Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

BVI Supports Initiatives to Fight Financial Crime: Elise Donovan

BVI Supports Initiatives to Fight Financial Crime: Elise Donovan

The description of the BVI in Bloomberg Businessweek bears no resemblance to the innovative and forward thinking jurisdiction into which the BVI has developed over recent decades. We appreciate the corrections that have already been made. However, there are still a number of misleading statements and inaccuracies:


  • The concepts of public registers and transparency are conflated. One does not equate to the other, as recognized by law enforcement authorities. To clarify, the BVI is not against publicly accessible registers of beneficial ownership. Our position has always been that the BVI will adopt such an approach once it becomes the global standard. Currently it is not. Moreover, the BVI shares company beneficial ownership information with both its own and U.K. law enforcement authorities.

  • Throughout the article, it is suggested that the BVI is against transparency stating that the BVI is “one of the most vocal opponents of the worldwide transparency drive.” This is false. The BVI was an early adopter of the OECD’s Common Reporting Standard (CRS) for the automatic exchange of tax information; the BVI adopted and implemented the EU Directive on the Taxation of Savings Income and has signed 28 tax information exchange agreements; the BVI has signed a FACTA agreement with the U.S. and U.K.; the BVI is a member of the BEPS Inclusive Framework; the BVI is a respected and active participant in all relevant international bodies including the Financial Action Task Force and Financial Stability Board regional bodies, the global standard setter for the securities sector (IOSCO) and the Egmont Group, the global grouping of 158 Financial Intelligence Units which share expertise and intelligence to combat money laundering and terrorist financing. The jurisdiction was one of the first movers when it came to anti money laundering legislation which has, in turn, benefited other finance centers. The BVI is therefore clearly and demonstrably a supporter of initiatives to improve international co-operation in the fight against financial crime and the sharing of necessary information.

  • The article states the EU has threatened the BVI with ‘blacklisting’. In fact, the BVI was assessed by the EU alongside 91 other countries, including the U.S., for the purposes of creating a list of non-cooperative jurisdictions. Subsequently, the BVI committed to economic substance requirements and implemented the required legislation. The BVI has been deemed compliant and is not and was never on an EU ‘blacklist’.

  • The representation of the Beneficial Ownership Secure Search system (BOSSs) platform fails to take numerous key points into consideration. For instance, whilst BOSSs is accessible by only two people, this is done for security of the information and to close off access. Those who access it are responding to requests. BOSSs is an innovation that has been widely applauded and recognized by the U.K. Government as a world class example of its type.

  • The reference to loopholes “allowing, for instance, trusts and corporations listed on stock exchanges to escape scrutiny” is inaccurate. Having companies which are owned by listed companies is not a loophole to avoid disclosure of beneficial ownership information. Listed companies have many shareholders. Plus, share registers of listed companies are public documents and therefore easily accessible. The jurisdiction is proud that blue chip companies listed on the world’s major stock exchanges use BVI companies within their corporate structures. As far as Trusts are concerned, again there are no loopholes. If the trustee of a trust is a BVI company it must be licensed by the Financial Services Commission, the BVI’s financial services regulator.

  • The original article stated that the cost to incorporate a company with less than 50,000 shares is $450 with the cost to renew the same. This has now been corrected to state that this is only the Government fee. However, it must be noted that the government fee can never be the total cost of incorporation. A BVI business company can only be incorporated through a licensed corporate services provider which must, through its own due diligence procedures, identify and confirm the beneficial owner, unlike the UK for example where no such verification take place. If the provider fails in this duty it can be severely penalized, with the removal of its license as the ultimate sanction. This means that the actual cost of incorporation in the BVI is around $1500 with the cost of renewal around $700 – significantly more than in the U.K., for example. The article further states that the BVI hosts around a third of the world’s offshore companies. This ignores that as of 2017 many more companies were registered in London (3.9m); Hong Kong (1.34m) and Delaware (1.18m).

  • The mentions of different options for a public register in the BVI are hearsay. The BVI Government ultimately decides its position on public registers, no one else.

  • Instead of utilizing the content provided by those interviewed who are practicing in the BVI today, the reporter has instead disproportionately relied on tales from the 1970s when the global financial regulatory architecture was in its infancy and attitudes were very different. The information significantly skews the article presenting the BVI in a wholly negative light, taking no account of the contribution the BVI now makes to the global financial regulatory framework.

The BVI was leveled by two catastrophic category five hurricanes only 18 months ago. It should be commended for getting so quickly up on its feet, albeit with continuing infrastructure challenges which we of course recognize and will continue to remedy. We, in the BVI, always try to engage, to inform and educate, even with those who have a different point of view.

