New PARBO deadline linked to June UK Illicit Finance Summit

A British-government-organised international summit in June on combating illicit financing is being touted as a final deadline for Cayman and other Overseas Territories to fully enact the Public Access to Registers of Beneficial Ownership (PARBO) legislation.

According to a UK government press release, the focus of the summit is to tackle the flows of dirty money around the world. Scheduled to be held in London over two days from 23-24 June, the Illicit Finance Summit will bring together governments, civil society organisations, and private sector representatives, such as major banks, to build an international coalition to tackle flows of dirty money around the world and strengthen the UK’s national security. 

Against that background, the clock is said to be ticking for Cayman and otherUK OTs to enact the full gamut of the PARBO legislation and regulations, which cover public access to information about who owns companies, funding instruments, and other financial holdings in their respective financial services sectors.

The UK government statement said the Summit will focus on strengthening global enforcement efforts to prevent, disrupt, and recover dirty money, including through closer collaboration with the private sector. The conference will also forge new agreements to tackle modern methods for moving dirty money, such as laundering in the property sector, misuse of crypto-assets, and trading in illicit gold.

The British Foreign Secretary Yvette Cooper said:  “Dirty money fuels crime on the streets of the UK and drives conflict and instability overseas…This government is committed to turning the tide. That’s why I will host the Illicit Finance Summit at Lancaster House on 23 and 24 June, bringing together governments, civil society, and the private sector. “

She said the Summit will agree on tough international action on three means through which dirty money is moved. “Illicit gold - which is financing Russia’s war in Ukraine; property - used by criminals and kleptocrats to hide cash; and crypto-assets - increasingly exploited by people smugglers to stash away their profits.”

The link between the timing of the summit and having the full PARBO law in place was highlighted during a recent sitting of the UK’s All-Party Parliamentary group for the Overseas Territories(APPG/OT). The long delay in having the much-negotiated and debated law fully implemented was one of the main talking points, with MPs expressing displeasure at the five-year lapse since 2020 to have the law in place.

An Order in Council, a British constitutional instrument to directly impose legislation, has already been drawn up, with several MPs insisting that it should be enforced on those territories that have still not passed the full law. Cayman has legislated most of the components, but negotiations are continuing with the British government over a fee system that the Cayman Islands Government(CIG) wishes to put in place to charge persons with ‘legitimate interest’ to access the registry.

SUGGESTED SIDEBAR

• The link between the timing of the summit and having the full PARBO law in place was highlighted during a recent sitting of the UK’s All-Party Parliamentary group for the Overseas Territories(APPG/OT).

• The long delay in having the much-negotiated and debated law fully implemented was one of the main talking points, with MPs expressing displeasure at the five-year lapse since 2020 to have the law in place.