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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

Premier Slams Opposition Over “Misinformation” in No-Confidence Motion Debacle

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Premier of the Virgin Islands, the Honourable Natalio D. Wheatley, has condemned the Opposition’s handling of a No Confidence Motion, accusing them of “bungling” the process by failing to comply with the Standing Orders of the House of Assembly.

In his remarks to the public, Premier Wheatley took aim at the Opposition for spreading what he called “misinformation” and for directing “vicious comments” towards the Honourable Speaker of the House of Assembly, whom he insists was not at fault in this matter. “It is unfortunate that some persons have chosen to be selective with the facts,” Wheatley stated, “taking Virgin Islands politics to a dark place.”

The Premier reiterated that while every member of His Majesty’s Loyal Opposition has the constitutional right to challenge the Government, “persons cannot on one hand profess to be the vanguards of law and order, and truth and righteousness, and then flout the rules and regulations just because it is convenient to their agenda.”

He further called on the Opposition to apologise to the Speaker for “pre-empting her ruling, walking out of the House while she was delivering her ruling, and casting aspersions against her integrity.” According to Wheatley, “a higher standard of conduct is expected from those who aspire to lead the country.”

The controversy arose from the Opposition’s failure to adhere to the procedures for filing their Motion of No Confidence. The Premier emphasised that the Standing Orders, amended in 2016, clearly distinguish between Government Business and Private Members’ Business. He argued that the Opposition’s motion was categorised under Private Members’ Business, and that the Speaker’s ruling was correct. “A simple reading of the Standing Orders will show that the Opposition’s Motion was clearly Private Members’ Business, and the Honourable Speaker was correct in her ruling,” Wheatley asserted.

Premier Wheatley went on to accuse the Opposition of prioritising political gamesmanship over the completion of critical reforms, claiming that the timing of their Motion was intended to undermine the Government’s efforts to petition the UK for the lifting of the Order in Council. “The Opposition prioritises ‘brownie points’ over the completion of the recommendations and the removal of the threat to suspend our Constitution,” he charged.

As he concluded his statement, the Premier reaffirmed his administration’s commitment to serving the public, highlighting ongoing efforts to repair roads, address infrastructure challenges, and finalise the steps necessary to meet the Commission of Inquiry’s recommendations. “My Administration remains united and firmly committed to our responsibility,” Wheatley stated. “There is a lot that needs to be done instead of staging walkouts and press conferences.”

He closed by expressing his readiness to engage in debate when the Motion is properly brought forward, adding, “I look forward to responding to the Motion when it does come up for debate, assuming the Opposition complies with the Standing Orders of the House.”

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BVI Premier Seeks Removal of Opposition No-Confidence Motion Over Procedural Errors

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British Virgin Islands Premier Natalio Wheatley has requested the removal of an opposition no-confidence motion from the House of Assembly’s Order Paper, citing procedural inaccuracies in its submission.

The motion, which seeks the dissolution of the current Fifth House of Assembly and calls for new elections, has created a tense atmosphere in the proceedings on September 3.

The Leader of the Opposition, Ronnie Skelton, is barred from introducing the motion, which criticises Premier Wheatley and Finance Minister for a series of alleged failures.

The opposition accuses the Virgin Islands Party (VIP)-led government, in power since April 2023, of worsening the economic outlook, diminishing quality of life, and eroding public trust.

Key points in the motion include Wheatley’s recent admission of a $20 million underestimation in public officials’ salaries, which could strain public resources.

It also criticises the Premier for failing to deliver an economic plan or a tourism strategy, and for mismanaging government assets like the Prospect Reef Hotel and the British Virgin Islands Music Festival 2024.

Other grievances include excessive international travel spending, underfunding of crucial sectors such as education and agriculture, and concerns about the Premier’s handling of infrastructure and public safety.

Further complaints involve the Premier’s unilateral decisions on decolonisation discussions with the UN and acceptance of the Commission of Inquiry’s recommendations, which the opposition argues have eroded public trust and accountability.

Residents are closely monitoring today’s House of Assembly proceedings, which are expected to have significant implications.

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Opposition Leader to Introduce No-Confidence Motion Against Virgin Islands Government

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The Leader of the Opposition, Hon. Ronnie Skelton, is set to introduce a no-confidence motion against the current Virgin Islands government, citing a series of alleged failures by Premier and Minister for Finance, Hon. Dr. Natalio Wheatley. The motion argues that since assuming office in April 2023, Premier Wheatley’s leadership has led to a deteriorating economic outlook, declining quality of life, and a lack of public trust in the government.

The motion highlights several key points, including Premier Wheatley’s recent admission in the House of Assembly of a $20 million underestimation in salary increases for public officials, which could place a significant strain on public resources. It also criticizes the Premier for failing to produce an economic plan for the Territory, despite repeated requests from Opposition members, and for a lack of a comprehensive tourism plan to enhance the Virgin Islands’ market share.

Further allegations include the neglect of key government assets, such as the dilapidated state of the Prospect Reef Hotel, the mismanagement of public funds on initiatives like the Virgin Islands Music Festival 2024, and excessive government spending on international travel. The motion also points to the underfunding of critical sectors such as education, small businesses, and agriculture, and raises concerns over the Premier’s handling of the Territory’s infrastructure and public safety challenges.

Additional grievances center around the Premier’s unilateral decisions without public consultation, including his dialogues with the UN on decolonization and his acceptance of the Commission of Inquiry’s recommendations. The Opposition contends that these actions have undermined public trust and accountability.

The motion concludes with a call for the dissolution of the current Fifth House of Assembly, urging a new election to allow citizens to elect a government in which they can place their confidence.

 

 

 

 

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