UK offshore havens pass over cut-off date for transparency plans

UK offshore havens have neglected a cut-off date to post their plans to support company transparency, as MPs criticised the British Virgin Islands (BVI) particularly for launching a monetary crime-fighting caricature mascot earlier than new regulation.

Jurisdictions together with the BVI and Bermuda pledged closing yr to approve regulations permitting get entry to to corporate possession knowledge to these with a “legitimate interest” by way of April 2025, with implementation to observe in June.

But 4 British in another country territories – the BVI, Bermuda, Anguilla and Turks & Caicos – have failed to satisfy the cut-off date, the Guardian understands.

Any additional prolong is more likely to gasoline lingering considerations that UK offshore centres famed for his or her secrecy are dragging their toes on the United Kingdom’s transparency push, risking a conflict between Westminster and the islands’ governments.

The BVI, named in a couple of world investigations into alleged monetary wrongdoing, has but to introduce regulation to make its registers of really helpful possession to be had to these with a valid pastime in seeing the ideas.

In the intervening time, the islands’ executive has introduced a caricature chicken, known as Riley Right, whose mentioned venture is to inspire “responsibility, integrity, global awareness, honesty, and transparency”.

The chicken, which seems to be a inexperienced parakeet dressed in a go well with, is a part of a higher motion plan revealed by way of the BVI’s National Anti-Money Laundering and Countering the Financing of Terrorism Coordinating Council.

Joe Powell MP, who leads a UK cross-parliamentary team (APPG) analyzing monetary crime and tax, mentioned: “The British Virgin Islands have not only missed a key deadline they committed to at the joint ministerial council, but are now making a mockery of UK values by unveiling a cartoon mascot instead of taking real action against economic crime.

“If the BVI wishes to do business under the British flag and our rule of law, they must also uphold the standards of transparency and integrity we expect. This trivialisation of serious global financial threats undermines our fight against money laundering and kleptocracy – and it ultimately makes Britain less safe.

“It is deeply disappointing that the BVI and other overseas territories continue to delay the implementation of vital transparency measures. The UK must now look seriously at how to ensure these longstanding commitments are delivered.”

Granting get entry to to possession knowledge to these with a “legitimate interest” is observed as a stepping stone to complete publicly out there registers of really helpful possession (PARBOs), a measure that ministers and marketing campaign teams imagine must grow to be the worldwide norm in a world crackdown on monetary crime.

Phil Brickell, who’s a member of the similar APPG that Powell chairs, mentioned: “While I welcome efforts to promote doing business the right way anywhere, surely time and money would be better spent lifting the veil of corporate secrecy in the British Virgin Islands which has been used by the world’s crooks and kleptocrats to clean and stash their dirty cash.”

A spokesperson for the BVI mentioned Riley Right used to be a “simple and effective way to engage the wider community and enhance understanding”.

“Dismissing or looking at it in isolation would present a highly misleading depiction of the scale of work we have undertaken. It does not negate or replace our broader international commitments in any way.”

Regarding open possession registers, they added that the BVI executive used to be “in the late stages of finalising its policy, which will be shared with UK government imminently and published in due course”.

A spokesperson for the Bermuda executive mentioned it used to be “in the process of taking the necessary steps, both legislative and operational, towards the implementation of a legitimate interest access beneficial ownership register”.

A spokesperson for the United Kingdom Foreign Office mentioned: “This government has made tackling illicit finance in the UK and our overseas territories and crown dependencies a priority since day one.

“All overseas territories are making progress and officials remain in contact with governments to ensure their proposals meet the requirements of the agreement in November.”

The Guardian has approached the governments of Anguilla and Turks & Caicos for remark.