Plan to name company owners to curb money laundering

Guernsey's government is considering bringing in new transparency reforms to tackle money laundering.

Policy & Resources (P&R) started a consultation open until 10 April on who should be granted information about the people who own companies registered in Guernsey.

It is proposed those with a "legitimate interest" in accessing beneficial owner information, such as journalists or non-government bodies investigating financial crime, should be allowed to apply for it from the Guernsey Registry.

A consultation paper noted Guernsey "continues to align with evolving international standards" but it warned the policy is "proving challenging" in other jurisdictions due to legal hurdles.

It is proposed those granted access to information about people holding an interest of 25% or more in a company would be given their name, date of birth, jurisdiction of residence, nationality and grounds on which they are considered the beneficial owner.

Those receiving the information would have to demonstrate it was needed to investigate money laundering and terrorist financing and views are being sought on whether corruption and tax evasion should be included as part of the scope.

Industry watchdog Guernsey Financial Services Commission said: "The consultation reflected the continued evolution of international standards in this area and the need to ensure Guernsey remains aligned with international expectations.

"We will continue to work closely with the States to ensure any future framework is robust and supports the island's reputation as a well-regulated international finance centre."

Guernsey International Business Association, which represents the finance industry, encouraged firms to respond.

"We are confident that the industry will provide some critical insights to aid the process," a spokesperson said.

The paper said implementation was "likely to remain complex" due to pressure on resources - although the registry would be able to set a fee for information requests.

It noted global concerns about sensitive information being exploited by criminals for extortion, theft and kidnapping.

There is a provision for company owners to apply for access to data to be refused on certain grounds.

P&R Vice-President Deputy Gavin St Pier said: "Guernsey is committed to continue being a responsible and well-regulated international finance centre.

"These proposals represent a balanced and carefully considered step that strengthens our contribution to global efforts to combat financial crime while ensuring that the privacy and safety of individuals remain firmly protected."

Follow BBC Guernsey on X and Facebook and Instagram. Send your story ideas to channel.islands@bbc.co.uk.