The Virgin Islands (VI) was represented at the 42nd Cambridge International Symposium on Economic Crime held from August 31 to September 7, 2025, in the United Kingdom by Special Envoy Mr E. Benito Wheatley. Photo: YouTube

The Virgin Islands' legitimate financial services industry is often smeared by publications and politicians in the UK and has come under threat even by the UK government. Photo: VINO/File

Misinformed publications and politicians in the UK have often presented a false image of the Virgin Islands financial services industry and its efforts to tackle illicit financing. Photo: taxjustice.uk

Jesus College, University of Cambridge, in the United Kingdom where the 42nd Cambridge International Symposium on Economic Crime was held. Photo: iaca.int/File

There, the VI was able to defend its legitimate financial services industry that is often smeared by publications and politicians in the UK and has come under threat even by the UK government, which has been pressuring the Overseas Territories (OTs) to implement public registers of beneficial ownership, a move that could cripple the industry in the OTs, including the VI.

‘From poorest islands to thriving society’

Mr Wheatley let the audience know that VI is a vibrant community that has gone from being the poorest group of islands in the federal colony of the Leeward Islands to the thriving society it is today, and that Virgin Islanders are very proud of this after a very dark and difficult history with the UK.

He said, just like the UK, financial services is the VI’s main revenue earner, and it is vital to sustaining the public finances and the economy.

According to Mr Wheatley, it is notable that a key feature of the UK's growth agenda involves shifting to lighter-touch regulation of the financial services industry to boost the sector's international competitiveness.

“Understandably, the UK is prepared to accept a greater risk to achieve the growth it desires. In the BVI, we too are seeking to boost our national competitiveness as a jurisdiction; however, in doing so, we have to be extremely careful about going beyond the international standards set by the Financial Action Task Force. The wrong step could trigger business flight and see legitimate business grow to other jurisdictions whose corporate transparency standards do not exceed the FATF requirements.”

No financial transfers from UK since 1978

Mr Wheatley argued that the VI, just like the UK, is trying to find the right balance in this new era of higher tariffs and economic uncertainty.

“Financial services accounts for over 60% of government revenue. That accounts for two-thirds of the BVI budget, which funds our healthcare system, school system, police force, roads, sidewalks, and other public infrastructure. Its contribution to the government coffers pays the salaries of doctors, nurses, teachers, police officers, and other public servants.”

Mr Wheatley reminded that the VI has not received any financial transfers from the UK since 1978 to fund its budget, and added that he is confident that the UK treasury would not want to see the VI on its books as an additional financial obligation that the British taxpayers must meet.

“So, the BVI and the UK must continue to engage meaningfully on financial services regulation, as we seek the right balance for our societies and economies, as we tackle economic crime.”

Mr Wheatley said the UK and OTs must bear in mind that no jurisdiction, including the UK, the OTs and the VI, is zero risk. “We all have improvements to make to be better at effectively identifying and tackling economic crime.”

‘Strong record of compliance’

The Special Envoy noted that a few months ago the FATF placed the VI on its ‘Grey List’ to give the government an opportunity to make changes to its regulatory regime that were delayed by the devastation of two category 5 hurricanes in 2017, followed by the COVID-19 global pandemic from 2020 to 2023 and then the territory’s implementation of the Recommendations of the Commission of Inquiry Report.

He said the government is working assiduously to improve the areas that require strengthening or updating so that the jurisdiction can be reevaluated by the FATF and delisted at the earliest possible juncture.

“The UK has provided good support in this regard.”

According to Mr Wheatley, the Cayman Islands went through a similar process and was subsequently removed from the FATF Grey List after making the necessary adjustments.

“We are doing the same.”

Mr Wheatley pointed out that the VI has a strong record of compliance with the FATF standards on anti-money laundering, counter terrorist financing and tax evasion.

“The grey listing is a temporary departure.”

VI wants to be treated ‘fairly’

Mr Wheatley reiterated that the UK and OTs continue to be strong partners in tackling economic crime, and that the VI unequivocally supports the Foreign Secretary’s campaign against illicit finance, and would continue to do its part to help tackle it.

“The OTs work on the legitimate interest-based access to beneficial ownership information will lead the way internationally in setting a practical and effective standard for access by the public to this information, which is much along the lines of the UK's own regime for access to information and trust.

“The BVI’s only ask is that we are treated fairly and that UK policy towards the OTs does not disadvantage them relative to Crown Dependencies,” Mr Wheatley concluded.