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Premier Smith blasts international media coverage of Financial Services Sector!

- reinforced that the Virgin Islands remains a jurisdiction with the highest standards of regulations & transparency
Premier and Minister of Finance Dr The Hon D. Orlando Smith (left) and Managing Director/Chief Executive Officer of the Financial Services Commission Dr Robert A. Mathavious. Photo: VINO/File
CEO of BVI Finance Julien N. Johnson and Financial Secretary Neil M. Smith. Photo: VINO/File
CEO of BVI Finance Julien N. Johnson and Financial Secretary Neil M. Smith. Photo: VINO/File
Acting Permanent Secretary of the Office of the Premier Broderick Penn and the Offices of the Financial Services Commission. Photo: VINO/File
Acting Permanent Secretary of the Office of the Premier Broderick Penn and the Offices of the Financial Services Commission. Photo: VINO/File
ROAD TOWN, Tortola, VI - Coming out in his strongest defense ever of the Financial Services Sector since the so called Panama Papers data leak, Virgin Islands’ Premier and Minister of Finance Dr The Honourable D. Orlando Smith took to the Parliament, also known as the House of Assembly (HoA), to set the record straight on the sector.

It was on April 18, 2016 at the Eighth Sitting of the First Session of the Third House of Assembly that the Virgin Islands (VI) Leader told the HoA “Madam Speaker we are all aware that VI is home to a Financial Services Industry that is of global pre-eminence. The core of this industry is our company incorporation business which is revered the world over as it is used to facilitate a myriad of international business transactions.”

Dr Smith, who many have suggested struggled to give an adequate response to the unfair attacks on the VI's legitimate business, said: “VI’s corporate structures are used from Latin America to Asia, from North America to Europe and everywhere in between.”

He told the HoA that “the importance of what we do as financial services jurisdiction cannot be underestimated…..you see every man, woman and child in this country is touched in some way by the opportunities and value of the industry to our country. The Government's revenues largely depend on this industry which in turn is spent on our economic and social development.”

Unfair attacks

The second term leader of the ruling National Democratic Party admitted that “perhaps the past weeks have been two of the most turbulent weeks in the history of the Virgin Islands financial services industry.”

“This is because, Madam Speaker, the recent so called Panama Papers data leak has cast International Financial Centres in a very negative light with very particular focus on VI.

What happened?

On Monday April 4, 2016 the International Consortium of Investigative Journalists (ICIJ) started to release a number of media stories resulting from a massive amount of data that was illegally obtained from Mossack Fonseca’s office in Panama.

The media stories allege that offshore companies were used to facilitate criminal activity including corruption, money laundering, tax evasion and the likes.

The stories have dominated the mainstream media - both print, electronic, television and virtually every major news service has carried some version of the stories daily.

While the stories initially focused on Panama and Mossack Fonseca, the VI has been directly implicated as a number of companies tied to the allegations were formed in the VI by the Trust Compan, Mossack Fonseca, according to Dr Smith.

He continued, “Madam Speaker, I am gravely concerned by the issues that the stories raise, particularly if the evidence establishes abuse or misuse of VI structures.”

Facts about the VI Offshore FS Sector- Premier Smith

“The VI has always maintained, and I stated as much in this very House on several occasions, that this jurisdiction is only interested in legitimate business. Indeed this is why we have over the past 30 years built a regulatory regime that is of world class standards,” he said.

“It is, therefore, unfortunate and disheartening that much of the coverage has sought to discredit international financial centres such as the VI and failed to acknowledge the high standards of regulation and transparency are in place – all of which are internationally compliant, and in many cases exceed those in 'onshore centres'.

“But Madam Speaker, we also recognise that there are some specific cases alleging wrongdoing that on the surface appear compelling.

“To this end, I have previously announced and reiterate that the Government of the Virgin Islands will establish beyond doubt whether there has been any circumvention of our regulatory framework.”

Premier Smith said the Financial Services Commission, the regulators who are independent of the Government, have already indicated that as soon they became aware of the allegations, an investigation was initiated. The Commission has a fine reputation as a serious, strong and competent regulator and “I am confident that they will take any appropriate action commensurately.”

“Equally, I should make clear that in addition to the fact that the VI actively investigates issues of non-compliance, we work routinely and regularly with foreign competent authorities to detect, prevent and prosecute illegal activities. This circumstance is no different.

“We strongly believe that if individuals are prepared to lie or cheat their way using a VI company; then the VI will do its utmost to detect and prevent this. We will continue to ensure that our laws are enforced and action is taken transparently when we identify any wrongdoing,” said the Premier.

Erroneous coverage by haters overseas

The Premier told the HoA “regrettably much of the coverage failed to acknowledge the fundamental and legitimate role that the VI plays in facilitating the global flow of capital and investments.”

According to the statement from the VI Head of Government, Premier Smith is nevertheless heartened that some of the coverage readily admits that conducting business using offshore companies is not in of itself wrong or illegal.

“I wish to strongly endorse that notion, so let me be clear; it is neither wrong, immoral nor unethical to own, manage or control VI registered companies.

