UK anti-corruption advisor Margaret E. Hodge has called on Offshore Territories, such as the Virgin Islands, to prioritize tourism as a key strategy for economic transformation. Photo: Internet source

Baroness Margaret E. Hodge visited the Virgin Islands in September 2025 and met with various stakeholders in financial services. Photo: GIS

Baroness Margaret E. Hodge appeal comes as the United Kingdom faces increasing pressure to assist its overseas territories, including key tax havens like the Virgin Islands, in diversifying their economies and reducing their dependence on secretive financial services. Photo:Internet Source

The United Kingdom’s anti-corruption champion, the Rt Honourable Baroness Margaret E. Hodge (right) with Premier and Minister of Finance Dr the Hon Natalio D. Wheatley (R7) (middle) and Junior Minister for Financial Services and Economic Development Hon Lorna G. Smith, OBE (AL) (left) in September 2025. Photo: GIS

Her appeal comes as the United Kingdom faces increasing pressure to assist its overseas territories, including financial services jurisdictions like the Virgin Islands, in diversifying their economies and reducing their dependence on financial services. 

Tourism

According to The Financial Times, Hodge has recommended that these territories make tourism their primary focus for economic transformation. She argued that in exchange for supporting the growth of their tourism industries, the UK government should ensure these territories fully comply with financial transparency regulations.

This call for support aligns with broader efforts to combat corruption and illicit finance, particularly money laundering, which the UK has associated with offshore jurisdictions.

UK OTs under increased scrutiny

The Virgin Islands, Cayman Islands, Gibraltar, and Montserrat are among the UK’s overseas territories that have historically served as hubs for international finance. While they have thrived as financial services jurisdictions, these regions are now under heightened scrutiny due to what is perceived as a lack of transparency in financial dealings. International pressure continues to mount for increased financial transparency, notably the establishment of beneficial ownership registers.

The Virgin Islands has agreed to Legitimate Access to Registers of Beneficial Ownership, and this has been accepted by the UK government.

The VI has also stated in the past that it is willing to have Public Registers, once that becomes a global standard.

Meanwhile, Hodge emphasised that developing alternative economic models is necessary in response to the changing global landscape of finance and governance.

UK has a responsibility to support economic transition

In her statement, she highlighted the importance of gentle persuasion over forceful mandates to encourage these territories to adopt transparency. She underscored that while these areas have traditionally relied on financial secrecy, the UK has a responsibility to assist them in transitioning to sustainable economic models. With the UK advocating for greater transparency, her suggestion is to incentivise the development of tourism as an alternative income source, thereby reducing dependence on less sustainable financial activities.

The solution

Tourism, according to Hodge, presents a practical solution to the ongoing economic challenges faced by financial services jurisdictions in the post-financial secrecy era.

Hodge cited the Virgin Islands as an example of a region that could greatly benefit from increased tourism.

She pointed out that despite its beautiful beaches and an emerging hospitality industry, the lack of an international airport capable of accommodating large flights has limited the VI's tourism potential.

Hodge visited the Virgin Islands in September 2025 and met with various stakeholders in financial services. She admitted that financial services "is a legitimate business" that takes place in the Virgin Islands, but noted that the territory is "on a journey" to combating illicit finance.