SMITH: UK understands we will never have fully open registers

Junior Minister for Financial Services Lorna Smith says the UK has effectively accepted that the BVI will not move to fully public registers of company ownership, as the territory pushes ahead with its new legitimate interest access (LIA) regime.

Speaking recently on the Virgin Islands Voice programme, Smith said while engagement with the UK continues, there is now a clear understanding that full public access “is not going to happen” if the territory is to preserve its financial services industry.

“I believe that the United Kingdom has accepted that legitimate interest access is the way to go,” Smith said, while cautioning that “there’s always challenges” and ongoing discussions with UK officials.

Her comments come as the BVI formally rolls out its LIA regime, which allows approved applicants to access beneficial ownership information if they can demonstrate a legitimate interest — a system government has argued balances transparency with privacy.

The shift is heavily influenced by a landmark 2022 ruling by the European Union’s Court of Justice, which struck down mandatory public access to beneficial ownership registers on privacy grounds. The ruling forced European countries to roll back fully open registers and instead adopt more controlled access models — a position now reflected in the EU’s Sixth Anti-Money Laundering Directive (AMLD6).

BVI officials have repeatedly pointed to that decision as justification for resisting longstanding UK pressure for fully public registers, arguing that global standards have now moved closer to the territory’s position.

Smith also defended the territory’s track record, noting that the BVI established its Beneficial Ownership Secure Search (BOSS) system in 2017, allowing law enforcement and competent authorities in the UK  to have rapid access to ownership data.

“We have always committed to the highest standards of transparency and best practice,” she said, adding that the territory has “no interest in illicit activity”.

BVI not like other OTs

Smith also pointed out that only Gibraltar and Montserrat currently operate fully public registers among the Overseas Territories, but suggested their situations are not directly comparable.

“Gibraltar will tell you that they are very comfortable. Montserrat is tiny. They will probably tell you that they are comfortable also. But when you compare what BVI offers, we have at least 350,000 companies…the size of our register,” she explained.

She added that most other Overseas Territories are now moving toward the LIA model, signalling a broader shift away from full public access.

While acknowledging that further adjustments may be required through ongoing negotiations with the UK, Smith insisted there will be no reversal of the current direction.

“As I said before, we are committed to full transparency, but I don’t think there will be any turning back. We will engage with the United Kingdom. If there are some little adjustments that we have to make here and there, and they work for us and for our industry, then we will accede,” she said.