The Crown Dependencies – Jersey, Guernsey and the Isle of Man – have faced fresh calls to introduce public registers of company ownership from dozens of MPs.
A high-profile House of Commons debate was deferred before it began on Monday, when the UK government temporarily withdrew the Financial Services Bill, which included amendments that would have put the islands on course for a constitutional clash with Westminster. Before the bill was withdrawn, the amendments looked likely to be approved.
Joe Moynihan, Jersey Finance chief executive, said Jersey’s finance industry supported the measures already in place in the Island as the ‘best way of achieving compliance’ with international standards.
He said: ‘Our system, which has been rigorously assessed by the respected global-standard setters on many occasions over the years, includes careful verification by the service providers, who are regulated and required to undertake checks on the ownership data provided.
‘Such ownership information is then freely available on request to the people that need it – the regulators and law enforcement officials – and through this approach, we also ensure that the individuals’ right to confidentiality in financial affairs is retained.’
The Financial Services Bill aims to prepare the UK’s finance industry in the event of a no-deal Brexit.
However, a group of more than 40 Westminster MPs – including senior members across all parties – backed moves to force the Crown Dependencies to create public registers of beneficial ownership. This is despite the fact that the House of Commons has no authority to regulate for the islands and Chief Minister John Le Fondré said it would be highly unlikely that the legislation would pass through the States Assembly, even if it was approved by the UK’s parliament.
Mr Moynihan added: ‘The Government of Jersey has made clear that it is a respected constitutional position that the United Kingdom does not legislate for Jersey on domestic matters, without its consent.
‘We welcome and support their ongoing dialogue with officials in Westminster about the implications.
‘Alongside that issue, there remain question marks over public registers, both in terms of their efficacy and their intrusion into personal privacy.
‘Until those questions are answered, we believe strongly that Jersey’s approach to compliant confidentiality and its regulated beneficial ownership model, in which it has led the way among international finance centres globally, is the most
effective.’