“Madam Speaker, this Honourable House and the people of the the British Virgin Islands should be confident and proud that that the BVI is a jurisdiction of the highest integrity. That is not just mere talk, but rather a well-known fact.”

One of the important outcomes of the stories is that they have sounded a clarion call for greater transparency in the offshore financial services industry.

In his statement Premier Smith told the people, “I am proud to say that VI far exceeds the pack, including many well developed nations as it relates to transparency. It is a fact that is anchored in a longstanding reality that we are a highly regulated jurisdiction that has complied with every rule set by the international standard setters pertaining to transparency and exchange of information for these companies.”

It is vital to note that Premier Smith told the law makers, hence the world, that “our robust system of regulation promotes the highest standard of conduct among our licensees.”

17 Responses to “Premier Smith blasts international media coverage of Financial Services Sector!”

  • record (19/04/2016, 12:37) Like (4) Dislike (1) Reply
    Finally a strong defense!
  • B Savage (19/04/2016, 13:01) Like (4) Dislike (6) Reply
    You all don't like to hear the truth those EDOMITES HATE how we living FACT. Talking bout dirty money build our hospital smh. EDOMITES coming in sheep clothing they want to make some money with us then watch us fail. To much Black people coming out of big home and big rides big position financially secure. Like "RICO" from Belly they want to drop some type of dime cause, "naw they aint like that chit."
    • Vandal Savage (19/04/2016, 14:32) Like (6) Dislike (1) Reply
      Your damn broken chune is played out now son! Those same 'edomites' are the ones with the money facilitating the very industry that allows the chosen few to elevate their wealth and social status. Now its the Asian money we chasing after - you think the yellow ppl dem care 'bout 'we' either - GTFOH with your vomit.
      • Hebrew Israelite (20/04/2016, 03:42) Like (5) Dislike (0) Reply
        You can tell you definitely the TRAINED DEFENSIVE HOUSE NEGROE AN ABOMINATION TO YOUR KIND. The same masters you revere now trying to take you for ride. Lol serve you right ugh absolute worst.
  • Madness (19/04/2016, 13:05) Like (10) Dislike (0) Reply
    The same highest standards that applied to the Pier Park project no doubt. Is the Premier really going to go forward with its threat that people who lie or cheat using a BVI company will be dealt with when there is so much money at stake? Problem is the system itself has too much of a blind eye.
  • Look Out! (19/04/2016, 13:31) Like (12) Dislike (0) Reply

    Well sah, Rip Van Winkle finally found a bark. I wonder who scripted those words for him, Dr. Macky? This should have been your approach from the get-go; let’s hope it's not to late.
  • cay (19/04/2016, 13:34) Like (2) Dislike (10) Reply
    Well done dr smith
  • Time for change (19/04/2016, 14:59) Like (4) Dislike (0) Reply
    I think the time has come to change the old guard at IFC. New ides are needed to save this sinking ship.
  • Diplomacy (19/04/2016, 15:02) Like (2) Dislike (2) Reply
    All that glitters is not gold. Let us face the facts; diplomacy rules the world. Yes there is some truth to what has been said, and better can always be also done. Let us not become complacent.Continuous vigilance, balance, fairness and honesty in our dealings with each other is needed for continuous improvement.
    There should be no room in this industry for the petty unprofessionalism which sometimes prevail. Give Jack his Jacket and all will be well. BVI needs the industry and the industry needs BVI. It takes two to tango.
  • Xxx (19/04/2016, 15:53) Like (5) Dislike (1) Reply
    Well written speech fly in from london
    • same (19/04/2016, 20:43) Like (4) Dislike (1) Reply
      Whoever wrote the speech is a good speech writer. You did well Doc.
  • Mossfon (19/04/2016, 18:07) Like (5) Dislike (0) Reply
    New guard needed at FSC and BVI Finance, the current crop now tainted, heads need to roll.
  • ex KGB (19/04/2016, 20:09) Like (6) Dislike (3) Reply
    The panama papers were leaked by the US CIA to exposed the dealings of Nuclear Arms Race of Russian President Vladimir Putin and North Korea strongman Kim Jong Un. British Prime Minister David Cameron is collateral damage in the whole mess. Russian billionaire and close associate of Putin has billions of $$ hidden in BVI and our Premier dont know this, money for nukes deal from Un is hidden in BVI n Bermuda n our govt dont know this. This is what happening while our govt is fast asleep.
  • bbc (19/04/2016, 22:21) Like (5) Dislike (0) Reply
    Tis about time he speak up from leaving all to willick
  • hello? (19/04/2016, 22:59) Like (9) Dislike (0) Reply
    I want to hear from Robert Mactavious in all of this...He ishould be the lead spokesman in all of this... Yet I have not heard one thing utter from his mouth....schupesss
  • Boo (20/04/2016, 13:42) Like (1) Dislike (0) Reply
    Woa! Doc woke up!..Someone brewed him a strong cup of coffee and a cold shower and he comes out swinging like Mohammed Ali. Time to tag in Big Mac to smack this one out of the Park. If not we may need some new heavy hitters at FSC. lol


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