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MPs have called on Foreign Secretary David Cameron to get public registers revealing the true owners of companies "over the line" in Jersey and other offshore jurisdictions.
A group of 32 cross-party MPs have co-signed a letter by Dame Margaret Hodge asking for immediate action from the UK Government, saying that “sunlight is the best disinfectant”.
Guernsey, Jersey and the Isle of Man pledged in 2019 to bring in public registers to show who ultimately owns companies based in the islands by the end of this year, but last week rowed back on that commitment.
Instead, the registers will be open for certain due diligence checks by the end of 2014, and then beyond that potentially to journalists and campaign groups that can prove a “legitimate interest”.
The EU is currently reviewing the directive that first led to public registers in member States after a court ruling that they unfairly breached privacy rights.
“Public registers are needed to combat tax evasion, money laundering and other economic crimes,” Dame Margaret Hodge's letter said.
“Put simply, we need public registers so we can know who owns companies offshore and follow the money to identify potential wrongdoing.”
Pictured: Dame Margaret Hodge.
A decade ago when he was Prime Minister, Lord Cameron was at the forefront of moves for public registers.
Since then the Panama Papers, Paradise Papers, Pandora Papers, FinCEN Files and Cyprus Confidential leaks have all exposed the pivotal role played by the UK’s territories and dependencies in facilitating tax evasion and illicit financial flows, the letter said.
“The leaks outlined how criminals, kleptocrats and oligarchs continue to hide and launder their wealth offshore – with impunity.”
Public registers were the will of Parliament, it said.
Pictured: The full list of signatories to the letter.
“As one of the pioneers for public registers, we hope you can tell us what you are doing to work with Overseas Territories and Crown Dependencies to get this issue over the line," the letter said.
"We must establish public registers of beneficial ownership in both out Crown dependencies and Overseas Territories with no further delay."
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