Crown dependencies and BOTs mull 'sea change' ECJ ruling on public registers

The implications of the huge decision by the Court of Justice of the European Union to back anonymity for registers of beneficial owners are gradually unfolding on the British Overseas territories and Crown Dependencies.   

Some of those jurisdictions had already done consultations, and the majority have in place plans to set up publicly available registers of beneficial ownership in 2023. 

But Alessia Paoletto, Partner at Withersworldwide, said in a briefing note: "It will now be interesting to see how such a sea change will affect jurisdictions beyond the EU's shores, and what changes, if any, may be made to the existing concept of ‘legitimate interest'."

Carey Olsen partner Michael Hanson counsel Stephanie Bernard said in a briefing note; "This decision will no doubt have implications for the commitments made by British Overseas Territories and Crown Dependencies to establish publicly available registers of beneficial ownership, in respect of which a number of those jurisdictions have, or currently are, undertaking consultations, and which most have committed to put in place by 2023.

"The pendulum finally appears to be swinging back towards privacy and security, and public beneficial ownership registers may not in fact be a foregone conclusion. We will continue to watch this space and share developments."

According to the Bermuda Royal Gazette, its position has long been that it would be willing to make its register public only when this became a global standard, otherwise the island would suffer economic damage.

Although the UK subsequently left the EU, global pressure has continued to push countries to make company registers public.

It further quoted a Bermuda finance ministry spokeswoman who said: "The Ministry of Finance has taken note of the ruling and will continue to monitor developments in this regard.

"Consistent with our reputation as a premier international financial centre, Bermuda remains committed to transparency, compliance with international standards and co-operation."

While campaigners in favour of public registers are calling the decision a blow to beneficial ownership transparency which has set the fight against cross-border corruption back by years. 

Maíra Martini, corrupt money flows expert at Transparency International, said: "Access to beneficial ownership data is vital to identifying - and stopping - corruption and dirty money. The more people who are able to access such information, the more opportunity to connect the dots. 

"We have seen time and time again, from the Czech Republic and Denmark to Turkmenistan, how public access to registers helps uncover shady dealings.  At a time when the need to track down dirty money is so plainly apparent, the court's decision takes us back years."