Debating the Sanctions and Anti-Money Laundering Bill in Parliament, ministers were forced to give up their opposition due to the possibility of a Commons defeat after nearly two dozen Conservative MPs backed the amendment.
Ministers had originally opposed the bill, stating they did not want to impose rules on British Overseas territories which include the Falklands, Cayman Islands and British Virgin Islands.
Foreign Office Minister Sir Alan Duncan said the Government did not want to damage the “autonomy” of the territories by imposing legislation from Westminster.
However he noted the Government would “respect the will of the House”.
GETTYThe UK will force overseas tax havens to become more transparent in a bid to tackle tax evasioniPhone transfer software
GETTYConservative MP Andrew Mitchell said the bill will 'support transparency and openness'
This amendment reflects a thoroughly good Conservative principle – supporting transparency and openness
He added: "We've listened to the strength of feeling in the House on this issue and accept that it is without a doubt