BVI News

Premier: Revenue from financial services drops $30 million this year!

The capital city of Road Town as well as surrounding areas.

Premier and Minister for Finance Andrew Fahie has said the British Virgin Islands’ revenue stream from the financial services sector has dropped by several millions.

Addressing the House of Assembly during the budget debate on December 13, Premier Fahie said the drop was something he had predicted years ago.

He said: “This year, financial services — it is sad to say — dropped off by roughly $30 million … because they are coming under a lot of pressure.”

The Minister for Finance also revealed that he had to put several projects on hold because he “knew that the financial services were going to drop off”.

“They (my goverment ministers) were sometimes wondering when they see me sit down and they ask me: ‘what happen? Is something wrong?’ I tell them ‘no’ because certain burdens you have to carry for a little while before you share it. Some you don’t share at all,” the Premier said.

“As a matter of fact, the Minister for Health [Carvin Malone] was asking me, ‘I need more money’. I tell him ‘wait’. He telling me ‘wait on what?’ But I couldn’t tell him,” Fahie further explained.

Financial services was projected to see boom this year

Back in March, the Director of International Business Neil Smith had told territory to expect a significant boom in the financial services sector; the benefits of which were projected to be seen by year’s end.

At the time, Smith said the financial boom would have been the result of the European Union (EU) insisting that the territory implement the Economic Substance (Companies and Limited Partnerships) Act which effectively makes it mandatory for offshore financial services companies to set up physical offices in the BVI. 

The Act was implemented to keep the BVI off the EU’s blacklist of non-compliant tax haven jurisdictions. 

Smith had explained that while the 400,000-plus registered companies in the sector would have been reduced, the number of persons involved in the industry was likely to triple on the ground. 

“That’s where we will benefit because you will have more people here buying clothes, food, payroll taxes …” he said at the time. “It is a tradeoff, so that’s why we are excited.” 

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35 Comments

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  1. Shock says:

    And it will continue to drop for the years to come.

    It’s no longer acceptable for corporations and billionaires to hide their profits offshore and not pay their taxes in the countries in which they operate.

    Jurisdictions across the globe are cracking down on these currently legal tax loopholes as well as the money raised from crime and illegal activity that ends up in the BVI.

    The writing is on the wall. We better think of something else to do fast.

    Like 29
    Dislike 6
    • Not to worry says:

      Fahie has a solution. He’s going to give out millions in “Consultancies” to his friends to figure out what to do. They will all write a report that they copied off the internet. But no matter, no one sees it, no one reads it, no one cares.

      Like 50
      Dislike 1
      • That's right folks says:

        That is how the game is played in the world of POLITICS IN THE BVI, ALL YOU HAVE TO DO IS SIT BACK, WATCH AND KEEP YOUR MOUTH SHUT AND YOU WILL GET YOUR ANSWERS. FOLKS, IT IS TIME TO WAKE UP AND STAY WOKE.

        Like 15
    • Rope says:

      Ever hear the phrase “give em enough rope and he’ll hang himself”. Well that is what the Brits have done with the BVI. They predicted all of this and more. The government over the next couple of years will become so chaotic with no funds to pay the useless employees, unemployment will rise exponentially, crime will rise out of site, those with money will run to the US with their US passports never to look back. The end result will be the Brits taking over until stability is maintained. No more Belonger status and no more passports for Brits to enter the Territory. This is the future.

      Like 30
      Dislike 3
      • @ Rope says:

        Imperialism is a system of exploitation that occurs not only in the brutal form of those who come with guns to conquer territory. Such was cause of extermination of the original people

        Imperialism often occurs in more subtle forms also. When people refer to the country and its inhabittannnts as “pathetic,” and plead for the the former human exterminators and enslavers to come and take back these lands, because the Black people are not worthy of them, that is the mind of an imperialist.

        There are many of of such mind sets that . have left their caves and have made their way here with their horrible human tndencies.

        Those are the kinds of minds that will kill and exterminate entire peoples if they could. Those are the kinds of minds that are waiting to for a british force to come, dominate and take over and give full priviledges, just like the old. old colonial days. They are longing for it.

        Those are the kinds of devilish demonic minds that will poison your food, water, medicine and contaminate vaccines with life taking agents.

        These kinds of minds are now living among us BVIslanders.

        BVIslanders, we had better wake up. The devil is not on the horizo anymore, he is now in your back yard, and he is determined to take what you have for himself.

        The comments being posted over the last years have been quite disturbing, but revealing.

        Wake up people!

        Like 3
        Dislike 11
        • @@Rope says:

          The fact is that the BVI is one of the most racist lands in the world. Why? You have made it near impossible to gain citizenship. You make it near impossible to purchase property. You cannot own a business unless a “Belonger” is the majority owner. These are all acts of an Apartheid land where there is no intent to give those that can offer the most an opportunity to be equal.

