Britain’s offshore territories and crown dependencies have established registers allowing access to beneficial ownership information following a seven-year government campaign to increase corporate transparency. The registers, known as Liarbos, require applicants to demonstrate legitimate interest and explain how the information will prevent money laundering or terrorist financing. However, transparency advocates contend that these systems fall short of their intended purpose due to substantial access barriers.
The implementation varies by jurisdiction. The Cayman Islands requires a minimum $75 fee per application, necessitates international wire transfers, and subjects applicants to extensive documentation requirements. Additionally, entities can apply for three-year “protection from disclosure” orders at a cost of $1,000, with exemptions granted on grounds that include potential activist targeting. The British Virgin Islands system is viewed as even more problematic, as officials notify the subject of inquiries while witholding the names of individual requesters. Response times have proven lengthy, with some information requests remaining unanswered months after submission.
Anti-corruption campaigners have criticized the registers as ineffective. Stephen Abbott Pugh of Open Ownership characterized the systems as “too costly, too complicated” and inaccessible to legitimate users. Margaret Hodge, a prominent anti-corruption advocate, described the registers as making “a mockery of their purpose.” Parliamentarians have expressed concerns that the systems allow illicit financial flows to continue through British territories, citing real-world examples including the 1MDB scandal and revelations about oligarch funding of financial institutions.
The Cayman Islands government defended its registry, noting that only 25 applications had been received in 19 months and rejecting characterizations of access difficulties. Officials stated that no credible evidence supports claims of illicit finance problems in the jurisdiction. Westminster officials have indicated that the current registers represent only an interim step toward fully public corporate registries. Tensions between London and offshore jurisdictions have escalated, with government representatives suggesting that failure to achieve greater transparency by a planned summit this December would be inadequate.
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