Dr Smith Gov’t warned of need for Plan-B in upcoming ‘UK fight’
The warning was sounded by former VI Ambassador to the UK and European Union, Mr E. Benito Wheatley.
He was at the time addressing those gathered for the British Virgin Islands Tourist Board’s (BVI-TB) Stakeholders' Meeting, held on July 31, 2018, in New York, United States of America (USA).
Mr Wheatley was delivering remarks on, “the future of the BVI Economy and the UK’s decision to impose public registers of beneficial ownership on the Overseas Territories (OTs).”
Mr Wheatley—a Policy Fellow at the Centre for Science and Policy, University of Cambridge—noted, the Government’s position on the matter, is that the VI will not implement a public register until it becomes a global standard.
Imposed
This, position was adumbrated by Premier and Minister of Finance, Dr the Honourable D. Orlando Smith (AL), but according to the former Ambassador to the UK, the two likely (future) scenarios, is that there will either be a compromise between the VI and UK on a public register, or the UK Parliament will pass an Order in Council, to enforce implementation.
The UK Sanctions and Anti-Money Laundering Bill that received Royal Assent on May 24, 2018, requires the OTs to implement public registers by December 31, 2020, or have them imposed by an Order in Council in the UK Parliament.
Mr Wheatley posits, “if a compromise is found, the situation should stabilise,” but if an Order in Council is passed, the VI Government has confirmed it will mount a legal challenge, and “if the Government loses, then we will certainly see an exodus of companies from the jurisdiction.”
2020
As such, Mr Wheatley has sounded the warning to the Dr Smith administration that, “at this stage, the Government should begin drawing up contingency plans for a worst case scenario…Twenty-twenty (2020) is not far off and Brexit negotiations have made the Conservative Government in the UK very fragile.”
Explaining the gravity of the situation, Mr Wheatley told those in attendance, “…there is a very real possibility that there could be a General Election (in the UK), either in the Fall of this year or the Spring of 2019.”
He suggested, while the VI “is disappointed with the current UK Government’s capitulation on public registers, they at least seem prepared to discuss how to mitigate any negative impacts.”
According to Mr Wheatley however, “a new Conservative or Labour Government could come to power that is completely unsympathetic to OTs and place them under undue pressure in relation to financial services.”
Uncomfortable Questions
As such, Mr Wheatley is adamant, the VI urgently needs to begin rebalancing its economy, to reduce the Territory’s vulnerability to the external pressures on the financial services industry.
“The reality is that the pressure is not going to go away anytime soon…In fact, it is only going to increase.”
Mr Wheatley has since questioned, “…if financial services were to take a severe blow, how would the VI Government make up for a loss of nearly $135 million in government revenue?”
According to Mr Wheatley, “these are very uncomfortable questions, but they must be addressed.”
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12 Responses to “Dr Smith Gov’t warned of need for Plan-B in upcoming ‘UK fight’ ”
Moreover, the BVI is a resource-poor locale. It lacks the natural resources (oil, precious metals, minerals, forestry, fishing) to establish a primary economy; it also lacks the resources to also establish a major secondary economy (manufacturing). The VI economy is a tertiary economy (service). Nonetheless, for the long-term, the teritory must diversify its economy to prevent the stumbling of one sector from causing the whole economy to tumble. Election season is in the air and will soon research fever pitch. As such, the politician campaign must include plans on how to strengthen, deepen, sustaining and diversifying the economy.
Further, agree with Benito that the BVI must anticipate a worse case in regards to establish registers of beneficial ownership, per the UK’s amendment to the Sanctions and Anti-Money Laundering Bill. It must embrace and anticipate having to set up the registers; it must act urgently. Of course, independence is an option; though, as I have outlined in a recent article, the VI is not ready for independence.
profitable but already the place gets jam packed. Loosing its 'niceness'. Best to refuse to cooperate with any
influences and devalue peoples rights and enjoyment of their lives. Turning the BVI into another Honolulu is
terrible. And the knee jerk reactionism to demands for private information on individuals, was most disgusting
and disgraceful. Because someone else behaves like an ass, doesn't mean the BVI should also.
#andrewfahie
We still need better and more seasoned advocacy in the UK and better PR to focus attention on all of the good business we are involved in and how that benefits the UK, EU and RoW. A brief stint from Gary Hales is not enough.