BVI Wins Seal Of High Approval From Global Regulators

Tom Burroughes

3 January 2014

A global regulatory network has given its seal of high approval to the British Virgin Islands, the British overseas territory and offshore financial center, coming less than a month after Hong Kong’s financial regulator told this publication it hasn't told banks not to open accounts for corporate clients domiciled, incorporated or trading in jurisdictions like the BVI.

The ranking as a “top tier” financial jurisdiction was granted by the Financial Stability Board in its latest evaluation of how such centers meet global regulatory standards, according to a statement from the BVI’s promotional agency, the BVI International Financial Center

In its annual assessment, the FSB said the jurisdiction demonstrated “sufficiently strong adherence” to internationally agreed information exchange and co-operation standards in the areas of banking supervision, insurance oversight and securities regulation.

The FSB was set up in 2009 a year after global financial markets were hit by the arguably the greatest banking crisis since the 1930s, raising concerns also about issues such as financial transparency and governance. The FSB is chaired by Mark Carney, governor of the Bank of England.

In December last year, the Hong Kong Monetary Authority, responding to queries from this publication, said it hadn't asked banks not to open accounts for corporate clients domiciled in locations such as the BVI. There had been speculation, according to a source that declined to be named, that the HKMA had told accounting firms and other financial professionals not to open accounts for BVI companies.

The BVI has stepped up its visibility in Asia. As recently as September this year, the BVI opened its Asia-Pacific regional office in Hong Kong. According to the BVI, more than 40 per cent of its financial services business is from Asia, highlighting the critical importance of the issue.