Daily Mirror (Northern Ireland)
RULING SHIELDS RICH CORRUPT
Pity the poor fraudsters, money launderers and terrorists who might have their privacy invaded when they set up a limited company.
That seems to be the attitude of the European Court of Justice, which has ruled that their right to privacy overrides other concerns, like public safety.
The case hinged on whether the public has a right to know who has ultimate control of limited companies – so-called beneficial ownership.
The European Court, presided over by Belgian judge Koen Lenaerts, declared that “the general public’s access to information on beneficial ownership constitutes a serious interference with the fundamental rights to respect for private life and to the protection of personal data”.
So if you’re thinking of putting your savings into an EU bank or investment company, say, you won’t have any right to find out who owns it, making due diligence impossible.
Dame Margaret Hodge, who chairs the cross-party Anti-corruption Committee, called the ruling “a terrible blow”.
Maira Martini of Transparency International said: “Access to beneficial ownership data is vital to identifying and stopping corruption and dirty money.”
Graham Barrow, an expert on companies and corruption, was appalled.
“According to today’s European Court of Justice ruling you can voluntarily choose to register a company, get the benefit of limited liability, gain advantageous tax treatment and still retain the right to anonymity,” he tweeted.
“Here’s my suggestion. If you want the right to privacy, incorporate an unlimited liability company, don’t expose others to your debts if it fails, don’t get favourable tax treatment, and keep your details entirely confidential. Otherwise, society should rightly expect a quid pro quo.”