A constitutional clash between Westminster and Tynwald was this week averted.

There was a real danger that the UK would impose a law on the island to force it to make its register of beneficial owners public.

While that in itself might have had big implications for the island’s finance sector, the bigger issue was the constitutional one - that the UK could use its power to overrule the will of Tynwald.

Chief Minister Howard Quayle praised the efforts of the Manx government in detailing the island’s cooperation with sharing beneficial ownership information, work which was recognised in a debate in the House of Commons.

He also welcomed the withdrawal of an amendment to a Bill, which could have seen the island and the Channel Islands being legislated for if the governments failed to introduce a public register of beneficial ownership.

An amendment to the UK’s Sanctions and Anti-Money Laundering Bill, if approved, would have extended Dame Margaret Hodge’s own amendment to include not only the British Overseas Territories (such as the British Virgin Island and the Cayman Islands) but also the Crown Dependencies - the Isle of Man and Channel Islands.

While the government agreed not to oppose the move to impose conditions on the Overseas Territoriess, Foreign Office Minister Sir Alan Duncan stated the Crown Dependencies did have central registers available to tax authorities.

Following this, and a further plea from the government minister, Labour MP Helen Goodman agreed not to move a motion on her amendment, avoiding a constitutional crisis in the British Isles, which had previously seemed inevitable.

On Monday, Mr Quayle led a Manx government delegation to London where concerns over the constitutional implications of overstepping Crown Dependencies’ right to self-governance were raised with MPs.

Mr Quayle said: ’I am encouraged that the constitutional position of the Crown Dependencies has been respected.

’We welcome the position the UK Government took on our behalf and their support in proposing a new amendment, although this was ultimately not allowed to be tabled.

’A number of MPs spoke during the debate to acknowledge the importance of the island’s status as a self-governing nation with our own democratically elected parliament and laws.

’There was also recognition of the Isle of Man’s efforts to combat serious financial crime and the fact that our central register exceeds current international standards and can provide law enforcement authorities with beneficial ownership information within one hour in urgent cases.’

These efforts were noted in a written answer to the House of Commons by Ben Wallace, MP for Wyre and Preston North and minister of state for security, who said: ’The Isle of Man’s [beneficial ownership] register is nearing completion (81%), in accordance with the agreed time frame for full population by June, 30 2018.’

Gavin Robson MP added that all ’forthrightly, earnestly and efficiently provide information to our law enforcement agencies within hours, when it is requested’.

Commitment

The island committed in 2016 to enhancing arrangements for providing information on the beneficial ownership of companies which saw an exchange of notes with Crown Dependencies and several British Overseass Territories, firstly after six months and then annually.

While the island avoided the public registry this time, it is believed the island will eventually have an open public register, which Mr Quayle has said the island would do, providing it occurs in line with other jurisdictions so as to create a level playing field.

Constitutionally, the Crown Dependencies are not part of the UK, are not overseas territories and the basis for the relationship with the UK is Her Majesty the Queen as head of state, not through Britain’s colonial past.

Crown Dependencies create independent domestic legislation, however primary legislation does require royal assent.

Unlike most countries, the UK does not have a codified constitution, meaning it only exists in tradition and legislation, not one single document.

As such the UK government is responsible for the defence and international relations of Crown Dependencies only as a result of the relationship with the head of state.

It is therefore acknowledged, though not recognised in law, that Westminster does not legislate for the Crown Dependencies without their consent.