Speaking via a video link at the Guernsey Financial Services Commission’s annual conference, he also criticised fellow MPs Andrew Mitchell and Dame Margaret Hodge for spearheading a campaign to try to force the measures on Crown Dependencies.
Both islands have a private register in place – available to law enforcement authorities by request.
The staunchly pro-Brexit politician also said he expected a ‘flood of people’ to pour into Guernsey if Labour leader Jeremy Corbyn ever became Prime Minister.
He said: ‘I think we should stick to the constitutional arrangements. The Channel Islands have particular constitutional arrangements which this legislation sought to override, and I think that is a mistake.
‘If you override conventions of this kind you essentially have arbitrary law. In truth, we shouldn’t be legislating for you in this way at all. So, I think the primary argument is a constitutional one rather than one of explaining what you do is fine regardless.’
Last year, it was reported that there had been an increase in the number of wealthy Brits inquiring about moving to Jersey and Guernsey. The rise was attributed to a higher likelihood of Jeremy Corbyn becoming Prime Minister.
‘I think the Channel Islands could become even more popular in the event of a Corbyn government,’ Mr Rees-Mogg said.
Speaking to the conference, he added: ‘I think you shall have a lot of people coming to live in Guernsey if Jeremy Corbyn gets elected because everybody will want to come in.
‘I think the prospects for a flood of people applying to live in Guernsey will be enormous.’
