‘Don’t challenge our autonomy’
BRITISH MPs who want to impose domestic law in Guernsey without local consent have been warned the island would ‘robustly’ challenge any attempt to do so.
In a hard-hitting open letter to the MPs, Chief Minister Gavin St Pier highlighted a ‘centuries-held constitutional rule’ that the UK parliament did not legislate in this way when it came to Guernsey.
He also held out an olive branch with the offer of ‘constructive dialogue’ over financial transparency laws.
The letter was addressed to MPs backing an amendment to UK legislation that, if passed, would require the Crown Dependencies to introduce public registers of beneficial ownership.
Campaigners claim a public register would improve transparency.
However, it has raised fundamental concerns that the UK parliament passing such a law in this way for the Crown Dependencies would breach constitutional conventions.
Setting out the constitutional relationship, Deputy St Pier told MPs that the Channel Islands and the Isle of Man had never been part of or dependencies of the UK.
‘We are separate jurisdictions with our own legislatures, executives and judiciaries with full domestic autonomy,’ he wrote.
‘The Channel Islands are British through their relationship with the Crown, as the modern day successor to the Duke of Normandy.
‘We have a mature legal system with our own jurisprudence that is derived from Norman law.’
He added: ‘To attempt to deviate from this constitutional position, at a time when the UK parliament is debating matters relating to the UK’s own sovereignty and the European Union, would create a constitutional over-reach for which the irony cannot be ignored.
‘Should these amendments be included in any Act they would lead to inoperative legislation, based on a misunderstanding of the constitutional position. We would challenge it robustly.’
The amendments could also leave the UK parliament with a ‘misconception’ that it had addressed a perceived problem to the detriment of the shared objective of eliminating the global problem of financial crime.
The letter detailed how Guernsey’s existing register of beneficial ownership worked with tax information ‘spontaneously’ exchanged using the established international framework as well as with the UK through the annually reviewed Exchange of Notes system.
‘We have this year given a political commitment to the European Council in relation to the development of an integrated platform for sharing beneficial ownership information between EU member states’ and Guernsey’s tax and law enforcement authorities,’ it added.
Anyone looking to evade tax or launder money would be ‘foolish’ to try and use Guernsey to do it, according to Deputy St Pier.
There also was ‘a misconception’ that a public register were automatically better, with Guernsey’s established register of beneficial ownership featuring more accurate, up-to-date and verified information than that retained on the UK register.
‘We are part of the solution to the global problem of financial crime. As evaluated by international bodies, we should be judged objectively by our high standards and our robust and effective approach in combating financial crime,’ said Deputy St Pier.
Guernsey was also ‘committed to the development and implementation of an international standard in this area’. It wanted to work with MPs, the UK Government and international bodies to achieve such a standard in a timely manner while respecting the constitutional relationship.
‘We would welcome the opportunity to meet with you as soon as possible to discuss the delivery of this commitment,’ said Deputy St Pier.
‘We look forward to the opportunity for constructive dialogue with all parties on these important issues - not just now, but in the months and years to come.’
