Could BVI lose money invested in Bank of Asia?
As local regulators continue the process of winding down the Bank of Asia, it appears the territory may lose a portion of the five million-plus in public funds held at the bank.
On May 29, the Virgin Islands Deposit Insurance Corporation (VIDIC) and the Financial Services Commission (FSC) announced that they are taking steps to wind down the operations of Bank of Asia (BVI) Limited. The regulators said their decision is aimed at protecting depositors and preserving stability in the banking sector.
Since then, the public has been calling on the government to confirm whether any public funds will be lost when the bank is officially closed. During the House of Assembly sitting on June 3, Opposition Leader Myron Walwyn pressed the Premier for an answer to this question:
“Could the Premier tell us, in regards to the Bank of Asia going into liquidation, what will be the state of that $5 million — the people’s money — that is in that bank? And in regards to the OffshoreAlert information that came out on the 2nd of April 2025, indicating that the bank’s assets could have been frozen in the BVI, why didn’t the Premier seek to get the people’s money out of the bank?” Walwyn asked.
Premier Wheatley did not answer the question directly. Instead, he expressed confidence in the local regulators responsible for winding down the Bank of Asia’s operations, saying they are being guided by the relevant laws.
“I was advised of the situation with the Bank of Asia and informed of what the actions would be, but these are actions exclusively for the regulator. It’s not for me to take any action. They have legislation that informs what should take place when a bank becomes insolvent and I’ll leave it at that,” the Premier explained.
At this point, Walwyn pressed for a more direct answer: “Based on the VIDIC and the payout scales they have, of the $5 million, how much of it do you think the government will be able to redeem?”
Premier Wheatley responded by saying it would be irresponsible to speculate on the outcome.
“I’ll allow the liquidator and the VIDIC to do their work and in that process it will be determined who will get what,” Dr. Wheatley stated.
Problems with the Bank of Asia began earlier this year when the institution’s founder, Carson Wen, and his wife, Julia Yuet Shan Fung, declared bankruptcy in January while being at the center of a legal dispute.
A judge later ordered a freeze on the couple’s assets in the BVI after determining the bankruptcy declaration was an act of dishonesty and an extreme measure to avoid satisfying a judgment in favor of U.S. businessman Chad Holm.
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Thank you for pressing him Hon. Walwyn but as usual the Premier doesn’t answer questions. Something stinks with this whole Bank of Asia situation. Why would we put 5M in that bank? It’s not an ordinary bank like republic or CIBC. That money was put there for a reason. They would have known that the bank is failing why didn’t they take out the 5M? The people of the BVI just lost 5M. Who instructed for this money to be deposited there and why? The Premier has to go!
@Smh and @tell me, please check the article about the Liquidation of Bank of Asia’s assets on guavaberrymedia.com. Your eyes will be opened to the dishonesty that prevailed under a number pf persons who should know better but did differently. The Premier was in the dark and is still in the dark about what transpired at this bank. Poor dude got bamboozled twice by his lady Minister
whom he should have kept fired. Our poor Premier can’t get a break. Its time he step down and let someone else take up the mantle because he’s clearly in over his head.
All depends on whether the company is insolvent ie its liabilities exceed its assets, secured creditors getting fully settled (assuming there are secured creditors) and enough remaining to settle depositors in full. This cabal of VIP NDP Smith and Vanterpool family is bad news for the BVII. Between them you had the BVI Airways fiasco and now a failed bank. Wow!
Another thing, since 2019 the Chinese economy ans in the case of other countries, have seen many trigger events, eg Evergrande and volatile interest rates, that created loads of unrealized loses on balance sheets of many Chinese banks that can crystalize upon bank failure. How well has Bank of Asia navigated these events. Once again NDP Smith and the Vanterpool cabal, and now VIP, costing this place vital treasure. What the France Corna Lady doing as Chair Person of a foreign bank? What the F@wk
Just read the bankruptcy judgement against the founder.
What strategic advice did Corna Lady give on the application for the license and then afterwards to the bank’s operation. Corna Lady needs to resign as soon as possible. Her presence, further sullies the Territory.
