Members of the British Parliament have urged the government to apply pressure on the authorities of the British Virgin Islands to ensure the transparency of the beneficial ownership of companies. This is reported by The Guardian.
What accusations do the British parliamentarians raise against the BVI?
The parliamentarians accuse the leadership of the BVI of a 'shameful attempt' to avoid the implementation of strict measures to combat financial crime. The British MPs sent a critical letter to the government of the overseas territory, and former UK development minister Andrew Mitchell publicly criticized the current regulation regarding the BVI's beneficial ownership register.
The authorities of the British Virgin Islands do not publish data on the ultimate owners of companies. Although a corresponding register has been created, it is not accessible to the general public. Information from it can only be retrieved after confirming legal interest. In return, the person in question is notified about the request and can raise objections to the disclosure of their data.
In the view of British MPs and activists, this creates risks for financial crime, including money laundering.
The dispute threatens to lead the United Kingdom and the British Virgin Islands down a path of constitutional conflict. Advocates of 'transparency' are calling on the British government to issue a special order that the overseas territory must comply with. They believe that the current situation creates conditions for hiding stolen money and laundering funds acquired through drug and human trafficking. In their view, if the population of the BVI wants to live under the British flag, they should also share British values.
Why do the authorities of the BVI disagree with the accusations against them?
The Premier of the BVI, Dr. Natalio Wheatley, rejected the accusations made by British MPs against his jurisdiction. This was reported by The Sun newspaper. The head of the government of the British Virgin Islands stated that the jurisdiction is actively fighting financial crime and working closely with the law enforcement agencies of the United Kingdom.
"The coordinated attack on the jurisdiction is aimed at misleading the public and exerting pressure on the UK government to take colonial measures... Financial crime is a global problem, and to effectively address it, regulation, transparency, and cooperation, as well as justice and honesty among all stakeholders, are necessary," emphasized Natalio Wheatley.
The official claims that the BVI is not a haven for illegal activities and reminded that the UK’s Registry Chamber oversees the activities of the relevant authorities on the islands.
"Our financial services industry operates according to some of the highest regulatory standards in the world... Companies that do not meet the requirements are subjected to fines, license suspensions, or revocations," stated the Prime Minister.
How the conflict will end is currently impossible to predict.
What is a trade registry?
In our video we explain the definition and function of a commercial register and how you can verify the reliability and solvency of your foreign business partner.
Should you wish to check the sincerity of your foreign business partner’s request, Schmidt&Schmidt will gladly assist you.
We offer extracts from the commercial registers of more than 100 different registers in countries spread all around the globe. Additionally, we offer annual statements for a variety of companies. The original extract from any commercial register can be sent to you by mail or as a pdf-file via e-mail. Besides that, commercial register extracts can be authenticated with an apostille.
