Backbench MPs say they are determined to force the Crown Dependencies to adopt public registers of the real owners of companies - insisting offshore secrecy is a threat to UK national security.

Labour MP Dame Margaret Hodge and Tory Andrew Mitchell have written to the Chief Ministers of the Isle of Man, Jersey and Guernsey, claiming the UK has sufficient legal powers to intervene.

Their tabled amendment to the Financial Services Bill was expected to be voted through last week only for the UK government to pull the Bill at the last minute.

Chief Minister Howard Quayle said the proposed amendments were ’wholly unconstitutional, unworkable and unenforceable’.

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But the MPs wrote: ’The UK is responsible for ensuring the ’good governance’ of the Crown Dependencies.

’Prospective money laundering taking place through the Crown Dependencies threatens the UK’s national security.’

The island’s central register of beneficial ownership is accessible only by law and tax enforcement agencies.

Mitchell and Hodge said they acknowledged the rigour with which the Crown Dependencies co-operate with British law enforcement authorities and the HMRC.

But they added this was not sufficient: ’Any suggestion regarding the effectiveness of closed registers was completely destroyed by the release of the Panama and Paradise Papers.

’These showed clearly that without public registers of beneficial ownership it is not possible to join up the dots of corruption and malfeasance.’

The Financial Services Bill is likely to return to the Commons soon because it is needed to ensure the continuity of banking regulations in the event of a no-deal exit from the EU.

Mr Quayle said: ’The Isle of Man has never been a colony of the UK. We are a Crown Dependency. Our relationship with the UK is through Her Majesty the Queen.

’We are responsible for our own affairs. We pass our own legislation. As long as we are compliant, we are left alone to govern ourselves.’

He said he fully endorsed the aims of the two MPs, adding: ’We are committed to complying with international standards and develop a global standard of beneficial ownership.

’Should a public register become the global standard then of course we will ensure our compliance.

’The UK’s register is not as well populated as the Isle of Man’s. If you put misleading information on ours you could be fined, or sent to prison and your company struck off.

’There’s none of that in the UK and you can find examples of a Mr D Duck named as director or Jedi as nationality.’