EU states ‘dragging their feet’ over financial transparency, report finds
24 Mar 2020

Most EU member states have failed to meet a legal deadline to introduce public registers of the real owners of companies, a transparency measure seen as key to fighting money laundering, according to a review by anti-corruption campaigners.

In May 2018, the European Union passed a directive obliging member states to publish the beneficial owners of firms registered in their jurisdictions by January this year.

The requirement was a response to the Panama Papers scandal, which exposed how anonymous shell companies around the world were being exploited for corruption, financial crime and terrorist financing.

Two months after the deadline and two years after governments were told to get new systems up and running, leading campaign group Global Witness has found only six countries have implemented public register systems that meet the transparency criteria set out in the EU directive.

The UK, which committed to comply with the directive despite leaving the EU, now provides free, searchable and bulk download access to beneficial ownership data through Companies House.

The remaining member states have either failed to create the registers, or have imposed various artificial hurdles inhibiting full public access, Global Witness found. At least one country, Greece, has legislated for notification of beneficial owners if someone has searched for their companies, raising concerns about potential “tipping off” of those under investigation by anti-corruption campaigners or journalists.

Other restrictions listed in the Global Witness report include:

  • Five countries refuse access to the data unless those inquiring register their own details with an electronic identification system.
  • Both Portugal and Poland prevent the public from searching for a company unless they already know its tax identification number.
  • Eight countries have placed their registers behind paywalls, with Greece and Italy also reportedly planning to paywall their registers once they are fully up and running.

By David Pegg, The Guardian, 22 March 2020

Read more at The Guardian

Photo (cropped and edited): European Conservatives and Reformists Group [CC BY 2.0] via Flickr

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