Myron needs to call again for no confidence as Government deposited the money after the judgement against the founder
BTW I hope we have enough money to pay the account holders especially those holding over 100k in the bank. Where does VIDIC find the money. Yet another question for a firms ie all VIslanders
Absolutely @SMH, not only does the Honourable Premier NOT answer questions as you rightly observed, he also deliberately misleads and misdirects through the responses he chooses to give which is highly problematic and certainly UNACCEPTABLE as it erodes transparency, accountability and good governance.
The Bank of Asia Fiasco as recently revealed thanks to the in depth expose thanks to GBM, most definitely STINKS TO HIGH HEAVENS!
It is very confusing and imprudent to say the least for the Government to have deposited $5 million into this Bank when there were many worrying indicators given the ongoing court actions that began in 2017 and continues….this was definitely no ordinary bank. It was set up specifically to make it easier for BVI companies to open bank accounts.
In fact, the High Court Judgment of 2018 confirms the following about the Bank of Asia as it relates to the nature of its operations:
“The way its founder Mr Carson Wen described the genesis of the idea for the bank was set out in a letter to the BVI Financial Services Commission (“FSC”) on 6 November 2014 as follows:
“[2] The failure of BVI incorporated companies to open bank accounts easily is a major threat to the pre-eminence of the BVI in the offshore industry and if not effectively resolved promptly will result in a fall in the number of investment holding companies and special purpose vehicles which is the lifeblood to the BVI offshore industry and a major contributor to GDP, government revenue, and employment.
“[3] The grant of a banking licence would inter alia“…address the pressing need for BVI incorporated companies to open bank accounts without the hassle and pain that now pits the BVI against other competing offshore jurisdictions
SO, YES I AGREE with your point that it is strange for a bank with this specific focus to be seen as an appropriate & viable option for the BVI Government to deposit $5 MILLION into instead of using another more stable option offering general banking services such as CIBC, Republic Bank BVI, Banco Popular or First Bank. The only distinguishing feature is that of the close connection between this bank (its majority founder) and one of the Government’s Ministers as well as her family….SMH too
And please tell the public who’s the person at the helm of this bank. why didnt FSC confirm if the BVI had any interest at risk before they call foreclosure on the bank. why do we have 5mil in that bank when we have a national bank and a few secured banks. this calls for an investigation.
The truth will find you:
https://www.gbmediahouse.com/Articles/Article/3756/Possible-Cover-Up-in-Bank-of-Asia-Demise-Bank-Mishandled-Can-It-Still-Be-Saved
People can mock Cindy all they want but that was an execellent in depth reporting from her . It was factual and asked pertinant question about next steps. It avoided any gossip just hard facts. Well donde Cindy Well done.
I agree with “This was execellent!!!!”
Like her or loathe her, Cindy is a very necessary thorn in the government’s side.
9 loans granted. What is the total amount of those loans? $5 million? Asking for a friend.
The money was deposited or invested? Please clarify as there is a big difference especially as it relates to getting back the monies.
That is the relevant question!
If it was merely deposited, what was the interest rate obtained, and no matter what it was, it was likely well below the yield on a short-term US Treasury.
Alternatively, if it was supposedly “invested,” what was the anticipated or promised rate of return, and what kind of due diligence was undertaken beforehand?
This bank goes down and turn the lights out for financial services as a whole. Game over; period. Losing 5m will be the least of the problems. No one will drop a dime into BVI. People had better put their heads together fast to sort this out!
Great reporting by Guavaberry!
You clearly have zero clue about our financial services, please be quiet if you think this little jokey bank will do anything to our offerings.
Ha! Yeah I have absolutely no idea…think again mate.
This looks like a mobile laundry, transparency I don’t think so!
LET’S BE CLEAR: we all need to take very seriously and investigate fully the recent exposé and hit-piece in relation to the Bank of Asia FIASCO…this should NOT be dismissed or taken lightly. ACCOUNTABILITY & TRANSPARENCY is critical here in order to demonstrate that the VI has truly embraced and taken hold of GOOD GOVERNANCE as claimed coming out of the COI.
