Finance Minister Bob Richards said that creating a public register showing beneficial ownership of companies would cause severe damage to the Island’s economy — unless others including the US, the UK and Canada are prepared to do the same thing.

The UK has committed to creating a public register, but Mr Richards told MPs in the House of Assembly that after a lengthy consultation with local interests, it was clear there was little support for Bermuda to follow suit at this time.

The G7 group, representing the world’s leading industrialised economies, has agreed to a set of principles designed to tackle the misuse of companies and legal arrangements, which state that beneficial ownership information on companies should be accessible onshore to law enforcement, tax administrations and other relevant authorities through a registry.

Bermuda already requires companies to provide information on beneficial ownership, which is stored by the authorities, but not publicly accessible.

Mr Richards said the UK approach exceeded the G7 standards.

“Following the 2013 G7 meeting, the Government of Bermuda was asked to publish its G8 Beneficial Ownership Action Plan by the Government of the United Kingdom and to consider whether Bermuda together with other Overseas Territories and Crown Dependencies would be willing to consider the UK model as opposed to the G7 model,” Mr Richards said.

“Given the nature and scope of the request, the Government of Bermuda was required to consult with industry, accordingly.

“Mr Speaker, since early 2013, the Government of Bermuda has been engaging with industry stakeholders with regard to the UK’s request and the appropriate actions for Bermuda to take in response. This consultation concluded that there is overwhelming support for Bermuda’s present disclosure regime and that Bermuda should not move to the new model of regulation until its adoption by Canada, the United Kingdom and the United States of America.

“Moreover, to do so without simultaneous similar action by competing jurisdictions would put Bermuda at a significant competitive disadvantage and severely damage our economy.

“This position is supported by the Cabinet of Bermuda. The Government of the United Kingdom has been advised of the Government of Bermuda’s position by way of meetings with the FCO and HM Treasury, accordingly.”

He also made the point that Bermuda’s laws on beneficial ownership had been ahead of the UK’s for decades.

“It is important to note that the Government of Bermuda established a legislative framework over 70 years ago, requiring persons wishing to incorporate in Bermuda to provide central authorities with information on the proposed ultimate beneficial owner(s) of a business,” Mr Richards said.

“Ironically, there is currently no requirement in the United Kingdom for this information to be filed with a UK central authority.”

Mr Richards said Bermuda had never accepted recommendations from the UK “blindly or unthinkingly”.

“That is not the Bermuda way,” he said. “The Government of Bermuda is fully committed to meeting high standards and international best practice. But we also continue to see it as critical that regulatory regimes remain appropriate, having regard to the particular nature of our business and to the particular risks inherent within it.”

Opposition Leader Marc Bean said the Progressive Labour Party fully supported the Government’s stance on this matter.