The Turner Little team has learned that the UK government could introduce legislation that would require UK overseas territories to reveal who really controls offshore companies.
Public registers
The UK is leading global efforts to end international corruption and tax crime. The government is currently planning to hold an anti-corruption summit and starting next year, the UK will begin publishing information on beneficial ownership of companies in England and Wales on public registers.
This won’t apply to UK crown dependencies and overseas territories. They’re self-governing and as such are only partially subject to UK law. Overseas territories such as the British Virgin Islands and the Cayman Islands, which have both refused to adopt public registers, have become tax havens which the government fears are being used for money laundering and tax evasion.
Government plans
Campaigners have argued that it’s vital that UK overseas territories establish these registers to show who’s really controlling offshore companies. UK Prime Minister David Cameron has actively led calls for UK overseas companies to adopt public registers on beneficial ownership.
Cameron has noted that some UK crown dependencies and overseas territories “are not moving anywhere near fast enough” to confront money laundering and tax evasion. Anti-corruption champion Sir Eric Pickles has now spoken out on the issue. At a recent discussion with civil society groups, he suggested that the behaviour of some of the UK’s former colonies in this area was “simply unacceptable.”
Pickles speaks out
This prompted journalists from the Guardian to ask Pickles whether this means the government’s planning to enact legislation to require UK overseas territories to adopt these public registers. Pickles said that legislation is one option through which reform could be achieved, but there are “more ways to get to this than through the legislative route.”
The anti-corruption champion added, “how to get there, through legislation, guidance or naked pressure, the prime minister is pretty determined to get there.” Pickles went on to warn that the government is planning to tackle fears that money can be laundered through London’s financial system or invested in high-value property. He said that “London will not be a place where blood-stained dictators can spend out their twilight years.”
Turner Little
In its bid to tackle global corruption the UK government may find a way to compel UK overseas territories to implement public registers for company formations. Turner Little will track developments to ensure we provide you with the service you need to form an offshore company legally.
Turner Little was founded in 1998 and it has since become a well-established UK based professional Company Registration Agents, Registered Bank Intermediaries and Business Consultants, as well as Trust providers.
