‘A mockery’: how offshore tax havens are thwarting the UK’s transparency push
Critics say ownership registers are too costly and too complicated, scuppering attempts to expose alleged money laundering Since Britain’s offshore secrecy jurisdictions caved in to pressure from Westminster to embrace corporate transparency, finding out who owns a company in one of these island havens is, in theory at least, a piece of cake. Take the Cayman Islands. Continue reading...
Offshore tax havens are undermining the UK's efforts to increase transparency, critics argue. To access beneficial ownership information in these jurisdictions, individuals must prove a legitimate interest, explain the use of the data and pay a fee of at least $75 (£55) per application. Applicants must then fill out a lengthy form and wait for a response, which can be delayed due to protection from disclosure applications costing $1,000.
The system in the British Virgin Islands (BVI) is particularly criticized, as officials may inform the subject of any inquiry about their identity, rather than the names of the organizations questioning them. Transparency campaigners, such as Transparency International's Steve Goodrich, have expressed frustration over the slow progress in obtaining information, citing a lack of response to inquiries involving sanctioned individuals or massive UK property holdings.
Margaret Hodge, a veteran anti-corruption campaigner, described the process as "a mockery of its purpose." The UK government's push for corporate transparency began seven years ago, following instances of money laundering, tax evasion, and other illicit activities linked to offshore havens. Despite the introduction of "Legitimate Interest Access Registers" (Liarbos), many still find it too costly, complicated, and time-consuming to access crucial information.
The Cayman Islands spokesperson defends the system, citing few applications and rejecting criticism of its usability and cost. The UK government aims to eventually make corporate registers fully public, but the ongoing tension between London and offshore jurisdictions highlights the difficulty in achieving greater transparency.
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