Weeks after United Kingdom Prime Minister David Cameron publicly urged overseas territories to heighten their transparency, Virgin Islands officials have unveiled a strategy to do just that. The “Action Plan to Prevent Misuses of Legal Persons and Legal Arrangements,” released this month, commits the VI government to further transparency efforts. The plan’s goals are various:
• A review of existing laws to see “where shortcomings exist on beneficial ownership” in order to come into compliance with recommendations made by the Financial Action Task Force.
• The development of a “national risk assessment framework” by next year to measure progress in implementing rules to combat money laundering and terrorist financing.
• A strengthening of the Financial Services Commission’s inspections and supervision of trust companies and other providers to ensure that they keep the information on beneficial ownership as required by law.
• Continued participation in the international forums that devise standards on sharing beneficial ownership information and tax transparency.
• Further cooperation with the UK government “with a view to both supporting the UK’s initiatives and protecting the interests of the British Virgin Islands in a fair and consistent manner.”
UK reaction
Efforts in the VI and the Cayman Islands to increase information sharing are being recognised and welcomed by the UK government.
Speaking before the UK’s House of Commons Monday, David Gauke, a member of Parliament and exchequer secretary to the treasurer, said UK officials have received both territories’ action plans.
“The government will continue to work in partnership with the overseas territories as they produce these action plans as soon as possible, and by the end of the year at the latest,” he said.
Gov’t pledges
Premier Dr. Orlando Smith and other OT leaders met with Mr. Cameron in June to discuss strengthening the OTs’ commitment to share data on company ownership with tax authorities.
Under current law, trust companies in the VI are required to keep records on the beneficial ownership of VI-registered companies. Subject to international agreements made with several countries, they must share that data upon request.
Ahead of last month’s G8 Summit in Northern Ireland, UK officials called for information sharing between countries’ tax authorities to become automatic.
Although some advocacy organisations critical of corporate secrecy had called for G8 leaders to commit to creating a publicly searchable registrar of company information, a declaration signed after the summit fell short of that goal.
Instead, the declaration stated that “some basic company information should be publicly available.” It added that beneficial ownership information should be “accessible to onshore law enforcement, tax administrations and other relevant authorities.”
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