‘Premier must engage US on Money Laundering report’ – Hon Fraser
“My unsolicited advice to the Premier is that he engages the United States State Department at the highest possible level in discussions regarding their concerns with our Financial Services, and with the agreement of the British Government he seeks to resolve what appears to be significant differences,” said Honourable Fraser in an exclusive interview with Virgin Islands News Online.
He made the comments in light of a damning report some days ago which highlighted the territory’s potential for money laundering due to a number of factors, one of which is the use of the US dollar and another its proximity to the US Virgin Islands.
“Prudence dictates that given the current International focus placed on the global offshore money market, caution must be exercised when speaking of the British Virgin Islands and the role it plays in the industry,” said Hon Fraser.
“Nonetheless, when the leading nation of the financial world speaks with concern of BVI's position in this market, as a leader, I am left with no recourse but to address the matter, and address it with the greatest of candor,” he said.
US not convinced VI doing enough to combat money laundering
“When the United States State Department's 2015 International Narcotics Control Strategy Report says, "the BVI’s proximity to the US Virgin Islands and the use of the US dollar for its currency pose additional risk factors for money laundering", it says a lot without saying anything. It is up to us as leaders to understand the subliminal message being sent,” he said.
“One must now ask, why are we being reminded that we use the United States dollar as our currency while at the same time being cited as a country whose behaviour poses a direct threat to their economy. Money laundering is a very serious offense, and it is among the number one reasons for the upheaval in the Global Financial Markets today, and the BVI is aware and is wrestling with combatting it from our shores. However, it would appear that the United States is not convinced,” said Honourable Fraser.
The senior legislator Fraser said the report's conclusion is evident that the US believes there is a natural exploitation of the VI's offshore financial services, given that its unique share structure does not require a statement of authorised capital, coupled with the lack of mandatory filing of ownership information pose significant money laundering risks to the territory.
Added to that is their further contention that the VI is a favoured destination for registering shell companies that can be established for little money in a short amount of time.
“I note with care that in the same report, however, when referring to drug trafficking the BVI is not singled out as was the case with Money Laundering, but rather lumped with other countries as a regional problem for the United States, but most importantly, is their apparent readiness to accept it as a work in progress by concluding that BVI authorities work with regional and US law enforcement agencies to mitigate the threats," said Honourable Fraser.
“This level of comfort I believe comes from the fact that they are involved in the mitigation of a threat to their homeland in the case of drug trafficking, but clearly not the case in money laundering,” he said.
Losing use of US dollar not an option
Honourable Fraser said the VI is unique in the Caribbean in its geography vis-a-vis the United States which cannot change, "and also in our relationships with the Government of the United States, and these arrangements must be protected if we expect to survive. Losing the use of the US dollar as our currency is not an option, and even though of less significance our immigration privileges are not to be sacrificed either."
"My sense from this report is that there is need for serious dialogue, and more importantly, cooperation. I am fully aware that the very first Tax Information Exchange Agreement to be signed in 2002 was with the USA under the VIP Administration, and more recently in 2014 this NDP Administration signed Foreign Account Tax Compliance Act with them. Obviously this is either not working, or it is not enough,” he said.
“Sitting and hoping against retaliation from the US as was the case with France, which blacklisted the territory since August 2013 with no apparent end in sight, or to allow them to continue writing unfavourable reports on us similar to what is being done regularly by the International Consortium of Investigative Journalists, is poor leadership which could only lead to disaster,” said Honourable Fraser.
Premier Smith dismisses concerns
Asked about the revelations in the report regarding the VI at a press briefing on March 27, 2015 Premier and Minister of Finance Dr The Honourable D. Orlando Smith said, “It is true that the BVI and other Caribbean countries are on that list. It is also true that the United States and the United Kingdom and several other major countries are on the list.”
“So what I am saying is despite all of the measures you put in place, there will be suspicious activities reported in all countries and we of course have to do our best to make sure that our laws are in place to prevent irresponsible activities on the part of whoever and that is what we are doing. That is why we have a record of having good regulations in the financial services sector. That is why the banks are being [stricter] when it comes to establishing accounts,” said Premier Smith.
See earlier report here:
http://www.virginislandsnewsonline.com/en/news/vi-on-us-money-laundering-list-report
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29 Responses to “‘Premier must engage US on Money Laundering report’ – Hon Fraser ”
they became so holy.Is it because some of these countries are doing well without their divine help they are
into money laundering.Remember iran/contra scandal,air america,the plot to kill fidel castro,the overthrow
of salvador allende and the list goes on and still going on.
Because someone makes allegations does not necessarily demand action or a response - very often they're simply attempting to divert attention or a flaw away from themselves.
more often than not, a calm, cool, calculated strategy is needed before acting as is the general attitude of this premier.
Lesson 1). BV Islanders to get visas to come to St. Thomas.
Lesson 2) No more cross border horse movement for horse racing.
Lesson 3) We taking back the Visa Waiver previlidge.
Lesson 4) Suspension of the use of the US Dollar as currency
But none of this would bother the Premier anyway, becaue the French blacklist from August 2013 sure dont seem to bother him.
A. allowing USC to enter on photo copy of Birth certificates, voter cards, driver license.
B. Medical cearance before coming to use our hospital services.
C. Travel authorization before entry.
D. Illegal chartering withourt cruising permits
E. Renting property without trade license
F. Stop Exempting people from WP
G. Going for broke on trust companies and other shell companies.
H. Raping the resources of the VI with out remorse.
I. Manufacturing Social Security Cards for personal benefits
J. Hmmm.