The St Helena Government (SHG) has released the draft Companies (Amendment) Bill 2024, which aims to establish a Publicly Accessible Register of Beneficial Ownership (PARBO) for companies registered on the island. This register would disclose the identities of individuals who ultimately own and control these companies, even if they are not the legal owners on paper.
The primary objectives of this bill are to prevent money laundering, tax evasion, and terrorist financing. It seeks to address the lack of a modern framework for regulating financial services by serving as a preventive measure against illegal financial activities through the Company Registry in both the short and medium term.
The proposed changes have four main purposes: enhancing national security and anti-corruption efforts; protecting individuals and businesses from fraud; improving economic wellbeing by supporting growth in digital, financial, and professional service sectors; and complying with a draft order issued by the UK Government to all Overseas Territories to implement a PARBO.
An explanatory note accompanying the draft bill provides details about its background, rationale, impacts, and implications. The SHG encourages feedback on this document before it is debated by Legislative Council next month. Both documents can be accessed on SHG's website.
Key elements of the proposed PARBO include defining beneficial ownership in line with UK standards from the Companies Act 2006. This includes requiring companies registered in St Helena to submit information about their beneficial owners to the Registrar. Such information will be publicly accessible unless there is proof that disclosure could harm an individual due to factors like fraud or violence.
Hon Mark Brooks, Minister for Treasury and Economic Development, commented on these developments: "This is the first in what is anticipated to be a series of changes linked to SHG’s strategic journey to reform St Helena’s money laundering prevention and detection laws."
Brooks emphasized compliance with international regulatory standards set by bodies such as the Financial Action Task Force and Organisation for Economic Cooperation and Development: "The aim of reforms are...to protect St Helena...from significant risks posed by illicit finance activities."
He also highlighted potential benefits for St Helena's economy: "An additional aim...is ensuring St Helena can benefit from growth in its financial service...sectors."
Business owners are encouraged to engage with government officials regarding how these changes may affect them. Feedback can be submitted via constituent members or directly through email correspondence with Alexandria Thomas at alexandria.thomas@sainthelena.gov.sh.
A public drop-in session will take place at Castle's Economic Development Office on November 22nd from 12:30 PM until 4 PM.
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