          Well, those days are coming to an end. You will have no choice than to allow the good people of the world in or you will just die off. You can no longer perpetuate your closed society and give reason that your ancestors over 100 years ago were slaves.

          Like 11
          Dislike 6
    • Loans says:

      Fahie how are you going to pay the loans that the Brits are to guaranty? Do you think they are really going to guaranty the loans knowing the Territory will have no way to pay them back. This will only get worse. Sit there in your new office and ponder this. The Brits already have. Talk to the Governor.

      Like 20
      Dislike 1
      • @Loans says:

        Don’t worry he have his cronies and ??’s that he is going to pay to figure things out because he is not that smart. He might be smart in local bushman politics, that’s about it.

        Like 3
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  2. vip heckler says:

    Even though he knew revenue will be down, he still forged ahead and rewarded the inner core of the VIP. Hefty consultant contracts for mr Skelton and mrs Thompson {$12000 & $8000 per month respectively}. Mr Fahie was placed on the ports and all the other failed VIP candidates {past&present} were placed on various boards to wreak havoc on the daily workers. Unbudgeted monies were paid to useless unnecessary bodyguards and unnecessary buildings were rented to assist cronies. More monies were wasted fighting against Hon Vanterpool at the tune of hundreds of thousands of dollars and the speaker turned around and purchased an expensive SUV …

    Like 49
    Dislike 2
    • @Vip heckler says:

      Soooo correct, yes, yes so correct.What a F…ING crying shame.

      Like 20
    • thing to talk says:

      Another 40 thousand dollars was paid to a crony to decorate the sports complex for the state funeral while another failed candidate/crony is paid thousands daily to keep the said complex under A/C that is rented. No wonder they don’t want to fix the A/C

      Like 8
      Dislike 1
  3. Poor Leadership says:

    Instead of carrying a burden alone, a good leader engages his team, brainstorms, plans, makes decisions, formulates and implements policies to deal with problems, and informs and mobilized the masses to get results. A good leader does not foresee a problem and do nothing and then claim the burden was to much to share. You had ten months to tackle the problem and by your own admission, you chose to do nothing. For this you get a FAIL.

    Like 38
    Dislike 2
  4. Mmm says:

    I don’t know. But something about these calculations don’t seem right. 30mil drop in one year?? Does seem logical.

    Like 10
  5. The End says:

    The end is near. $30 million this year, $90 million next year. Are you people so stupid that you can’t figure this out. The only reason that the BVI had a financial sector was that the BVI enabled the wealthy and criminals to hide their money to not pay taxes. Once the Owners of these accounts are public there is not a reason in the world to have a BVI corporation.

    Your only hope is to develop your tourist sector but the only things you can manage is to tax the tourist to death. Well the tourists have other choices and so do those hiding their money. You BELONGERS have no choice but to wallow in self pity for you alone will be responsible for your own demise. Please bring on your racist comments to this post. It will be quite enjoyable. The Royal Marines will be landing soon and it won’t be to help your sorry asses after a hurricane.

    Like 43
    Dislike 15
    • VIsLander says:

      Whoever you are, you can always leave. Why stay here and be bitter if you’re not from here? You probably make more $$ here than you could where you’re from. That accounts for something but if you hate us so bad and think we’re racist just leave b/c we’ve never enslaved anybody here before

      Like 13
      Dislike 25
      • @Vislander says:

        There is nothing racist above the mentioned comment. The problem with you Vislanders, your minds is so messed up when it comes to hearing the truth. It’s as if the truth is erased from your minds. The only thing most of you can say and is good at is Just leave, just leave. BUY THE WAY, IT’S ANYONE, NOT ANYBODY.

        Like 22
        Dislike 6
    • Kitchen Table focus Panel says:

      @The End, we are with you 100%.Your comment is on point.

      Like 29
      Dislike 3
    • islandguy says:

      The end and rope are spot on. The people of the BVI are in a most difficult position: trying to maintain so semblance of their unique island culture, while at the same time generating enough revenue to develop the infrastructure needed to encourage international tourism and industry.
      However, it is almost impossible to embrace the nationalism embodied in the term “belonger” and still project the warm and inviting atmosphere required of both a tourist destination and legitimate international business. Dark money from tax havens and money laundering are completely incompatible with both. The people of the BVI need to decide whom they want to be.

      Like 19
      Dislike 1
      • Jane says:

        I would be proud to call myself a Belonger. I am proud to live in this country, to raise my children here, to invest in a business and home here and to pay my taxes here. I have to explain to my children, all born at Peebles Hospital, that although this is the only country they ever lived in, they don’t and probably won’t ever Belong here. I have to explain to them that their Belonger friends belong, but they do not. It makes me desperately sad. If any ex-pat raises any concern we’re are smugly reminded, as if we could forget, that “boats and planes leaving daily”. Disenfranchising long-term residents in this way only increases the tensions between the different communities. When you make it so very hard for outsider to call this place Home, you find that when the going gets tough, they’re going to get going. And then they you say the outsiders ran away. Honestly there is nothing we can do right in some people’s eyes.

