B.V.I. Wednesday, February 25 – Premier and Minister for Finance Honourable Ralph T. O’Neal, OBE today addressed concerns that the Virgin Islands (UK) will be a target for new regulations following statements by leaders of major European Union (EU) countries, including the United Kingdom Prime Minister.

These have included references to the need to list uncooperative financial centres and tax havens and to impose sanctions against them, as part of a series of measures to deal with the global financial crisis. 

The Premier said “the BVI has a solid track record as a well-regulated, transparent and cooperative financial centre.” He noted too that following the signing of the BVI’s Tax Information Exchange Agreement (TIEA) with the UK in October last year, the UK’s Financial Secretary, Stephen Timms MP, commended the BVI for the leadership demonstrated in the area of tax policy and and its potential to strengthen our reputation for good governance in financial matters. 

“Given this and the robust regulatory framework within which our financial services sector operates, I do not see how we could be included on such a list,” he said.

According to the Premier “when the BVI signed up to the Organization for Economic Co-operation and Development (OECD) Principles of Transparency and Exchange of Information in 2002 Government made a lasting commitment, one which has been consistently honoured to date.” 

“We jealously guard our solid reputation as a leading financial services centre,” he added, noting that “this depends in large part on our ongoing compliance with international regulatory standards and we do not intend to change that approach.”

The Premier cited recent instances in which the Territory has received positive international attention. “In November last year, the OECD’s Director of Tax Policy Administration, Mr. Jeffrey Owens, listed the BVI as one of the jurisdictions that was fully compliant with the organisation’s transparency standards.” 

Honourable O’Neal added that “the BVI has also received a favourable report from the Caribbean Financial Action Task Force, recognising the Territory’s compliance with recommendations designed to fight money laundering and terrorism.” 

He further identified the signing of TIEAs with the UK and Australia, adding to the one previously signed with the United States, as examples of the BVI’s commitment to transparency since the agreements provide for the full exchange of information on request in both criminal and civil tax matters.

The BVI’s attitude in this policy area was applauded by the Australian Assistant Treasurer and Minister for Competition Policy and Consumer Affairs, Mr. Chris Bowen, who said, “the BVI’s co-operation in fostering these international standards of transparency and exchange of information enhances its reputation as a globally integrated and responsible financial centre.”

The Premier pledged the Government’s ongoing commitment and continued cooperation with international regulatory bodies and to work hand in hand with the Financial Services Commission to ensure that the BVI retains the unique balance, supporting an entrepreneurial and successful financial services community operating within a robust and co-operative regulatory framework. 

The financial services industry is one of the BVI’s main economic pillars.