No virtual diplomacy for financial services

Junior Minister for Financial Services Lorna Smith has pushed back against criticism of government travel spending, arguing that face-to-face engagement is essential to protecting and promoting the BVI’s financial services industry.

Speaking during the 2026 budget debate in the House of Assembly, Smith said financial services remains the backbone of the territory’s economy and warned against suggestions that international advocacy could be conducted virtually.

“I listen to somebody talking about the government wasting money on travel, and whether we could do these meetings by a zoom,” Smith told legislators, noting that the government has invested heavily in both regulatory improvements and global outreach. “We can’t travel to Asia or Latin America by Zoom.”

Smith pointed to significant regulatory gains, including the territory’s progress with the Financial Action Task Force. She said the Virgin Islands has achieved a compliant or largely compliant rating on all 40 FATF recommendations and is continuing work to meet remaining requirements within the agreed timeline.

“These achievements reflect the investments made in the last fiscal year,” she said, adding that continued strategic funding for financial services is critical to national progress.

The junior minister also announced plans to properly staff a dedicated financial services directorate in 2026 and to complete a long-term strategy for the sector, as referenced by the Premier during the budget presentation.

Defending the $3 million allocated for travel, Smith said funds were used wisely through BVI Finance, supporting trade and financial services missions across Asia, Latin America, Europe and the United Kingdom.

Those missions, she said, laid the groundwork for deeper engagement in 2026, including stronger representation in Europe and enhanced advocacy in key markets where decisions affecting the territory are made.

“I do not travel for fun,” Smith stressed. “I much prefer to be home, but this work is necessary if we are serious about safeguarding the future of our financial services industry.”