UK Government Commits to Public Beneficial Ownership Registers

The UK government has reaffirmed its commitment to implementing fully public beneficial ownership registers, with a spokesperson from the Foreign Office emphasizing that the initiative is being pursued with “full vigor.”

This declaration follows a call to action from a cross-party group of 40 MPs, who addressed a letter to Foreign Secretary David Lammy urging him to pressure British Crown Dependencies and Overseas Territories to move forward with these registers. The MPs highlighted the importance of public access to beneficial ownership information as a critical tool for combating global money laundering.

“Public registers are needed to combat money laundering… [and] so we can follow the money to identify potential wrongdoing,” the MPs stated in their letter. They expressed concerns that several Overseas Territories show “no intention” of establishing these registers, despite previously pledging to do so by the end of 2023.

The push for transparency coincides with the annual Joint Ministerial Council, held on November 19, which brings together UK government officials and representatives from Overseas Territories, such as the British Virgin Islands (BVI), Cayman Islands, and Jersey. This year’s summit, the first since the Labour Party’s landslide victory in July, is expected to intensify discussions on this issue.

Overseas Territories have resisted the move towards fully public registers, frequently citing concerns over data privacy. However, MPs have stressed the urgency of the measure, viewing public access to beneficial ownership information as essential to tracking illicit financial flows.

Beneficial ownership registers are designed to disclose the true owners of corporate entities. The creation of publicly accessible state registers was proposed as a crucial anti-money laundering (AML) step, given the role many of these jurisdictions play in facilitating illicit finance. Reports suggest that British Overseas Territories are key enablers of global financial crime, allowing dirty money to flow unchecked.

The UK government itself has estimated that up to 40% of the world’s dirty money passes through Overseas Territories and London, further underlining the necessity for transparency. While these registers were pledged by the end of this year, most territories have yet to follow through, fueling concerns from lawmakers and transparency advocates.

By fLEXI tEAM