Elise Donovan
Chief Executive Officer, BVI Finance

AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
Miliband Sets Climate and International Law at Centre of UK Diplomacy
Czech Central Bank Governor Rejects Early Euro Entry and Rate-Cut Pressure
Trump Readies New Tariffs as Temporary Global Levy Nears Expiry
Vivienne Westwood Casts Cicciolina, 74, in Its New Autumn Campaign
Dejavu: Germany’s Military Expansion Reshapes Europe’s Strategic Balance With France
Morgan Stanley Builds a Wall Street Lead in AI Infrastructure Finance
High Prices Push Coffee Drinkers Toward Whole Beans and Home Brewing
Trump Draws Boos and Podium Scrutiny at Spain’s World Cup Triumph
Brilliant move: Péter Magyar Moves to Nominate Chess Grandmaster Judit Polgár as Hungary’s President
Spain Defeats Argentina in Extra Time to Win Second World Cup
Current AI Seeks to Build an Open Global AI Infrastructure Outside Big Tech Control
Germany’s Economic Malaise Reopens the Sunday Shopping Debate
Proposed U.S.-Saudi Nuclear Pact Could Permit Limited Uranium Enrichment Under International Safeguards
Netherlands Declares Water Shortage Emergency After Drought Pushes Rivers to Historic Lows
Why Kentucky Fried Chicken Became KFC—and Why the False Explanations Persist
Ukrainian Drones Strike Wildberries Warehouses Deep Inside Russia
Reported CIA Mission Helped Clear the UAE’s Path to Advanced US AI Chips
Artificial Intelligence Capital Fuels Markets While Governments and Regulators Face Mounting Strategic Tests
China’s Moonshot’s Kimi K3 Narrows the Gap With Anthropic Through Scale, Openness and Lower Cost
The Ledger Will Not Trust on Faith
Trump Administration Pressures Banks to Restrict Financial Access for Undocumented Immigrants
Passenger Bound for Germany Refused to Sit Beside a Woman on a Plane — Then Slapped a Flight Attendant
Ukraine’s Leadership Rift Spills Into the Streets as Protesters Target Army Chief
Ukrainian Drone Barrage Kills Eight and Strikes Russian Logistics Network
The Ten World Cup Finals That Defined Football History
Smartphones Are Getting More Expensive, Sales Are Collapsing, and Even Apple Admits: "Prices Will Rise"
The Monaco Bombing Has Become a Test of Ukraine’s Intelligence Accountability
Leadership Change and Strategic Rivalry Redraw the Political Map
The AI Race Enters Its Infrastructure Era
Britain Nationalises British Steel to Protect Scunthorpe Production and Strategic Supply
French National Assembly Overrides Senate to Pass Historic Assisted-Dying Legislation
Spanish Prime Minister's Wife Ordered to Stand Trial as Corruption Probes Encircle Governing Party
Zelensky Faces Kyiv Protests Over Ousting of Dynamic Ukrainian Defense Minister
Thomas Tuchel Faces Fierce Backlash After Tactical Retreat Costs England World Cup Final Berth
A Quiet Bastille Day: France Grapples with World Cup Heartbreak and Leftover Fireworks
Spain in Ecstasy: "We Feel Unbeatable, We Taught the Whole World a Lesson"
Spain and UK Dismantle Gibraltar Border Following Landmark Schengen Integration Treaty
Hungary's "Puppet" President to Be Ousted, Orbán Fumes: "Democracy Is Dead"
Forget Tinder: The Surprising Platform Where People Find Love
Harvard Astrophysicist to Lead U.S. Scientific Advisory on Unidentified Aerial Phenomena
Emergency Sirens Activated Across Bahrain as Interior Ministry Issues Shelter Directives
World Cup Visitors Turn American Big-Box Stores Into Souvenir Stops
Netflix Weighs Always-On Channels, Bundles and Short-Form Video
Passenger Is Pulled Partly Outside Ryanair Jet After Window Fails Mid-Flight
The AI Invoice Shock: Layoffs Didn't Save Managers Money — They Cost Them More
Concern: Sexually Transmitted Bacterium Among Men Develops Antibiotic Resistance
Passenger Partially Pulled Out of Ryanair Jet After Cabin Window Fails Mid-Flight
Severe Heatwave Drives Dangerous Ground-Level Ozone Pollution Across Two Thirds of European Union
The Physical and Electronic Barriers Disrupting Domestic Wireless Networks
France and Morocco Open World Cup Quarter-Finals as Collina Defends Refereeing
×