Exclusive: 'Fixing deficiencies raised by FATF makes VI stronger’- Hon Lorna G. Smith
One tabloid Facebook blogger described the inclusion of the VI on the grey list as a “blow” to the territory in its write-up of the FATF’s decision.
However, in an exclusive interview with Virgin Islands News Online (VINO) on Friday, June 13, 2025, Hon Smith explained that the VI has been in the business of Financial Services since 1984 and is a highly regarded and highly respected jurisdiction.
“The fact that these deficiencies have been pointed out to us, the fact that we have committed to fixing these deficiencies would only make us stronger in the eyes of potential investors, and other persons who would want to do business with the British Virgin Islands.” Hon Smith stated.
The VI, she added, wants to continue being transparent and continues to exchange information and work with international partners in Financial Services.
“So there is no downside to it. Of course, we would keep an eye on it to make sure that there is no loss of business, but we do not anticipate that there is going to be any loss of business.”
Hon Smith also said most countries end up on a grey list. These include the Cayman Islands, which have since been removed; Monaco, which is currently on the grey list; and others.
FATF applauded VI for its efforts
“The FATF applauded the BVI for the progress that it made in just one year of being placed,” Hon Smith told VINO, adding, “In fact, the moment in February of last year when the announcement was made in relation to our mutual evaluation report, we published our action plan and it was because of that, we made so much progress.”
The Ministry of Finance, in a June 13, 2025, press release, revealed the plans put in place based on specific recommendations from the FATF.
Hon Smith also revealed the plan is to be off the FATF’s grey list in two years or less, as this is the average period.
“We will continue to work as hard as we have been working.”
Appearing before FATF was important
Hon Smith was accompanied by Mr. Glenford V. Malone from the Financial Services Commission (FSC), and by the National AML Coordinator Ms Lavonna M. Burrows, along with Attorney General Hon. Dawn J. Smith, who appeared before the FATF during a joint Plenary Session, in France, June 10 to 13, 2025, on the Territory’s behalf.
When asked to address the critics of the importance of travel, Hon Smith noted, “We had to go and give that political commitment at the highest level and to represent ourselves.”
The VI’s commitment and enthusiasm to work towards getting off the list in a quick time were welcomed by those in attendance at the meeting.
Everyone should support efforts by the gov’t
“The Financial Action Task Force, while they recognise that our anti-money laundering and terrorist financing framework is sound, they mentioned a number of areas that we need to beef up measures in,” the Junior Minister said.
She added that the government is committed to making sure the commitments made to the FATF are met.
“Everybody in the British Virgin Islands should be supportive of the efforts that the government makes and will continue to make in relation to the action plan that has been set out by the Financial Action Task Force,” Hon Smith stated.
She reiterated that there is no negative impact anticipated on the Financial Services business due to the grey listing.
“Given the contribution that financial services make to the economy, we have to make sure that significant contribution of more than 60 cents to every dollar continues. In fact, that it grows, in fact, and there is every indication that it will.”
We must work together
A former employee of the Financial Services Commission (FSC) noted that the Territory was working on the issues raised by FATF that got the Territory on the grey list, but they were interrupted by the Hurricanes and the COVID-19 pandemic.
The person also noted that “we are down but not out... It will not be easy, but working together in a non-partisan way is the only way towards the mark”.
The former FSC official warns that we must put egos and agendas aside and once again "prove that when we combine our talents, no hurdle is too high for us to clear and no obstacle can prevent us from reaching our destiny.”
“Let’s do it, Team BVI!” he concluded.
Some seem invested, including a tabloid owner and a minority in the opposition, to see the VI fail for their own selfish, despicable political agenda.
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