We also cannot afford to continue to play the typical VI games of misdirection, deception, deceit and denial as many choose to stick their heads in the beautiful sand while their Butts are exposed to the world….yeah, you may refuse to see or acknowledge what’s happening but it is crystal clear that there is A LOT TO SEE HERE…
I encourage my fellow Virgin Islanders and Residents to read THOROUGHLY the following so you know the FACTS and can weigh for yourself against any article or opinion out there:
1. start with the GBM article setting out this fiasco by highlighting the key ‘receipts’ that we must ALL be aware of. whether you love, like or loathe this media house and/or Cindy she should take a bow for this one in bringing it fully into the LIGHT for full discussion and investigation
2. next stop: read the Judgments of the High Court of the BVI given in 2018 (I think this is the same year BANK OF ASIA started its operations) : this provided a CLEAR SIGNAL of a serious dispute between the founders of the Bank AND CRITICAL INDICATOR that serious attention & focus of the Regulators/ FSC AS WELL AS the government was required:
https://www.eccourts.org/judgment/sancus-financial-holdings-limited-et-al-v-chad-christopher-holm
3. next stop: read the Court of Appeal judgment confirming the High Court ruling in favor of the minority founder (Chad Holm):
https://www.eccourts.org/judgment/chad-holm-et-al-v-sancus-financial-holdings-limited-et-al
4. ALSO have a look at the Privy Council judgment on this case and the recent article from the BVI law firm that obtained a Bankruptcy order against the Bank of Asia majority founders:
https://jcpc.uk/uploads/jcpc_2020_0085_judgment_84e7b998be.pdf
https://www.walkersglobal.com/en/About-us/News/2025/02/Securing-the-BVIs-first-recorded-personal-bankruptcy-orders
A lot of bobbing and weaving is happening as can be expected especially from the leaders in this country. The Government of the VI which MUST provide an ACCOUNT to the nation as to WHY CLOSER ATTENTION & WARNINGS were not heeded AND action given to protect the TErritory’s reputation and public funds deposited in this bank given CLEAR WARNING SIGNS that this Bank was in trouble in light of this fiasco that began about 7 YEARS AGO IN 2018!!!!
GIVEN THE LONG HISTORY on this, HOW in Heaven’s name does the BVI Government deposit $5 MILLION DOLLARS of our hard earned money in this Bank while it was in the middle of this FIASCO which was clearly taking place from the beginning of its operations!!!!! AND How does the FSC in these circumstances not adopt a stricter approach and stance including perhaps suspending operations UNTIL the issues with the founders were sorted out????? QUESTIONS SUCH AS THESE MUST BE ASKED & ANSWERED
The FACTS IN THE JUDGMENTS ARE TELLING especially the High Court Judgment that confirms the close ties and connection between the then Premier, His Wife the now Honourable JUNIOR MINISTER OF FINANCIAL SERVICES and the majority founder of this Bank. Apparently the Honourable Minister played a critical role by providing strategic advice on getting the banking license and then it was granted (SEE THE FACTS IN THE HIGH COURT JUDGMENT)
Don’t take my word for it or that of anyone else…READ FOR YUHSELF…the FACTS are in the Judgment and it is easy to know and separate facts from fiction on this…In the interest of Accountability, Transparency and Good Governance there must be a full investigation on key issues related to the involvement of the Government of the VI & FSC’s handling at least of the granting of the banking license to this Bank AND the regulation of it throughout in light of ALL that is in the public space that is verifiable from the COURT judgments…
Did we really lose it to the Chinese or did the politicians here just pocket it ?
There was a timei remember when St. Thomas wasg rappling with the exact issue. Appears something growing governments deal with from time to time.
Consensus seems to be a big well done for Cindy. Facts! Hoe refreshing. Such a difference to the Yellow Bellied Wiggo site. And refreshing not have C.O.S-C on this site every as if it is a news item.
My head is still spinning and not sure we can clean up all the tea being spilled from this…I barely made it through the Guava Berry article…kudos to Cindy…YES this is what INDEPENDENT MEDIA should look like and a true patriot willing to bring to Light what’s been happening in the dark….MORE FIRE!!!
