22/11/24

BERMUDA: Bermuda consults on beneficial ownership register

As published on: bermudareinsurancemagazine.com, Friday 22 November, 2024.

The Bermuda Government has launched a consultation on reforms to its proposed beneficial ownership register, including moving responsibility for the register from the Bermuda Monetary Authority to the Registrar of Companies.

The consultation, announced yesterday, takes place after the government committed to establish a public register in accordance with international standards in 2020.

Since then, a number of European legal rulings established that a completely open register violated individual rights to privacy, as a result of which the European Union published its Sixth Anti-Money Laundering Directive (6AMLD) which required that access by the public to beneficial ownership information held on central registers was made conditional on the demonstration of a legitimate interest. Bermuda is also planning to implement new privacy regulations in 2025.

“In light of the legal developments, and based on legal advice obtained, the Government of Bermuda considers it necessary to revise its policy position and by extension its public commitment to establish a public register,” the consultation document said.

“The Government is now of the view that a public register is incompatible with Bermuda’s privacy and data protection laws and its international obligations and on that basis, intends to instead progress a central register of beneficial ownership information of companies accessible to persons and organisations that can demonstrate a legitimate interest having regard to the 6AMLD and international best practice.”

The consultation paper said the government planned a phased approach to the register with “obliged entity access” taking place in the second quarter of 2025, followed by implementation of legitimate interest access by the third quarter of 2026.

The Registrar of Companies said it was seeking the feedback of industry and all relevant stakeholders on the proposals, including moving the register to the ROC from the BMA.

The deadline for responses is January 8, 2025.