The government has said it will support a legislative amendment which will force British Overseas Territories to create public registers of company ownership, helping to address the global system of hiding places for ‘dirty money’ according to the Guardian.
Labour MP Margaret Hodge and Conservative MP Andrew Mitchell had tabled an amendment to the Sanctions and Anti-Money Laundering Bill currently going through parliament. Foreign Office Minister Alan Duncan confirmed that ministers would not seek to oppose the amendment.
The Speaker of the House of Commons John Bercow rejected a series of last-minute amendments seeking to dilute the disclosure requirements on the grounds that they were tabled too late.
The Hodge/Mitchell amendment will require the 14 overseas territories to introduce a public register of company ownership by the end of 2020, or face having a register imposed by the UK government. The territories include financial centres such as the Cayman Islands and the British Virgin Islands.
The issue of tax havens was raised with the release of the Panama Papers in 2016. Around half of the secretive companies revealed by the papers were said to be based in offshore structures registered in the British Virgin Islands, according to Transparency International.
Margaret Hodge defended the imposition of new rules on the overseas territories, which also saw interventions to abolish the death penalty in 1991 and decriminalise homosexuality in 2000.
Hodge said: “The areas on which we have intervened… are moral issues. I can’t think of another issue which is more moral than trying to intervene to prevent the traffic in cirrupt money and illicit finance across the world.”