The Policy & Resources Committee maintains that it will consult again before final proposals return to the States and European developments over the implementation of the sixth anti-money laundering directive will be key to permitting wider access.
It has published a policy letter for debate in the States this week to give the new Assembly a steer on the direction of travel, and to prepare for access to ‘obliged entities’ – primarily businesses which have to adhere to money laundering rules.
P&R is proposing that these parties will need to notify the Guernsey Registry that they need information on beneficial ownership, and the registrar would provide the details in return for a fee to cover administration costs. Jersey has introduced a similar process.
The process would be underpinned by a number of legislative and practical safeguards, including specific restrictions on the use of the information, with criminal penalties for a breach.
When the proposals went out to consultation no objections were received, but there were concerns raised about the practicalities of implementation.
Access to information for those with a ‘legitimate interest’, while protecting personal data and the right to a private life, would require certain categories of the public to be defined as such. This could encompass non-governmental organisations, academics and investigative journalists who contribute to the objectives of fighting against money laundering, but not media who are not linked with fighting financial crime.
P&R expects to produce a further report to the States later in the year but has said it would link progress to European policy updates and would seek to retain a ‘level playing field’ on the issue.
‘Guernsey continues to encourage other jurisdictions around the world to raise their own standards, particularly for obtaining, verifying and providing appropriate access to ownership information and effective regulation of the financial services sector,’ the committee said.
Its report also recognises that political pressure over transparency of beneficial ownership was ‘politically motivated’ and not directly aligned to effectiveness of measures to combat financial crime.
‘The Bailiwick of Guernsey has consistently maintained that it has an effective regime of regulation and effective sharing of beneficial ownership information with UK and other foreign law enforcement and tax authorities,’ it said.
The island takes a more robust approach over regulation and due diligence over company formation and administration.
It has worked closely with Jersey and the Isle of Man on the issue, especially since matters came to a head within government in 2019.
Beneficial ownership was again raised in the House of Commons last week, with questions from a Labour MP to the Foreign Office about the progress being made by Britain’s Overseas Territories to adopt public registers.
Minister Stephen Doughty said that such registers should be accessible to those with ‘legitimate interest’ by the summer.
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