$$ earned from registering companies dips by 15%
The BVI’s earnings from registering corporations in the territory dropped to $168.9 million in 2020. This amount is $29.8 million or 15 percent lower than what was earned in 2019.
As an offshore financial centre, registering international corporations is one of the main ways BVI financial services sector earns money for the territory. The industry also accounts for more than 50 percent of the BVI’s GDP.
During the 2021 budget presentation on November 12, Premier Fahie said several international factors accounted for the dip in revenue.
“In fairness to the hard-working professionals in our financial services sector, economies and investments around the world have been hit by economic fallout and uncertainty since the start of the COVID-19 global pandemic,” Premier Fahie explained.
He continued: “This industry has been constantly bombarded with threats associated with blacklisting, Publicly Accessible Register of Beneficial Ownership by 2023, the BREXIT deal – or no deal, and other direct and indirect activities.”
Premier Fahie also hinted that persons should expect the financial services sector to recover slowly because of the uncertainty that is currently in the global financial sphere.
“The industry professionals have also been working to find innovative ways to make the BVI financial services more attractive and competitive, but we cannot expect these efforts to bear fruit overnight nor under the current uncertain global economic climate,” Premier Fahie cautioned.
The BVI’s financial services sector which has contributed to years of prosperity in the territory has been facing heavy international scrutiny since the Panama Papers (2016) and Paradise Papers (2017) were published.
Both global financial scandals showed how the world’s wealthiest were hiding money in offshore companies — many of which were registered in the BVI.
Thereafter, the BVI’s global reputation as a ‘notorious tax haven’ got worse and the territory has faced increasing pressure from global transparency organisations and the European Union who call for the BVI’s government to enact stringent laws that will deter the wealthy from hiding their riches in the territory.
The implementation of Publicly Accessible Registers of Beneficial Ownership is among the measures the BVI has been asked to take.
Recently, Premier Fahie committed to implementing this by 2023 but warned that it could have severe impacts on the local financial services industry. He also said such a move could endanger the lives of many who are linked to companies registered in the BVI.
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I’m not surprised there was a decrease in revenues from the financial industry given all that has been going on surrounding it.
I am surprise however that despite it all, the industry still managed to pull in $168.9 million in 2020. That’s not bad at all.
You all think that Covid caused the drop? NO!!! Beneficial ownership caused the drop and will continue to cause the drop. The only reason to have a corporation in the BVI is to hide your assets. Once the ownership is public, there is no need. Expect a continuation of the 15% or more over the years to come. Your yearly deficit will continue to grow each year. Just like the negro not to save for a rainy day.
How about just like the white man to pay himself ten times the amount as a black man doing the same jobs so he can afford to save? If you have to use the word ‘negro’ it makes me think you are a caucasian person. That last sentence was uncalled for. The negroes in the BVI have been doing well before big business and now and we will survive after it all. So get out of here for with that ugly attitude your savings will soon disappear. You won’t make what you made here in your country I know that.
..and money from illicit activity down $250 million.
As iron sharpens iron, so one man sharpens another “ Ezekiel 31:1-32. We need to run this race together my people. Negativity and hated , envy and disdain , will only serve to weaken us. We have hope and we have each other. Help each other and bit by bit we will rally on. No room for racism Mr LMAO. For you are not funny nor helpful and God does not like ugly. ! But I ( white woman) love my people of the BVI. And I believe that together we can prevail. Keep the faith BVI. !?
BVI continues to be on the gray lists. Shady offshoring, no accountability, lack of audits and tracking, the list goes on and on.
Counties, individuals, and companies are slowly realizing they can no longer hide monies offshore in tax havens like BVI.
That era is ending and so we will continue to see decreased revenues from this sector.
Our pillars of the economy are collapsing. Tourism is dead, financial services are drying up, and the drug trade is being brought out into the light. Money is becoming tight.
Carry on
Notice how everyone is tight lipped about the drug bust . Blame the governor fir bringing in the military ship ? Blame the Commissioner for keeping the whereabouts of the ship as classified information . Plenty glass ceiling will be shattered !!!! Wrong doing would not go on forever
I***t why complain when you’re the root cause of this
As you claim you’re protecting ppl from COVID-19 which ppl are thankful for
But in the return you are destroying your own country
Your protocol is useless
Who in there right mind will come here for 7 days vacation and can only tour the island for 3 days cause the will be quarantine for 4 days
You chase away all the investors now you begging them to come back so you’re giving investors residency if you don’t know it’s like selling the bvi passport how much low can you go
You need to get the h**l out of government cause you’re a …
The governor will run this country better than y’all but you ppl don’t like the man
God bless the governor