The BVI Authorities are therefore actively investigating how private information has been illicitly obtained and used to attack the BVI financial services industry which operates in full compliance within international guidelines and the law, according to Premier Dr the Honourable D. Orlando Smith. Photo: VINO/File

According to the Premier, 'The BVI Authorities are therefore actively investigating how private information has been illicitly obtained and used to attack the BVI financial services industry which operates in full compliance within international guidelines and the law'. Photo: VINO/File

Ladies and Gentlemen,
By now you would have heard that information related to the operations of two BVI Trust companies, have been obtained by an international consortium of journalists and have led to widespread reporting of stories in the international media about the BVI Financial Services Industry, many of which are inaccurate.

You are aware that the BVI financial services industry was built over several decades on key principles of integrity, vigilance, accountability and transparency; and in keeping with all relevant international standards. This has led to the international community having full confidence in our jurisdiction, thus the frequent use of BVI companies for a myriad of business transactions.

Indeed, some of the same articles recognise that this Territory has been used overwhelmingly for legitimate financial and commercial activities. Where this has not been the case, we have always collaborated with our international partners.

The BVI Authorities are therefore actively investigating how private information has been illicitly obtained and used to attack the BVI financial services industry which operates in full compliance within international guidelines and the law.

We can assure all our stakeholders around the world that as far as we know this is an isolated incident. There is no indication of contagion or that the breach was in any way systemic. Also, no breach of BVI official databases has occurred.

The BVI is not a secrecy jurisdiction. As a member of OECD Global Forum, we have signed 22 tax information exchange agreements and continue to negotiate with more than 10 other countries. In addition, the BVI shares information when legitimate requests are made by the relevant treaty partners.

We operate effective international cooperation regimes and will continue to assist foreign authorities through our mutual legal assistance processes to ensure compliance with established legal obligations.

After several months of negotiations, the BVI has recently announced its commitment to concluding Foreign Account Tax Compliance Act (FATCA) negotiations with the US Treasury and entering into a similar arrangement with the UK Government.

We recognise that while the overwhelming majority of persons use international financial centres (IFCs) for legitimate purposes, there are those that will seek to abuse the system. Where wrong doing is discovered appropriate enforcement action is and will be taken. We continually review our existing legislative regime to ensure transparency, effective cooperation and compliance with established international standards.

The British Virgin Islands recognises the pivotal role of international financial centres in ensuring global financial stability. We firmly commit to the full and effective implementation of internationally established standards concerning tax information exchange, the combating of money laundering and all other forms of financial crime.

We maintain and robustly defend the position of the British Virgin Islands as a responsible and integrated global financial centre which is internationally recognised for the conduct of valid international business and as a centre for enhancing world trade.

I wish to urge all of you, especially those of you who work in the industry, to be vigilant in your dealings with all stakeholders, safeguard the property of your clients and employers, and protect our jurisdiction.

I stand with my entire Government of the Virgin Islands, and that includes the House of Assembly members, fully committed to ensuring that the financial services industry in the BVI continues to be vibrant and internationally well regarded. We are confident in our industry and our regulatory history and we will aggressively defend the BVI's reputation with all interested stakeholders.

Thank you.