The following text is an extract from the Land Reform Consultation.
The concept of ownership is central to how the land of Scotland is used. The ownership of land, or rights in land, conveys the right on the owner to determine how the land is managed and who has rights to use that land, subject to the statutory provisions that govern land use and access.
In Scotland the legal right of ownership in land is registered in either the Land Register of Scotland or in the General Register Sasines. Further information on the Land Register of Scotland and Register of Sasines can be found here;
https://www.ros.gov.uk/about-us
Ownership rights can be held by individuals or by companies, trusts, statutory bodies and other organisations and bodies that have a legal persona. As result of the different ownership structures that can be used to own land it can prove difficult to establish the individual, or individuals, who makes the decisions on how land is used and managed.
The Review Group highlighted that there are particular issues related to traceability and accountability of some legal bodies based overseas that own land in Scotland. This is linked to a wider concerns expressed by the UK Government and the EU about the traceability and accountability of corporate bodies in relation to fraud, tax avoidance and money laundering.
The review group recommended:-
“that the Scottish Government should make it incompetent for any legal entities not registered in a member state of the European Union to register title to land in Scotland, to improve the traceability and accountability in the public interest.”
The issues connected to the trust and transparency of corporate bodies has resulted in the UK Government introducing to Westminster the Small Business, Enterprise and Employment Bill. This Bill includes provisions that, if enacted, will require companies registered in the UK to set up a register of beneficial ownership. Further information can be found here:-
http://services.parliament.uk/bills/2014-15/smallbusinessenterpriseandemployment.html
https://www.gov.uk/government/collections/small-business-enterprise-and-employment-bill
The Scottish Affairs Committee at Westminster have also been holding an inquiry into land reform in Scotland and have taken evidence on the issue of the traceability and accountability of landowners. Further information can be found here:-
http://www.parliament.uk/business/committees/committees-a-z/commons-select/scottish-affairs-committee/news/financial-impact-land-ownership/