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BVI confident it has met OECD requirements

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BVI Financial Services Commission headquarters in Road Town, Tortola

By MERRICK ANDREWS
Online News Editor


In light of the new legislative changes that came into effect on Jan. 1, 2023 relating to its financial services sector , the British Virgin Islands (BVI) government has requested a supplementary review be granted by the Organisation for Economic Co-operation and Development (OECD) Global Forum on Transparency and Exchange of Information for Tax Purposes that will more accurately reflect the BVI’s status.

“Following a supplementary review, the BVI is confident, that it has complied with the requirements that would get approval for a ‘largely compliant’ rating to be reinstated,” Premier and Minister of Finance, Premier Natalio Wheatley, told the House of Assembly sitting on Friday.

Starting off his presentation in the House, Premier Wheatley said the BVI has demonstrated its continued commitment to complying with evolving international standards on transparency and the fight against financial crime, with a set of new legislative changes that came into force on January 1, 2023.

He said these legislative updates, including amendments to the BVI Business Companies (Amendment) Act 2022, and BVI Business (Amendment) Regulations 2022, meet requirements set out by the OECD Global Forum on Transparency and Exchange of Information for Tax Purposes as part of its Peer Review Process.

He went on to explain that the OECD Peer Review assesses compliance with the international standard on transparency and exchange of information on request (EOIR) in addition to assessment of a jurisdiction’s legal and regulatory framework.

The OECD Peer Review on the BVI was launched in in December 2021 and covered a historic review spanning as far back as 2016 and ending in 2020 during the heart of the Covid-19 pandemic, Wheatley said.

He said having maintained a “largely compliant” rating since 2015, the BVI was moved to a “partially compliant” rating in November 2022 as the historic analysis focused on the review period and could not take into consideration important legislative developments in 2022 that would ensure the effective and efficient exchange of information.

He explained: “The OECD Peer Review rating is one of the criteria that determines the “EU List of Non-cooperative Jurisdictions for Tax Purposes” (EU List). The BVI is currently included on the EU’s state of play document known as “Annex II”, which includes jurisdictions that have committed to implementing reforms. Its purpose is to recognise ongoing constructive work in the field of taxation, and to encourage the positive approach taken by cooperative jurisdictions to implement tax good governance principles.

“The BVI has a long track record of adhering to international standards as set by the Organisation for Economic Co-operation and Development (OECD), EU and other recognised global standard-setting bodies.

“Therefore, Madam Speaker, we are hopeful that the legislative amendments that are now in force will mean the BVI is granted a supplementary review by the OECD Global Forum and will soon be reinstated to a ‘largely compliant rating’.

“In closing Madam Speaker, the BVI will remain a world-class international financial center committed to high international standards on transparency and regulation offering a premier business-friendly jurisdiction for international investment and trade and capital flows. I thank you, Madam Speaker,” Wheatley concluded.

Local News

Alliance Calls for United Front Against Gun Violence in Virgin Islands

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Members of the Alliance in the House of Assembly of the Virgin Islands have issued a collective call for national unity and reflection amid a troubling rise in gun violence across the Territory, stressing that the situation must not be allowed to become the norm.

“The challenges we now confront are not normal, and we must never allow them to become the norm in our beloved Territory,” the Alliance said in a statement. “No family, no child, no community walks away untouched by the fear and psychological impact of such violence.”

The Alliance emphasised that the crisis is not defined by a single incident but reflects a growing pattern of firearm use that threatens to destabilise society. They warned that this violence is eroding the foundations of law and order, creating an environment where families live in constant fear.

“This is not normal, and it is not acceptable,” the statement continued, calling for a united national response. “Now, more than ever, we must come together in a national chorus of peace and unity.”

To address the escalating violence, the Alliance has renewed its call for a comprehensive National Crime Reduction Strategy, which they said must involve coordinated efforts by the Government and various stakeholders. The strategy, they argued, should balance strict law enforcement with robust social support, economic opportunities, and sustainable, community-based interventions aimed at reducing the root causes of crime.

The Alliance also called for immediate legislative amendments to close what they described as a critical gap in the Territory’s legal framework. They pointed out that while the possession of a firearm currently carries a mandatory minimum sentence of five years’ imprisonment, possession of ammunition or explosives is subject to a much lighter penalty—a $500 fine or six months’ imprisonment.

“It is not logical to assume that an individual in possession of ammunition or explosives has no access to a firearm,” the Alliance said, calling for the penalties to be brought in line with those for firearm possession, including a mandatory minimum sentence of five years’ imprisonment.

They also stressed the importance of proactive community support, including youth outreach, trauma support for survivors, and significant investment in crime-fighting resources.

