Premier Smith 'out of touch' with reality' – Hon Julian Fraser RA
The revelations have caused ripples across the globe and are believed to have far reaching implications for territories like the Virgin Islands as developed countries take action to clamp down on what is being thought of as hiding money in overseas tax havens.
“My view... is that the Premier is woefully out of step with the international players in this league, as he consistently underestimates their capabilities,” said Honourable Fraser reacting to the news.
According to Honourable Fraser, the Premier underestimates Prime Minister David Cameron's commitment to the Developed Nations' interest and the tenacity of the International Consortium of Investigative Journalists (ICIJ) and its commitment to the rule of law and social justice.
“He underestimates the Human rights group, Global Witness' determination to see to donor monies now being lost to the continent of Africa because of money laundering and tax fraud is recouped. In other words, the Premier is out of touch,” he said.
Focus back on the VI
Honourable Fraser said the whole issue of the VI being front row and center of money laundering, aggressive tax avoidance, and being a tax haven is back.
“Virgin Islanders must be concerned about the future of this territory from many fronts, this one on financial services in particular, given the many warnings, the sequence of missteps, followed by inaction on our part.
He said the Premier will have no other choice but to “argue the facts” as a defence and in an attempt to distinguish the facts from the circumstances.
Uncomfortable position
Honourable Fraser said that it is an uncomfortable position from which to write on this latest topic regarding the ICIJ's April 3rd 2016 release of the leaked records, from a little-known but powerful law firm based in Panama, Mossack Fonseca, that has branches in Hong Kong, Miami, Zurich and more than 35 other places around the globe, “given that I am yet to hear what Premier Dr Smith has to say about it.”
Summing up what was said of the territory in the reporting, Honourable Fraser said the records in the reporting's indictment of the Virgin Islands includes but are not limited to the fact that: "The documents make it clear that major banks are big drivers behind the creation of hard-to-trace companies in the Virgin Islands, and other offshore havens. The files list nearly 15,600 paper companies that banks set up for clients who want to keep their finances under wraps, including thousands created by international giants UBS and HSBC".
The disclosures point out that Mossack Fonseca is one of the world’s top creators of “shell companies, corporate structures that can be used to hide ownership of assets". Honourable Fraser said that this is exactly what Prime Minister Cameron wrote to the Premier Dr Smith along with nine other Dependencies and Overseas Territories about in May 2013 ahead of the June G8 Summit. “Evidently, given that our Premier has failed to establish the beneficial ownership register, and companies such as Mossack continues to do business as usual, is a clear indication that the Premier doesn't get it,” said Honourable Fraser.
Industry reactions
When this news site contacted Managing Director and Chief Executive Officer of the Financial Services Commission Dr Robert A. Mathavious he declined to comment, saying that as regulator he is not allowed to speak on the issue.
“I am the regulator and therefore I cannot be speaking on this matter,” he said.
CEO of BVI Finance Julien N. Johnson said the Premier's Office was dealing with the issue and that we should contact them for a comment as he would not be offering one.
Calls and messages to Premier Dr The Honourable D. Orlando Smith for a comment on the issue proved futile up to post time.
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43 Responses to “Premier Smith 'out of touch' with reality' – Hon Julian Fraser RA”
http://www.bbc.com/news/uk-35965855?intlink_from_url=http://www.bbc.com/news/live/business-35944316&link_location=live-reporting-story
It is my belief that because of this secrecy, information leaks will likely continue to occur, more names of powerful people could be exposed to more suspicion and the BVI's offshore financial sector could be in for still more negative press. The world is watching to see what will happen next. Will the BVI and other jurisdictions be blacklisted by more countries as a result? What will be the ramifications for the average BVIslander?
How can any government in the world possibly know if there isn't more information already in journalist's hands and that they (journalists) aren't just biding their time before dropping the hammer yet AGAIN?
A Canadian journalist working for the Toronto Star was denied entry to the territory yesterday. I believe it is rather pointless to close the barn door after the horses have bolted. The Panama Papers are already out there for the world to see! The Toronto Star will likely send somebody else and now that at least one reporter has been given the boot, many others will follow. As a result of deporting the reporter, the PERCEPTION is likely to be that the BVI has much to hide. This is the kind of thing journalists wait their entire careers to dig into and expose. NOTHING will stop them now.
