Think-tank urges upgrades to beneficial ownership
Bermuda is among a number of British Overseas Territories that were to satisfy the British Government on improvements to their beneficial ownership registers by last month, according to a recent newspaper article.
The island was named in a Guardian article which claimed that four out of five overseas territories failed to meet the June deadline for registers of company ownership to be accessible to those with a “legitimate interest”.
The Guardian said: “The measure is aimed at tackling the reputation of some of Britain’s semi-autonomous island OTs for permitting ‘criminals and kleptocrats’ to hide their business dealings behind a web of corporate secrecy.”
Was Bermuda the one compliant out of the five, or among the four laggards?
The Bermuda Government was asked about this by The Royal Gazette on July 1, and so far there has been no response.
A public consultation over the future of Bermuda’s beneficial ownership register closed in January after the European Court of Justice ruled against the EU initiative that would have allowed the registers to be open in all cases to any member of the public.
The consultative paper advised that legislative action to deal with the changes for Bermuda’s register would include a new Act of Parliament this year.
The subsequent revised government policy followed that lead, with the expectation of full compliance by July 10, 2026.
That was before the General Election and the convening of a new parliament.
Meanwhile, a Washington-based think-tank focused on illicit financial flows, corruption, illicit trade and money laundering, has now published a report that highlights the expected introduction of legitimate interest access to beneficial ownership registers by April 2025, with full implementation targeted for June 2025.
Global Financial Integrity’s report on beneficial ownership registries in Latin America and the Caribbean purports to reflect the state of corporate transparency across the region.
The executive summary said it concludes that despite legislative advances, “beneficial ownership registries in Latin America and the Caribbean face major implementation gaps, particularly in data verification, access and integration with procurement systems.
“These weaknesses limit their effectiveness in tackling corruption and financial crime. The report calls for stronger oversight, broader regulatory coverage and reforms that respond to each country’s specific risks to make transparency efforts truly effective.
“The report recommends strengthening data verification systems, expanding the scope of entities required to report beneficial ownership [including trusts and foreign companies] and adopting tiered access models that balance transparency with privacy.
“The findings urge governments to link BO data with public procurement systems, leverage it in environmental and human rights investigations and promote regional co-operation through shared standards and data exchange.
“Finally, the report calls for investment in technical infrastructure and training to ensure that BO registries are secure, interoperable and effectively used by authorities and civil society.”
The report recommends exploring lowering ownership and control thresholds, with the acknowledgement that while 25 per cent is the international — and Bermuda’s — baseline, it has proved insufficient in contexts where illicit actors deliberately structure ownership to avoid disclosure.
It also said verification and enforcement mechanisms must be significantly strengthened, because unverified data has limited utility for law enforcement or oversight bodies.
The report added: “Third, governments should integrate BO disclosure into public procurement systems. This remains one of the most underutilised areas of reform.
“Requiring companies that bid on government contracts to disclose and update BO information, particularly for high-value or high-risk tenders, would serve as a frontline defence against corruption, favouritism and abuse of state resources.
“Fourth, the report recommends adopting differentiated access models that strike a balance between protecting privacy and advancing transparency.
“While not all jurisdictions are in a position to implement fully public registries, allowing access based on a clearly defined legitimate interest, especially for journalists, civil society watchdogs and international partners, might significantly enhance accountability in certain contexts.“
The report said more regional co-operation, through the Caribbean Community, for example, would reduce jurisdiction-shopping and support more effective cross-border investigations.
• For the full report, Beneficial Ownership Registries in Latin America and the Caribbean, see Related Media
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