“We refuse to accept a future where parents are afraid to let their children play outside or where families live in fear of preventable acts of violence,” the statement said.

The Alliance ended their message with a call for unity, encouraging residents to come forward with any information that could assist law enforcement in addressing the recent surge in violence.

“The fight against gun violence goes beyond legislation; it is about saving lives, restoring peace, and securing the future of the Virgin Islands for generations to come,” they said.

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Opposition Members Meet With Governor to Voice Concerns Over Law Enforcement Review

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Three members of His Majesty’s Loyal Opposition met with His Excellency, Governor Daniel Pruce, on Monday, April 28, to raise what they described as “serious concerns” regarding the recently published Criminal Law Enforcement Review and the Commission of Inquiry.

The two-hour meeting was attended by Hon. Myron Walwyn, Leader of the Opposition and Sixth District Representative; Hon. Melvin “Mitch” Turnbull, Second District Representative; and Hon. Stacy Mather, At-Large Representative and Deputy Speaker of the House of Assembly. The Opposition members said the meeting was a vital opportunity to present the views of Virgin Islands residents at the highest level of government.

“We were glad for this opportunity to raise concerns from the public with respect to the Criminal Law Enforcement Review,” Hon. Walwyn said in a statement issued after the meeting. “His Excellency listened intently and gave us the assurance that the concerns raised on behalf of the people of the Virgin Islands will be given much consideration.”

Among the key issues raised was the Opposition’s strong disagreement with a recommendation that the Governor re-specify his powers under Section 60 of the Virgin Islands Constitution. That section outlines the Governor’s authority over external affairs, defense, internal security, and the public service.

The Opposition also objected to a proposal that would transfer responsibility for customs and immigration from the local government to the Governor’s office. They insisted that these matters remain under the control of locally elected officials.

Additionally, members voiced firm opposition to any suggestion that sea ports and airports on the sister islands be closed — a recommendation they argue would severely impact the local economy and increase the vulnerability of residents in those areas.

“The matters addressed in the Criminal Law Enforcement Review have significant implications for the governance and the future of law enforcement in our territory,” the Opposition said in a joint statement. “It is therefore critical that the voice of the people is heard and carefully considered in any reforms that are proposed.”

The meeting comes as Virgin Islands authorities continue to weigh a series of recommendations emerging from both the law enforcement review and the 2022 Commission of Inquiry, which examined allegations of corruption and poor governance.

Opposition members said they remain committed to ensuring that “transparency, fairness, and respect for the rights and aspirations of the Virgin Islands people remain at the forefront of any ongoing or future reforms.”

Governor Pruce has not yet issued a public statement regarding the meeting.

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Myron Walwyn Sworn in as Leader of the Opposition in the British Virgin Islands

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Sixth District Representative Honourable Myron V. Walwyn has officially been sworn in as Leader of His Majesty’s Loyal Opposition by Governor Daniel Pruce. The ceremony, which took place ahead of the House of Assembly (HoA) sitting on Monday, March 24, marks a significant shift in the political landscape of the British Virgin Islands.

Walwyn’s appointment follows a formal request submitted to the Governor on Friday, March 21, by members of the recently formed opposition faction known as “The Alliance.” The letter, signed by Walwyn, Second District Representative Honourable Melvin M. Turnbull, and Honourable Stacy R. Mather, called for Walwyn to replace Honourable Ronnie W. Skelton as Opposition Leader. The Governor accepted the request in accordance with Section 70(5) of the British Virgin Islands Constitution, which allows opposition members to determine their leader by majority vote.

With The Alliance holding a majority within the Opposition, surpassing Skelton of the Progressive Virgin Islands Movement (PVIM) and Eighth District Representative Honourable Marlon A. Penn of the National Democratic Party (NDP), the transition was all but assured. This realignment comes in the wake of internal disagreements within PVIM, particularly over a recent attempt by Skelton and Penn to dissolve PVIM and integrate its members into the NDP. That effort led to a rift within the Opposition, prompting Mather and Turnbull to shift their support away from Skelton.

The political maneuvering has raised speculation about potential challenges from Skelton or Penn in response to the change in leadership. However, for now, Walwyn assumes his role as Opposition Leader, with the responsibility of unifying the bloc amid ongoing internal divisions.

Meanwhile, the ruling Virgin Islands Party (VIP), led by Premier and Minister of Finance Dr. Natalio D. Wheatley, continues to maintain its eight-seat majority in the HoA. With the Opposition now under new leadership, political analysts will be watching closely to see how Walwyn steers his faction in the months ahead.

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