REPORT: ‘Insolvent’ Bank of Asia jeopardised VI’s credit rating
The Bank of Asia (BVI) Ltd (BOA) operated while insolvent for several months before it was forced into provisional liquidation, putting the territory’s credit rating at risk, according to court documents reported by OffshoreAlert.
The Virgin Islands Deposit Insurance Corporation (VIDIC) filed a winding-up application against the digital bank on May 26, 2025, at the High Court, citing public interest concerns and an estimated insolvency of at least $19 million.
“If no action is taken, BOA will fail, resulting in damage to the depositors, the territory’s reputation and loss of confidence in the territory as a financial centre,” the VIDIC application stated.
The court made the filing public on July 10, 2025, confirming that VIDIC warned that allowing the bank to continue operating would jeopardise the BVI’s recently improved credit standing.
“The BVI was recently upgraded to investor grade by Moody’s for the first time. This might be at risk if BOA is allowed to continue operating in financial distress,” VIDIC asserted in the application.
BOA was incorporated in the BVI in August 2015. It held a restricted banking licence from March 2017, began accepting deposits in 2020, and received its general banking licence in March 2021. It offered services mainly targeting the Chinese market, focusing on digital assets and offshore banking.
The BVI Financial Services Commission (FSC) and VIDIC issued regulatory directives as early as August 2024. Deloitte was later hired to conduct an independent review, and on February 26, 2025, Deloitte reported, “BOA is insolvent.”
The report flagged serious issues, including related-party loans that accounted for nearly half of the bank’s assets. The largest was an $18.8 million receivable from BOA International Financial Group Limited, itself balance sheet insolvent and unaudited since 2020.
Despite various proposals by BOA to attract capital, including a reported offer from an unidentified investor to purchase 60% of the bank’s shares for $500 million, no viable solution materialised.
“Despite multiple regulatory directives, engagements, and opportunities to remedy its capital and compliance deficiencies, BOA has not presented a concrete investment proposal, recapitalisation, or turnaround plan capable of restoring solvency or operational viability,” VIDIC stated in its filing.
“As a result of BOA’s continued failure to comply with the FSC’s directives, the questionable related party transactions, BOA’s insolvency, and the overwhelming evidence that BOA is failing or likely to fail, the Applicant has issued this application to allow the joint liquidators to take control,” VIDIC stated.
The bank was controlled by Carson Wen, a Hong Kong lawyer and politician, and his wife, Julia Fung. The application also named the current Junior Minister for Financial Services and Economic Development, Lorna Smith, as a former Deputy Chairman and significant promoter of the bank until April 2023.
The bank’s website previously identified the bank’s “team” as Lisa Lou, President; Deon Vanterpool, Vice President; and Richard Lake, Chief Compliance Officer, and its “Board of Directors” as Lou, Meade Malone, Kenneth Morgan, and Yau Yiu Lam.
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The silence from our leaders on this matter is shocking! And I mean both elected, and unelected leaders, too!
The Leader of the opposition has been calling for full investigation. It is needed
Oh! I see now, the premier authorized a deposit of that $5 million USD to bank of Asia to help save it and risk tax payers hard earn money?
Lorna Smith needs to resign immediately.
Without haste, like yesterday. Too much lies and questions not being answered truthfully!
Lorna was in her own corner all the time. She was a deputy chairman and chairman of the bank. She was also a director of the bank. She was in these positions during the times when the bank was insolvent. She ran for elections and became the minister of financial services and banks and she knew that that bank was in trouble and did nothing to bring the matter to an end because she had a personal interest And still allowed the government to put 5 million dollars in that bank that she knew was failing.
Lorna is a wicked woman. She needs to resign.
Court documents now reveal that everything of substance reported previously by GBM is true – the invoices/receivables matter (‘financial irregularities’), the bad loans to friends/preferred equity trick, the lack of FSC audits and oversight, no proper audited financials produced, etc etc. The list goes on and is long. This government can no longer remain quiet and say we must wait for an investigation and that we must trust in the process. LOL. The court documents state that a thorough investigation has already occurred, and even Deloitte was hired to provide a report. The findings are for all to see. It is now time for heads to roll; period.
Not totally. GBM’s story gave the impression that the FSC stood back and did nothing but if you read this article, that was far from the case! Thw GBM’s story was purely political and painted the FSC as Lorna’s little pet doing her bidding which is totally untrue. It is clear from the newly released information that the FSC were fully aware and engaged with the bank, going through due process. The VDIC then moved in and dis their part. This all shows that our systems WORK and we need to LET THEM WORK! The notion that the regulator let the bank do as it pleased is false and GBM owes the entire Territory and apology for trying to taint our bread and butter industry out of malice!
Sadly, any credit due the FSC is unfounded. It failed spectacularly, as evidenced by the court document. That document is now available to all of us thanks to OffshoreAlert. Paragraph 6 – only on 19 July 2024 did the FSC express any concerns. Paragraph 8 – it seems that the FSC NEVER issued an inspection report. No inspection ever? Paragraph 11 – only in December 2024 was Deloitte retained, with its report issued at the end of February 2025. Probably a coincidence but the window of Deloitte being hired and issuing its report was while Lorna Smith was in between stints as Deputy Premier and Junior Minister. Paragraph 11a – 2022 and 2023 financial statements were disclaimed by the auditors due to significant matters of concern. Paragraph 11c – 2021 financial statements were unqualified (that’s very bad btw). The balance of paragraph 11 includes other findings by Deloitte regarding events from well before it was retained and matters that the FSC should have caught in its regular evaluations (which seem to have never occurred). Paragraph 29b – the bank had been balance sheet insolvent since early 2022. Only in May 2025 did VIDIC, and not the FSC, file the application for the appointment. It is easy to see from the document filed by VIDIC that the FSC was asleep at the wheel for years. That’s unfortunate.
