A growing rift between the British Virgin Islands (BVI) and the UK government has erupted over proposals for a new corporate ownership register, with MPs accusing the territory of attempting to shield financial criminals from scrutiny. The dispute threatens to escalate into a constitutional showdown as pressure mounts on the UK to intervene.

The controversy centres on the BVI’s proposed system for disclosing company ownership information. While overseas territories, including the BVI, have committed to introducing publicly accessible registers of beneficial ownership (PARBOs), critics argue that the new measures would render it nearly impossible to uncover the true owners of firms registered in the islands.

MPs Joe Powell and Andrew Mitchell, who co-chair the all-party parliamentary group on anti-corruption and responsible tax, have written to BVI Premier Natalio Wheatley, condemning the plan as a “shameful bid” to protect illicit financial activities. The former development minister Mitchell went further, accusing the BVI of attempting to “continue to manage stolen funds and assist in money laundering from sources close to the sex trade and the drugs trade.”

Under the BVI’s proposed system, only individuals involved in legal or regulatory proceedings related to financial crime could request ownership information. Additionally, the owners of companies would be notified of such requests and granted five days to object before any details are shared. Critics argue this provision would alert criminals to impending investigations, allowing them to move assets before authorities can act.

“This could expose journalists to legal or physical intimidation when investigating high-risk stories on drug cartels, kleptocrats, or human traffickers,” the MPs wrote in their letter. The proposals also require applicants to already know the identity of a company’s owner before requesting ownership details—an approach described as a “logical impossibility” by Mitchell and Powell.

The UK Foreign Office is reportedly dissatisfied with the BVI’s proposals and has urged the territory to revise its approach. Foreign Secretary David Lammy has prioritised efforts to combat illicit finance, with the issue of public ownership registers featuring prominently in recent talks with overseas territories. British officials made their stance clear during a summit with the territories in November.

Transparency International, a leading anti-corruption group, has echoed concerns raised by MPs, warning that the BVI’s policy could undermine global efforts to combat financial crime. Lawmakers are set to debate the progress of PARBOs in a Westminster Hall session on Wednesday, with the BVI’s approach expected to be a focal point of discussions.

There is growing speculation that the UK government could resort to an “order in council” to compel the BVI to comply. The measure, rarely used to preserve the self-governance of overseas territories, has been previously invoked to abolish the death penalty and decriminalise homosexuality in British territories.

The BVI government has declined to comment on the criticisms but has previously stated its commitment to transparency and tackling financial crime. It has argued that open registers require a “tailored approach” depending on the jurisdiction.

Source: TheGuardian.com

As the British Virgin Islands navigate significant governance reforms, residents of Tortola are invited to a Town Hall Meeting on February 4, to discuss changes stemming from the Commission of Inquiry (COI). The meeting, hosted by the Government of the Virgin Islands, will take place from 6:00 p.m. to 9:00 p.m. at Maria’s By The Sea.

The forum aims to address key governance issues, including immigration, public assistance, Crown land policies, discretionary powers, statutory boards, and the integrity framework. These topics have been central to ongoing reform efforts following the Commission of Inquiry, which highlighted areas for improvement in public administration.

Government ministers and officials will be in attendance to provide insights into the reforms and answer questions from the public. Officials emphasize that community engagement is crucial in shaping the implementation of these governance changes.

Residents seeking further details about the event can contact the Premier’s Office at 1-284-468-2152 or via email at Premieroffice@gov.vg.

The Government of the Virgin Islands announced on Saturday, February 1, that American Airlines successfully operated six flights to Terrance B. Lettsome International Airport. Officials described the milestone as a reflection of growing confidence in the Territory’s airlift capabilities and its expanding tourism sector.

Minister for Communications and Works, Honourable Kye M. Rymer, highlighted the significance of the increased flight operations, stating, “The operation of multiple flights from American Airlines greatly enhances connectivity between the Virgin Islands and the United States, reinforcing the Virgin Islands’ status as a premier Caribbean destination. This increase in air service is expected to facilitate easier access for both visitors and residents, ultimately driving higher travel volumes and stimulating economic activity throughout the region.”

Permanent Secretary in the Ministry of Communications and Works, Mrs. Elvia Smith-Maduro, emphasized the role of infrastructure development in supporting the growing demand for air travel. “With air travel demand to the Virgin Islands on the rise, enhancing airport facilities is crucial for accommodating future growth,” she said. “The successful operation of these six flights underscores the importance of modernizing infrastructure to welcome more flights and passengers, and supporting the goal of establishing a vibrant year-round tourism industry in the Territory.”

Managing Director for the BVI Airports Authority, Mr. Kurt Menal, described the event as a step forward in the Territory’s airlift strategy. “The operation of these six flights by American Airlines not only marks a significant achievement in airlift capacity but also reflects a strong commitment to fostering economic prosperity in the Virgin Islands,” he said. “This event opens new opportunities for tourism development while reinforcing plans for further airport enhancements to meet increasing demand.”

The Ministry of Communications and Works reaffirmed its commitment to the ongoing development and maintenance of public infrastructure, ensuring that utilities remain reliable and affordable. Officials noted that continued investment in the Territory’s aviation sector is essential for sustaining economic growth and improving connectivity for residents and visitors alike.