Mapping UBOs across BVI, Cyprus, and the UK

There’s a growing trend among regulatory author­ities to enhance trans­parency regarding the ownership and control of companies, partic­u­larly in offshore juris­dic­tions like the British Virgin Islands (BVI) and Cyprus, as well as onshore areas such as the United Kingdom. At the core of this initiative is the identi­fi­cation of Ultimate Beneficial Owners (UBOs), who are the individuals that ultimately own or control the company, even when their ownership is obscured by layers of corporate entities.

The concept of UBOs gained immense traction following the global push for anti-money laundering (AML) initia­tives and the fight against tax evasion. In response, the UK, BVI, and Cyprus have taken steps to improve the mecha­nisms through which UBOs are disclosed and monitored, thus addressing concerns related to financial crime and enhancing corporate gover­nance.

In the UK, the require­ments for UBO regis­tration have been formalized through the People with Signif­icant Control (PSC) register, estab­lished under the Small Business, Enter­prise and Employment Act 2015. This register mandates that UK companies identify their PSCs—individuals with signif­icant ownership or control—by providing relevant infor­mation to Companies House. The infor­mation available in this register is public, thereby contributing to trans­parency and account­ability within the UK corporate landscape.

Contrasting the UK’s approach, the BVI has imple­mented its own UBO registry through the BVI Business Companies Act, which requires companies to maintain records of their beneficial owners. While this registry is not fully public, the BVI government has committed to sharing this infor­mation with law enforcement and regulatory bodies, thus aiming to improve inter­na­tional cooper­ation and compliance with AML regula­tions. As of now, the BVI operates a ‘whitelist’ of juris­dic­tions fulfilling their standards for trans­parency, which affects their compliance oblig­a­tions signif­i­cantly.

Cyprus also plays a signif­icant role in the mapping of UBOs, partic­u­larly through its robust legal framework and alignment with European Union standards. The country has estab­lished the beneficial ownership registry through its amend­ments to the Prevention and Suppression of Money Laundering Activ­ities Law. Like the UK, Cyprus has a focus on public access to UBO infor­mation, although there are specific condi­tions regarding the privacy and acces­si­bility of this data. Companies in Cyprus must declare their beneficial owners to the Department of Registrar of Companies, which provides a resource for both domestic and inter­na­tional compliance, while also working to combat money laundering activ­ities.

The alignment in policies across these regions illus­trates a collab­o­rative approach towards tackling issues of trans­parency, which resonates well with inter­na­tional organi­za­tions advocating for reform. The prolif­er­ation of UBO registries has not only been beneficial in enhancing regulatory practices but also in fostering trust in corporate struc­tures. As juris­dic­tions continue to evolve their frame­works surrounding UBO mapping, effective cooper­ation among inter­na­tional tax author­ities and financial insti­tu­tions becomes paramount to ensure compliance and to uphold the integrity of financial systems.

To sum up, the mapping of UBOs across BVI, Cyprus, and the UK repre­sents a signif­icant step in the global movement towards increased trans­parency. By imple­menting rigorous frame­works to identify and track beneficial ownership, these juris­dic­tions are striving to create more secure and respon­sible financial environ­ments, which reflects their commitment to combating financial crimes.