Statement By Premier And Minister Of Finance Dr. The Honourable D. Orlando Smith, OBE: BVI Remains A Reputable Financial Services Jurisdiction

Since the introduction of BVI Financial Services more than 30 years ago in the BVI, this subject has been the 'Sacred Cow' in the House of Assembly or Legislative Council, as it was formerly known.

 

This fact was even reiterated by several Members of the House of Assembly during the Ninth Sitting of the Third Session of the Second House of Assembly on Thursday, September 11, including the Leader of the Opposition Honourable Ralph T. O’Neal.  

 

To paraphrase what the Leader of the Opposition said quite correctly, we cannot afford to play politics with our financial services.

 

I was disappointed to learn about the irresponsible statements made by Representative for the First District Honourable Andrew Fahie in the story headlined: “Prepare the People” – Fahie claims 40% of Financial Services Business May Soon Leave the BVI, published on BVI News yesterday, clearly with the hope of creating fear! 

 

The member, as recently as late last year, bragged about the number of Tax Information Exchange Agreements the previous administration had signed compared to this administration.  Now that tune has suddenly changed and the questions are, “For what and whose gain, and at whose expense?"

 

The member’s claim is not only surprising, but also disturbing. It is this kind of irresponsible pronouncement made by an honourable member and read by the rest of the world that will cause the most damage to our financial services, causing our international standard setters, industry partners and financial services clients to question this Territory's commitment to transparency and adherence to best practices in the industry.

 

Moreover, his uninformed pronouncements have serious implications and reputational repercussions for this Territory, in that it raises issues of confidence in our ‘world-class’ financial services system. 

 

The fact is, from our conversations with the business community, there is absolutely no suggestion that the BVI will see significant numbers of financial services clients and businesses leave the jurisdiction. In fact, some of the initiatives that the Government is engaging will be implemented on a universal basis. Others are emerging global standards that many countries in financial services business has also adopted. This means that there will be limited opportunity for businesses to leave the BVI as a result of our agreement to these initiatives.

 

Financial services remain at the heart of the BVI economy and at the heart of this Government’s agenda for growth. Indeed, the British Virgin Islands has led the way among offshore jurisdictions in best-practice financial legislation and the global fight against financial crime.

 

The reality is, the regulatory environment has evolved significantly over the past five years. Correspondingly, the BVI has evolved accordingly to maintain its place at the centre of the global economy. With the enactment of the IBC Act in 1984, financial services and strong regulation have been fundamental to the success of the BVI for the past 30 years, and will continue to be so for the next 30 years and beyond.

 

We are confident that good regulation is good for business, and firmly believe the BVI will benefit from increased business flows by adhering to global standards and engaging positively with key stakeholders.

 

The BVI continues to expand the range of financial services it provides, in areas such as wealth management, shipping and insurance, for instance, and has successfully invested in strengthening trade with Asia, South America, the Middle East and other key regions.

 

Thankfully, based on the responses to the member’s claim, the people of the BVI are mindful of the importance of this important economic pillar. 

 

In the interest of protecting and preserving the integrity and sound reputation of the BVI, I encourage all of us to be mindful of the messages being relayed, not only locally, but internationally.

 

I will continue to lead the charge to ensure that we diversify and develop our industry, and that we continue to explore and attract new industries to the BVI.