Smith pushes back on UK report’s grey list warning
Junior Minister for Financial Services Lorna Smith has rejected a claim in a UK law enforcement report that the British Virgin Islands (BVI) may be placed on the Financial Action Task Force (FATF) grey list.
Smith addressed the matter during a recent Virgin Islands Voice broadcast, following publication of the second volume of a law enforcement and criminal justice review by His Majesty’s Inspectorate of Constabulary and Fire & Rescue Services (HMICFRS).
The report warned that unless the BVI improves its anti-money laundering and counter-terrorist financing systems by February 2025, the FATF will place the BVI on the ‘grey list’ of jurisdictions under increased monitoring. It added that such an outcome would harm the BVI’s economy and potentially affect the UK economy as well.
Smith challenged this, stating she does not understand how the report’s authors reached that conclusion. She argued that other jurisdictions have been graylisted without harming the UK economy. Smith further pointed out the significant contributions of the BVI to the UK economy.
“I don’t understand how we could have arrived at that conclusion when other jurisdictions have been graylisted,” Smith asserted. “But other jurisdictions… we know that they have been graylisted and no harm came to the United Kingdom’s economy.”
The junior minister’s remarks come after the Caribbean Financial Action Task Force (CFATF) conducted a mutual evaluation of the territory in 2023. That evaluation placed the BVI under “increased monitoring” status, not on the FATF grey list.
Although Smith did not provide further details on the government’s response plan during the broadcast, she signalled disapproval of the language used in the UK-commissioned review. “We have to be very, very careful what we say and the impact that it has, not only on the territory but on our business,” she cautioned.
The HMICFRS report recommended significant reform to the BVI’s financial crime framework, including the creation of a Bureau of Financial Investigation and changes to the structure of the Financial Investigation Agency. These measures, it argued, were necessary to address “significant shortcomings” noted in the CFATF’s evaluation.
While the UK report outlines potential risks of greylisting if the BVI fails to comply, Smith maintained that such an outcome is not imminent
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Like it or not, the BVI is a BRITISH Territory. Being on the FATF grey list triggers increased scrutiny from global financial institutions, potentially restricting access to international finance, reducing foreign investment, and damaging a country’s reputation.
Actually if the Grey list category affects the UK standing then when Cayman was greylisted this must have effected the UK’s standing. Actually it did not, so this rationale is flawed
Like it or not, many do not like UK, meddling in or want them into the VI affairs.
From a shady and horrific historical reality, they own the place, but do they? really.
The VI people, must wake up and begin to steer their own ship of destiny.
Mmm.
It’s been 30 years and financial services is still here and will be here to stay. Things will change, pivot etc. but the crux of the industry is here to stay and that pisses some people off.
so Abromich the old owner of Chelsea has a compny registered in the BVI that now owes over £1billion to HMRC due to them operating put of the UK while having the company registered here.
GREY is where we are and this is a valid reason that they are coming for the FS, now if you sort this problem maybe they will relax but this is just 1 company that is a tax dodger, how many more are?
BVI seems to be in over its head. Sad situation for a country where the majority have absolutely no idea of what we have been trapped into. This is the real reason for all the pressure that we have come under lately. Our situation is just as bad or worse than any of those resource rich African countries.
push back so they can blacklist yall
drug runners smiling