OVERSEAS TERRITORIES UNDER PRESSURE TO FULLY IMPLEMENT UK ‘PARBO’ LAW THIS YEAR

By Staff Writer

UK Overseas Territories could face increased pressure from the British government in 2026 to fully implement the Public Access to Beneficial Ownership (PARBO) legislation.

The issue has been a sore point for the UK and several OTs over the past several years with some territories having reservations about how it impacts aspects of privacy within their financial services industry.

Now, the UK’s Dame Margaret Hodge, appointed in an advisory role as the ruling British Labour Party government’s ‘anti-corruption champion’, has warned that if the OTs do not have the full legislation in place by the middle of this year, they could face tougher action from the administering power, the UK.

It was not indicated what form such action could or would take, but the British government retains the overriding constitutional authority to impose legislation on its Overseas Territories.

“In the end, this is a matter of huge importance for which there is support across government. So it’s got to happen,” she told the UK’s Financial Times newspaper in an interview.

While many OTs, including the Cayman Islands, have passed the primary legislation as directed by the UK, only Montserrat and Gibraltar have fully implemented the PARBO law.

There has been resistance to some aspects of the law, which has an overall aim to combat money laundering and illicit financing. A main point of contention is over what’s deemed as ‘legitimate interest’ and who is eligible to gain access to what some territorial governments consider to be sensitive personal information.

This is known to be a particular point of divergence between the British Virgin Islands and the British government. Dame Hodge had visited that territory last year for talks on the matter with the local government.

In the case of Cayman, while it’s been one of the first to comply after some concerns were voiced, the additional matter of fees being imposed remains a point of discussion.

Hon. Premier Andre Ebanks, who has long championed the fees approach, reported on a prior meeting he had with the current UK Minister for the OTs, Stephen Doughy. “After our productive meeting, the UK and Cayman issued a joint statement, announcing that our Islands are considering an annual fee to access our register, rather than the current CI$30 fee for a single search, and CI$100.00 for a multi search where there are connected legal persons.”

This was also one of the main issues addressed during last November’s Joint Ministerial Council meeting of the UK and OTs governments.

The communique issued after the summit stated: “We welcome the introduction of legitimate interest access to existing registers of beneficial ownership by the Cayman Islands in February 2025 and the Turks and Caicos Islands in June 2025 and note the Cayman Islands’ June 2025 commitment to further improve user access.”

It also referred to “commitments by Anguilla, Bermuda, the British Virgin Islands, the Cayman Islands and Turks and Caicos Islands to hold further technical discussions starting in the coming weeks to ensure that we deliver the maximum possible degree of access and transparency whilst protecting the right to privacy in line with respective constitutions.”

According to the communique, “Elected Leaders and the Minister of State will reconvene in early 2026 to review progress and provide a comprehensive update.”

The enactment of the PARBO law in the OTs has missed several deadlines as territories queried several aspects of the legislation and how it would impact their economies, particularly for those that rely heavily on the financial services industry.

The original implementation deadline was December 2020 under the UK’s 2018 Sanctions and Anti-Money Laundering Act (AMLA). That was extended to December 2023, but that target date was also missed. Rescheduled to June last year, it was again held up due to unresolved issues, especially surrounding the matter of ‘legitimate interest’. The next implementation date is now being suggested for the middle of this year, which appears to carry a threat of forced imposition if that is not adhered to.