The UK offshore haven missed the deadline for plans to increase corporate transparency as MPs criticized the British Virgin Islands (BVI) for launching a cartoon mascot against financial crimes, especially ahead of new legislation.
Jurisdiction, including BVI and Bermuda, pledged last year to approve the law that would allow access to company ownership data to people with a “legitimate interest” by April 2025, and will be implemented in June.
The Guardian understands, but four British overseas territories - BVI, Bermuda, Anguilla and Turkish and Caicos - failed to reach the deadline.
Any further delay could raise lingering concerns that the UK’s offshore centre, known for its secrets, has the potential to clash between Westminster and the island government driven by UK transparency.
The BVI was named in multiple international investigations of so-called financial misconduct and has not yet introduced legislation to give it a legitimate interest to the beneficial ownership register of persons who have a legitimate interest to view that information.
Meanwhile, the island government launched a cartoon bird called Riley Right, whose mission is to encourage "responsibility, integrity, global awareness, honesty and transparency".
The bird appears to be a green parrot wearing a lawsuit and is part of a larger action plan for financing from the BVI National Coordination Committee on Anti-Money Laundering and Anti-Terrorism.
Joe Powell MP, who leads the UK Inter-Parliamentary Group (APPG) to examine financial crimes and taxes, said: “The British Virgin Islands not only missed the critical deadline they promised in the Joint Council of Ministers, but are now mocking British values by revealing a cartoon mascot instead of taking a cartoon mascot, rather than taking a practical action on economic crime.
“If BVI wants to do business under the British flag and our rule of law, they must also uphold the standards of transparency and integrity we expect. The trivialization of serious global financial threats undermines our battle with money laundering and kleptocracrena – ultimately making Britain safer.
“It is disappointing that the BVI and other overseas territories continue to postpone the implementation of important transparency measures. The UK must now seriously consider how to ensure that these long-term commitments are delivered.”
The granting of ownership data to persons with a “legitimate interest” is considered a stepping stone to the fully publicly available Parbos, a measure that ministers and campaign groups believe should be a global norm for international financial crimes.
Phil Brickell, a member of the same APPG chair of Powell, said: “While I welcome the efforts to promote business in the right way anywhere, it will certainly be better spent time and money to lift the corporate secrets of the British Virgin Islands company, which both the scams and Kleptocrats in the world use clean and fixed dirty cash.”
A BVI spokesman said Riley’s rights were “a simple and effective way to engage in a wider community and enhance understanding.”
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“Spending or looking at it in isolation will show a highly misleading description of the scale of the work we do. It will not negate or replace our broader international commitment in any way.”
Regarding the Open Ownership Register, they added that the BVI government is “in the late stage of finalizing its policy, which will have nothing to do with the UK government and be published in due course”.
A spokesman for the Bermuda government said, “In taking necessary steps, both legislation and operations, to implement a legal interest access ownership registry.”
A spokesman for the UK Foreign Ministry said: “This government has addressed illegal financing from day one of the UK and our overseas territories and royal dependencies.
“All overseas territories are making progress and officials remain in touch with the government to ensure their proposals meet the requirements of the November agreement.”
The guardian has been close to Anguilla and Turkish and Caicos' governments for comment.