The Court of Justice of the European Union (CJEU) ruled that a provision in the Anti-money-laundering directive whereby information about the beneficial ownership of companies incorporated within the member states is accessible to the general public is invalid. According to the CJEU, public access to beneficial ownership information represents a serious infringement of the fundamental rights to respect for private life and to the protection of personal data under Articles 7 and 8 of the EU Charter of Fundamental Rights.
Filippo Noseda, a partner at Mishcon de Reya, commented: “Today’s judgment represents a victory for data protection and the Rule of Law in an extremely politicised context. Our research shows that the European Commission believed that providing indiscriminate access to sensitive personal information on the ownership of companies to the public at large in the age of the GDPR was disproportionate and unacceptable... Nobody should engage in money laundering or terrorism financing. However, the fight against crime must be conducted respecting the fundamental rights of compliant citizens. Nobody would condone search and entry powers without judicial scrutiny. In this country and abroad, there is a healthy debate in relation to the data protection implications of privacy-invading technologies deployed by e-commerce platforms, employers, the police or the intelligence community. However, when it comes to beneficial ownership of companies and bank accounts, high-profile public campaigns run by highly organised and single-minded transparency campaigners has succeeded in stymying the debate about ends and means, and the principle of proportionality, which is at the core of the Rule of Law. Today’s judgment confirms that transparency campaigners were wrong in pursuing a single-minded approach and that public society needs a balanced debate over issues that raise data protection implications.”
UPDATE:
- 281122 - the Financial Times (£) writes the CJEU ruling ending the era of public registers will result in returning to an "era of corporate secrecy."
- 291122 - WealthBriefing reports rating agency Moody's criticises the CJEU ruling.
- 011222 - Additional commentary from Pinsent Masons and DLA Piper.
What is this page?
You are reading a summary article on the Privacy Newsfeed, a free resource for DPOs and other professionals with privacy or data protection responsibilities helping them stay informed of industry news all in one place. The information here is a brief snippet relating to a single piece of original content or several articles about a common topic or thread. The main contributor is listed in the top left-hand corner, just beneath the article title.
The Privacy Newsfeed monitors over 300 global publications, of which more than 5,750 summary articles have been posted to the online archive dating back to the beginning of 2020. A weekly roundup is available by email every Friday.
