The implications of having a central beneficial ownership register : a Maltese and European Union law perspective

Abstract

“Interested in data?” This was the simple message which led to history’s greatest data leak, dubbed as the Panama Papers, exposed through an anonymous whistle-blower identified only as ‘John Doe’. The aftermath of this huge data leak led to prosecutions, resignations and above all regulation. Following this data leak, international incentives were intensified all aiming at enhancing global transparency in the financial services world. Transparency was given priority both at a boardroom and at an international level. As a result, development at European Union legislative level was put into a momentum. Much has been done, for instance the setting up of a focused Inquiry Committee, known as the PANA Committee, the thorough review of the Fourth Anti-Money Laundering Directive and the movement towards the Fifth Anti-Money Laundering Directive. For the first time, legislators have introduced the requirement for Member States to maintain a central beneficial ownership register. This thesis will analyse elements which constitute the very essence of an effective register, whilst also providing a comparative analysis on the various existing models. The requirements under Articles 30 and 31 of the Fourth Anti-Money Laundering Directive will be analysed in-depth, in order to provide a detailed overview of the minimum elements which shall make up the beneficial ownership register. In addition, such a requirement will undoubtedly give rise to implications, including but not limited to data protection and data quality concerns. Another implication to be explored is that of access to the data. All these implications will undoubtedly affect the register’s implementation. Malta is also obliged to establish such a register and this thesis seeks to provide insight as to the best model which suits Malta’s landscape.