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Summit snubbing doesn't mean VI ‘shut out’ - Premier Smith

- said territory still expects to ‘actively participate’ in discussions on core elements of beneficial ownership proposals by international standard setters
Premier and Minister of Finance Dr The Honourable D. Orlando Smith said the territory still expects to actively participate in upcoming discussions on issues such as beneficial ownership even though the Virgin Islands (VI) was not invited to a recent anti-corruption summit in the United Kingdom (UK). Photo: VINO/File
British Prime Minister David W. D. Cameron was caught on microphone on May 10, 2016 saying that leaders of “fantastically corrupt” countries including Nigeria and Afghanistan will attend an anti-corruption summit in London. Photo: The Telegraph
British Prime Minister David W. D. Cameron was caught on microphone on May 10, 2016 saying that leaders of “fantastically corrupt” countries including Nigeria and Afghanistan will attend an anti-corruption summit in London. Photo: The Telegraph
ROAD TOWN, Tortola, VI - Premier and Minister of Finance Dr The Honourable D. Orlando Smith said that even though the Virgin Islands (VI) was not invited to a recent anti-corruption summit in the United Kingdom (UK), the territory still expects to actively participate in upcoming discussions on issues such as beneficial ownership.

It would have appeared that the VI, along with Panama, were snubbed an invitation to the summit especially in the wake of the explosive Panama Papers leak and the ensuing attacks on the territory’s financial services sector by international news agencies and non-governmental organisations.

Both countries indicated they would not have been attending because they were not invited. The summit on May 12, 2016 brought together leaders of various countries who have committed to tackle corruption in their respective territories, including Colombian President Juan Manuel Santos, Afghanistan President Ashraf Ghani and Nigerian President Muhammadu Buhari.

This news site reached out to the Premier for a response as to why the VI was not invited and what are the possible ramifications of such a non-invite.

Responding through the Director of Communications Arliene T. Penn, Premier Smith said, “Even though the BVI was not present at the Anti-Corruption Summit, we are pleased that the Summit Communique has referred the issue of beneficial ownership to the international standard setters and asked them to develop initial proposals.”

According to Premier Smith, this is something that the territory has been calling for. 

“Once they begin such considerations, we would expect to actively participate in the discussion and help ensure that the three core elements of data security; legal constraints and even and global application are the three pillars on which any such a standard is based,” the Premier concluded.

Despite pressure from the UK, the VI has remained steadfast in its resistance against a beneficial ownership central register being public, saying that this will compromise the integrity of the financial services sector by driving its clients away from the territory.

What is a beneficial owner?

According to Business Dictionary.com, a beneficial owner is an entity that enjoys the possession and/or benefits of ownership, such as receipt of income, of a property even though its ownership (title) is in the name of another entity, called a 'nominee' or 'registered owner'. Use of a nominee (who may be an agent, custodian, or a trustee) does not change the position regarding tax reporting and tax liability, and the beneficial-owner remains responsible.

Following the Panama Papers scandal, where 11 million documents leaked from law firm Mossack Fonseca revealed the names and company details of those with offshore investments situated in so-called tax havens, the Virgin Islands and other financial services jurisdictions came in for malicious attacks from the international press, with a BBC presenter even alleging that the Virgin Islands had built its new Peebles Hospital from ‘dirty money’.

British Prime Minister David W. D. Cameron was caught on microphone on May 10, 2016 saying that leaders of “fantastically corrupt” countries including Nigeria and Afghanistan will attend an anti-corruption summit in London last week.

He referred to “Nigeria and Afghanistan — possibly two of the most corrupt countries in the world.”

Mixed views on VI & Panama snubbing

According to The Times of London, there are mixed views on whether both countries should have been invited to the summit. Robert Palmer, the campaign leader at Global Witness, said: "We think any country or territory that is obviously part of this problem should also be part of the solution."

However, Transparency International's Maggie Murphy warned that countries with poor records on corruption may water down the summit's agenda. "If Panama has not been invited, perhaps it is because of their stated interest in tackling corruption is not yet convincing enough," Murphy said.

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