A lot of folks in the BVI collecting big money and doing absolutely nothing. When you criticize the first thing they say is we know nothing about the industry. Now see here, a real clusterf~]k we find has happened.
Titles, honors, big salary, big office with big desks, attending big parties, receiving big praises, big overseas conference attendances, cameras taking big group photos is all they care about.
Nothing else
Was FSC asleep voluntarily or made to sleep because of who the minister was? Think about it. Their minister was involved in this bank. Was she applying pressure to them to look the other way? This is why a full investigation is needed. There are many questions that need to be answered.
There’s a growing concern about public officials who appear more loyal to private wealth than to the people they serve. When charitable foundations with deep-pocketed backers are promoted from within the highest levels of government, we have to ask—whose interests are really being served?
Unite BVI’s purpose fund now being publicly championed by Lorna raises serious questions about influence, access, and priorities. It’s difficult for ordinary taxpayers to have confidence when the lines between public duty and personal networks are so clearly blurred. Especially when past initiatives have already raised red flags about who truly benefits behind the scenes.
The people of the Virgin Islands deserve leaders whose loyalty lies with the public—not with those who hold the purse strings.
Let’s try and get rid of the foul stench of corruption
Let’s try with UK, America, Europe and others first.
Oh no! America, UK, Europe andother such ntions are not corrupt? well who taught Tola and others how to? Did. Tortolians teach them?
Inquiring minds would like to learn.
but yall was on cindy backside
where theres smoke there fire!
but hey independence them say
this the same country that brag about our financial services and fighting off uk against transparency in the financial registry area?…. hmmmmmmm
i wonder what them hiding fr cuz if them do this with bank of asia what them doing else where…
i always found it funny that we have almost zero money laundering cases here despite clear signs of it….. wha yall does say again? stop that watchy watchy? ok then… when the gunman them break in, steal, or kill any of your relatives i hope you keep that same energy no watchy watchy and no snitching.
we got all kinda laundry mats, rental companies, bars, charter companies etc for such a very small country. oversaturated market and in some cases they are ran by young people with little to no credit score or job history…….
Why don’t all those BVI people haters don’t push ou that word “independence” out them bouddy holle next time them go? So sick of them now.
If England/YK is free then all other people should be free to chose their own path.
He who thinks we don’t deserve our freedom whether we can afford it or not are our greatest enemies, and not what being independent might or might not do to us.
U is a problem!!! Leave the bvi!!!
We need an investigation. Now I see why Lorna was jumpy to join the VIP on the morning of elections. She had to cover her tracks. She specifically wanted financial services and banking. Because she knew what was taking place at the bank because those problems were there from 2021. Then the Premier put the 5M in the bank around the same time that she crossed the floor back over to them to become Junior Minister. This is thing stink like spoil fish. I needs unpacking. Corruption! Corruption! Corruption!
Tell the UN we need Inpdendence from these corrupt politicians and elites. MM, there’ a surprise. Ha ha. V….. Ha ha. What a coincidence.
We need police involvement now and new types of leaders
We need UN to come and save the BVI from these people. UK is not the problem.
Lorna in her own corner. You don’t have to be a genius to understand what has taken place here. The head of VIDIC resigned for a reason. Why was this bank allowed to operate for so long after the issues were discovered. The bank chairman and director who would have known the problems of the bank then became the minister for financial services and banks and did not do her job to protect the reputation of the BVI and to secure tax payers money. I will find it impossible to believe that Lorna did not know that the government was depositing money in that bank. This is thing is very serious.
I wonder what Violet and Damion would say now. LOL. Oh wait for the internal audit that they would never see. Jokers. They crucified Cindy. Let’s see if they crucify the internationally reputable Offshore Alert Magazine. Call the editor and tell him not to talk the truth until the fake internal audit is completed.
A bank that is just established affect the status of the bvi.
It was just established. So to me the bvi can not be held for its demise. Many factors could contribute to such.
The criminals are getting more sufficiated than most.
And to deal with them one must think like a criminal themselve
I don’t think our representatives have any problems thinking like criminals.
@ But why:
The criminals are right here some even our own local high class thieves.
Saving that one to remind me how they move on another day.
“A lot of folks in the BVI collecting big money and doing absolutely nothing. When you criticize the first thing they say is we know nothing about the industry. Now see here, a real clusterf~]k we find has happened.
Titles, honors, big salary, big office with big desks, attending big parties, receiving big praises, big overseas conference attendances, cameras taking big group photos is all they care about.
Nothing else”
Nat & Junior, Good work
should be full to running over with white collar criminals, both local and international.
Ye, this will never occur. for multi tude of reasons,but some of the same criminals will go. seek out and arrst the drug dealer ifthey can’t. buy him out.
he hypocrisy stinks greater than anything that comes out of their anus.