TREASURY Minister Anne Craine MHK has today launched a public consultation on proposals to further strengthen the Island’s defences against money laundering and other financial crime. At present all companies registered under the 2006 Companies Act must have a local resident agent to identify the beneficial ownership of the company if this is requested by the regulatory authorities in the course of enquiries. Companies incorporated under the 1931 Companies Act are not required to have such an agent, although many of them are in fact administered by licensed Corporate Service Providers which effectively act as registered agents. The Treasury is proposing to introduce a requirement, similar to that already in operation in Guernsey, for all 1931 Act companies to appoint a local resident agent. In the case of locally owned companies this could simply mean nominating an existing officer or shareholder of the company as the resident agent, at no extra cost to the business. In the case of companies administered by licensed Corporate Service Providers this would simply amount to the Corporate Service Provider acknowledging that they provide services to those companies. As before, there would be no extra costs incurred by the company or the Corporate Service Provider. Minister Craine explained: ‘The current difference in requirements between the 2006 and 1931 Acts creates an inconsistency in the Island’s approach to access to information about the beneficial ownership of companies. The discrepancy means there is a perception, in the case of 1931 Act incorporations, that some companies are weak links in the chain of accountability. This perception creates a reputational risk for the Isle of Man. ‘This is an issue that has been raised by the International Monetary Fund in its assessment of the Island’s defences against money laundering and other financial crime. It is clearly in the best interests of the Island’s economy and our reputation internationally that we maintain high regulatory standards as recognised by bodies such as the IMF.’ The Minister added: ‘To be consistent the resident agent requirement would apply to all Isle of Man companies. For locally owned companies, and those already administered by licensed CSPs, compliance should be straightforward and should not create any additional burden.’ ‘The purpose of the forthcoming consultation, as with all Government consultations, is to gain feedback on the proposal and to gather views to be taken into account in deciding how to progress the matter.’ The consultation paper can be found at http://www.gov.im/treasury/ConsultationDetail.gov?id=250 and http://www.gov.im/ded/ConsultationDetail.gov?id=249 Ends