        Like 17
        • wondering says:

          did you birth you children in the BVI after the BNA was passed?

          If so, who is to blame?

          • One reason says:

            I agree with most of what you say. However, I believe the financial sector will not entirely collapse as long as Hong Kong continues to recognize BVI as one of the few”approved” places for the Hong Kong wealthy to keep their money offshore. Of course, if Chinese govt shuts that down, that will be that.

          • Jane says:

            @wondering
            Some people in life like to take responsibility. Some people prefer to blame. Which one are you? (I think I might hazard a guess on that)

    • One reason says:

      I agree with most of what you say. However, I believe the financial sector will not entirely collapse as long as Hong Kong continues to recognize BVI as one of the few”approved” places for the Hong Kong wealthy to keep their money offshore. Of course, if Chinese govt shuts that down, that will be that.

  6. Burden says:

    Fahie were you carrying this burden when you decided to pay Auntie the ridiculous amount for office space in the Cutlass Bldg for 5 years that wasn’t needed? A c***k like the rest.

    Like 43
    Dislike 1
  7. Compared to what says:

    We know the Premier likes the dramatic scenes. So question, is this drop in revenue compared to last year? Or is it compared to over the past years? Or decade? What is the drop in revenue compared to. The article really doesn’t say.

    Like 28
  8. thing to talk says:

    Another 40 thousand dollars was paid to a crony to decorate the sports complex for the state funeral while another failed candidate/crony is paid thousands daily to keep the said complex under A/C that is rented. No wonder they don’t want to fix the A/C

    Like 9
    Dislike 1
    • Exactly says:

      You’d think that for a state funeral for a man supposedly so well loved that people would be willing to donate their time to decorate the place. $ 40 K? At $ 200 a day per person, that’s 150 people (30 people for 5 days) + 10 k for flowers….

      As to a $30 million reduction in revenue, that represents about 8% of GDP. No surprise given the changed world stance towards off shore financial services/. Nonetheless, the alarm is ringing. Time to get serious or slowly perish as a nation.

  9. worker says:

    Guess we are seeing the signs since no early December end of month salary.

    • @worker says:

      Lmao. You can expect no pay, no job, no house and no food. If your not lucky enough to have one of the honored last names that gives you a key to the Treasury you are doomed. It’s unfortunate that the masses have allowed the few to bankrupt the country with impunity. Such is the way of the corrupt Black man. Merry Christmas lmfap

      Like 5
      Dislike 1
    • civil servant says:

      no that is because they still have bugs in their crappy new payroll system

  10. Inquiring Minds says:

    Did FSC publish their Annual Report to come to this conclusion?

  11. Diaspora says:

    It is no surprise that revenues from the financial services are trending downward. Contributing factors include Sanctions and Anti-Money Laundering Act, Economic Substance Act., disasters, Brexit……..etc.

  12. Distill and chill says:

    Firstly, we can obviously all ignored the ignorance of those talking about hiding money and tax havens. Either they are just completely uneducated or are writing from abroad with their agenda against the British Overseas Territories.

    Secondly, equally ignorant and nonsensical are the comments about Brits wanting BVI to so badly and/or to take over. Britain is trying to make the dependencies and OTs financially independent for good to limit risk and responsibilities for them and increase self sufficiency for the territories in future. Nobody would be interested in taking over a BVI whose main industry had moved somewhere else!

    Thirdly, this is partly because of a socialist vein of the EU that has a fearsome lobbying effort in the UK as well. Massively silent on any other countries, not least the UK, in imposing the same standards…. this is also partly because the BVI under the current FSC management has discouraged all industries other than incorporating companies so we don’t have the breadth of value services that Cayman and Bermuda enjoy. Cayman is also streets ahead on the economic robustness scale as they have set a system out that people can work with in order for the very executives bringing the business to have proper tenure. Therefore that talent and those relationships are locked in for the benefit of the territory and the overall economy benefits. Caymanians have wider choices.

    The current us and them attitude was always bound to hurt the BVI and BVIslanders and favour our competitors.

    Economic substance regime promises opportunities but really: there is zero class A office space available; the infrastructure is decrepit and there’s a smell of faces all over town; the schools are expensive and underperforming and the local schools don’t allow paying expatriates to join; the airlift is terrible not only no direct commercial jets but the stupidity of not having a decent ferry schedule with St Thomas flights also; the internet is terrible and more expensive even than equivalent places in the Caribbean, let alone elsewhere; to sell this we also need people to be able to move their lives here and settle which includes in the first instance an acceptable service level from Labour and Immigration; all of these things should have been sorted out years ago but have been neglected or destroyed by cronyism and corruption. The remedies are fairly simple and straightforward to fix but will the legislature and the FSC reform before it is too late? Clients are asking about doing more here but they are asking all of the normal questions about being able to do business and it is difficult to sell as it stands rather than they can get what they want elsewhere at the drop of a hat.

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