In 1974, Washington Post reporters Woodward & Bernstein, with a great deal of help from "Deep Throat", (AKA William Mark Felt – former associate director of the FBI) who leaked a pile of information to them, which resulted in exposing the whole Watergate scandal and bringing down Richard M. Nixon. Does anyone really believe the press can or will be stopped or that more leaks can't possibly happen? If two journalists and a mole can take down the President of the United States, what do you think our chances of stemming the tide will be?
Look at the whole Wikileaks thing! Where there are people involved, leaks will happen and no cybercrime law or secrecy act is going to stop them if they feel they are on the side of right.
There is nothing wrong with being named as a beneficial owner of an offshore company in and of itself. There are many (legal and legitimate) reasons to own one or even several offshore companies. Hiding monies from the taxman, however, is wrong. If you don't want to be exposed, don't hide your money from the taxman.
Freedom of the press and freedom of speech may not be such a big deal here these days (as the ongoing censorship of print media proves), but rest assured that it is a VERY BIG DEAL elsewhere on this side of China, Russia, and North Korea. There are those who would be willing to die for their right to freedom of speech and for freedom of the press in particular.
I posted a message to a different online newspaper yesterday regarding this topic. My message was initially posted and then removed. Another online newspaper routinely won't post anything I write if it is even remotely associated with politics.
Clearly, censorship is alive and well in the BVI. Freedom of the press, freedom of expression and freedom of speech sadly are not. There was nothing defamatory in my post. I just stated my opinion. Nobody is obliged to agree with me or even read it for that matter. I suppose pointing out what should be obvious to an intelligent 5th former is considered taboo.
Yet, neglects to mention that it also has an office in the BVI (since 1987 apparently, merely a year after it was launched in Panama):
https://en.wikipedia.org/wiki/Mossack_Fonseca#British_Virgin_Islands
I wonder why the omission, especially given that the BVI's name is front and centre in the international press now for allegedly incorporating the lion's share of businesses and shell corporations. Hmmm... prominent in the press, MF branch here and Jeremy Corbyn and others lobbying Cameron in the UK for 'direct rule' over British Overseas territories (think T&C circa 2009). Pickering only last month sounded a warning about waking up and finding the Finance Minister may not be our Premier... Perhaps those in charge know more than they are letting on.
Brace yourselves SS BVI; all it took for T&C direct rule was a C of I pointing to skulduggery and nepotism in government contracts, projects and affairs (and the T&C governor standing up for the people and allowing the Commission of Inquiry).
suggest you are out of touch. Some people don't like being victimized because of deliberately set up hysteria,
all because some people want privacy in their lives and in their relationships with their banks. Is that too much
to understand? The US and UK are engaged in a sort of terrorism against privacy. Everyone who demands privacy
is not a criminal. And the word 'criminal' is relative - it is based on a nations laws which are subjective at best.
The BVI tries to be fair but is being bombarded by crap from the big Gov. It trickles down to the banks and people.
Political posse crew. Doc, you have no clue what is going on. Doc, wake up and open your eyes. Always keep a big rock in your left hand Doc. Your party is making you look bad. Sometimes we don't see things that others see.
Embargoes,wars,police killings,poisoned food and water,medical experiments,innoculations of infants,miseducation and no education, laws encouraging single family households,mass incarceration of black men,drug addiction,,overthrowing governments, Pugh Garleys ,few of the many methods of modern depopulation and economic dependency.Note the recent not to be corrected "error" on the BVI passport .
This has nothing to do with politics. Wake up! Your country and life as you know it is under attack. Support your Gov for the stormy ride as one people of the BVI.
For example they are alleged to have provided a ninety year old natural person to act as front beneficial owner to withdraw funds from a bank when the true beneficial owner was a young woman who didn't want to have her identity known. That would be illegal in many places.
For example, they are alleged to have backdated documents as a matter of course. Depending on the precise circumstances, there is a high risk that backdating involves fraud.
For example, they are alleged to have dealt with people subject to sanctions without really doing any meaningful dd. They say that they are just used car salesmen and don't have anything to do with who buys the car, but that isn't the way the AML regs work.
Can we have some kind of official response Mister Doctor Premiere?
Your Premier out of touch.. Frazer right.. Stop change the subject. You all think you could chase people from landing at the airport and this whole thing will go away. Man up, the Premier got M & M doing a bunch ah crap and you here wasting people's time changing the subject. Financial Services need a whole new direction and your Premier ain't got it. Frazer need a chance.