The French Constitutional Council has made amendments to the public register of the beneficial owners of trusts, set in place by the French government after the Panama Papers scandal in April of this year, the French daily newspaper Les Échos reported on Monday 24 October.
This follows a priority constitutionality question submitted by an American national resident in France, the newspaper explained, as the publication of the register had the consequence of divulging her testamentary intentions. She slammed this as an infringement of her privacy. The publication of the register was consequently suspended until the Constitutional Council took position.
It has now done so. The Constitutional Council considered that the measure does constitute an infringement of privacy which is manifestly disproportionate with regard to the objective pursued.
In July this year, the European Commission proposed that the member states publish certain information from the registers of the beneficial owners of businesses and certain trusts (which engage in commercial activities). The information on the other trusts will be included in the national registers available to parties with a 'legitimate interest', as provided for by the fourth anti-money laundering directive. This will apply, in particular, to family and charity trusts. Negotiations are still underway within each institution. (Original version in French by Élodie Lamer)