FSC Credited for Helping to End on and Offshore Distinction   

~~Adz:Left~~ TORTOLA, B. V. I- Executive Director of the BVI International Finance Centre (IFC) Mrs. Lorna Smith has credited the Financial Services Commission (FSC) for its work in the international arena which has ensured that the distinction between onshore and offshore financial centres is increasingly acknowledged as outdated and irrelevant.

That milestone was achieved recently when the International Monetary Fund (IMF) formally acknowledged the fact that the distinction between the two centres was no longer important.

The IFC Executive Director said that from its initial interaction with various international organisations, the FSC has led the call for jurisdictions to be judged for the quality of their regulation rather than whether they are based onshore or offshore. The International Monetary Fund’s recent statement, she added, acknowledges that fact for the first time.

“We are immensely grateful to the FSC for pursuing this course. Our Territory is recognised for maintaining a robust regulatory regime, and this is a testament to the work which the FSC has undertaken in the international arena,” Mrs. Smith said.

“The ending of the distinction between onshore and offshore financial centres will reinforce the Territory’s overall reputation,” she further noted. The IMF’s decision to integrate the offshore financial assessment programme with the financial sector assessment programme has effectively ended the earlier distinction between on and offshore financial centres.

In its statement announcing the change, the IMF commented that adherence to all four international standards among Offshore Financial Centres (OFCs) was broadly comparable or better, on average, that other countries. The merging of the two assessment programmes also means that it will now be unnecessary for the IMF to maintain a separate list of OFCs, which it admits has become increasingly difficult to justify in the face of globalisation.

The BVI International Finance Centre has responsibility for the marketing and promotion of the Territory’s financial services industry. Among other regular duties, it is also in charge of managing the Territory’s reputation as a well regulated jurisdiction for financial services.