Offshore tax havens block UK's transparency push
Complex and slow beneficial ownership registers in offshore tax havens are undermining the UK's corporate transparency efforts.
Despite the UK's overseas secrecy jurisdictions caving to pressure to adopt corporate transparency, finding out who owns companies in these island havens remains extremely difficult in practice.
Restrictive and Paid Application Processes
In the Cayman Islands, applicants are required to prove a legitimate interest as a researcher, journalist, or member of civil society. Applicants must explain how the data will be used against money laundering or terrorism financing, and they are required to pay a fee of at least $75.
Processes in the British Virgin Islands
Transparency campaigners argue that the system in the British Virgin Islands is even worse. Authorities inform the subjects of scrutiny about inquiring organizations, but do not notify the individuals, and it can take months to receive responses.
Enforcement and Delay Issues
Steve Goodrich from Transparency International stated that a request regarding a sanctioned Russian oligarch still had not received a response after three months. Veteran anti-corruption campaigner Margaret Hodge stated that the slow-moving registers make a mockery of the purpose.
Historical Connections and Scandals
Known as Liarbos, these registers emerged following a seven-year campaign by the UK government targeting overseas territories and crown dependencies such as Jersey and Guernsey. Tax havens have historically been linked to events such as the 1MDB scandal.
Defenses by Authorities and Debates
Cayman Islands and British Virgin Islands authorities, however, defend their regimes. They claim that their systems provide appropriate transparency alongside individual privacy protections and are compliant with international standards.