FULL DISCLOSURE: I did wonder whether Cindy’s Hit piece was merely sensational – mainly sourced from a disgruntled insider; to be treated with extreme skepticism UNTIL I read the 2018 High Court Judgment shedding even more LIGHT on this. Here’s a DIRECT QUOTE from the JUDGE :
“Alive to the importance of such a bank (Bank of Asia) to the financial services sector of the economy the Premier, the Honourable Dr. D Orlando Smith, OBE took proactive steps to make it happen [the granting of the Bank license] by meeting with the promoters while he visited Hong Kong on 23 September 2015……
The Premier’s wife Lorna Smith TEP rendered advice and assistance in the BVI without relaxing the strict standards pertaining to thegranting and holding of bank licenses in the BVI. It also seems to be common ground that Mr Wen and Ms Fung were long-time personal friends of the Premier and his wife.”
WHAT…PLEASE LET THIS SINK IN…many questions to be answered here in the interest of accountability and transparency to preserve the credibility of the Virgin Islands and ensure Good Governance is not just words but shown in what we do….
ALSO and of course asking for a friend: How does the Honourable L Smith render advice on obtaining a bank license from the FSC…isn’t this a LEGAL matter that only a Lawyer should be advising on???? AND what type of assistance in the BVI would she have given as it relates to the granting and holding of a bank license in the BVI???? REALLY????? Common my people this must be addressed fully to preserve our reputation and credibility!!!!
well if you want money back Lorna received $1 million of it from her monthly fee at $15,000 a month plus nephew Dean assuming he hasn’t have a fee increase over the last 8 years would have also pocketed $1.5 million. More to point how was this bank allowed to continue while breaching the requirements to file annual accounts with the regulator.
Wonder what big real estate deals and players involved in this laundry.
I’d love a look at the loan book!
Good summary by Cicero VI.
And then this PUBLIC judgment came out this March! It is a long read but it has important information on how to save the $5 million. See link below.
https://www.eccourts.org/judgment/sancus-financial-holdings-limited-et-al-v-chad-christopher-holm
Clearly this show that the good friend of Lorna and Orlando to be a bad actor in the eyes of the JUDGE. Nothing new here — see paragraphs 82 to 201 — dishonest, untruth, missing tens of millions, giving away assets to the son, can’t find bank statements, etc etc. But that is not the point for present purposes.
Look at what is buried in paragraph 66 — “Lucky Oasis had signed a non-legally binding MOU with BOA to purchase 48% of BOA proportionately from all shareholders, and to reinvest US$1.0 billion in new shares. The funds for the proportionate acquisition of the shares were supposed to be paid partly in June and partly in July 2023, and new capital was to arrive in US$200 million-dollar parcels in August, October, and December 2023, February, and April 2024. Mr. Wen stated that this has not happened, and the purchaser has requested time to complete the transaction…”
And then look back to paragraph 38 — “the shares in the Bank of Asia, which the Defendants own basically, that they have been increasing in value, albeit with some ups and downs doubtlessly and overtime that they have been increasing in value.”
That is the JUDGE, holding documents undoubtedly, saying that. This is after the “Oasis Sun” matter.
Now value can change, but again Cindy was spot on regarding high values and investors. It is PUBLIC INFORMATION.
$1.0 billion of new capital? This would have made it the largest bank in BVI by many times. Then a JUDGE saying the bank’s value is INCREASING.
And Cindy now reports that other investors willing to pay big prices (whatever that might be) have been blocked from information to do so. Who would hold that information? Hmmmm……Rhetorical question.
Then a bank that is being valued so high is suddenly seized?
Not a shred of this makes ANY sense. Why is information being suppressed.
Want the $5 million back? Start a sale process and not a liquidation now!!! No doubt the $5 million will be returned with interest if a sale is successful. Duh.
Bad people can be held to account at the same time.
We MUST have this dealt with in PUBLIC and not only in secret by liquidators, which is how matters get swept under the rug.
THE HOA must bring this ENTIRE matter to the FLOOR. Open, TRANSPARENT. Hard questions asked in PUBLIC. Full answers provided in PUBLIC.
Do NOT let the Government hide behind statement like let the liquidators do their job and we will be supportive (and quiet). That job is in private. Very little will be known.
THIS demands PUBLIC if ever there was a time
Who is going to bring it to the floor of the house of assembly to what purpose when both sides of the house are complicit in this corrupt scamming and laundering of the public’s purse?
Someone had better figure that out or orchestrate a deal asap, else we are on to COI part 2. This time it is end-game and dissolution.