premier Dr. Natalio "Sowande" Wheatley reinforced this stance, stating that the government would not allow "uninhibited" access to the beneficial ownership register. Addressing the BVI House of Assembly, Wheatley said, "We have until 2025 to put some form of register in place. Uninhibited access to the register is unacceptable. Uninhibited access: That’s a no. And therefore we must consider legitimate interest tests for our register."

The BVI government did not immediately respond to requests for further comment outside of regular office hours.

By fLEXI tEAM