The BVI Government has welcomed the recent International Monetary Fund (IMF) decision
to halt its discrimination between onshore and offshore financial centres.
Announcing last month that "the distinction between OFCs and other financially
active jurisdictions has been blurred by globalisation," the IMF has combined
its assessment programs for OFCs and its broader FSAP program.
Applauding the decision, the BVI International Finance Centre (BVIIFC) says
that it will create a more level playing field on which financial centres will
be judged based on their regulatory standards rather than geographic location
or size.
According to a comment released by the BVI Government Information Service,
the traditional distinction between onshore and offshore financial centres meant
that territories such as the BVI with significant offshore financial activity
were unfairly stigmatised and often regarded as tax havens that support tax
evasion, money laundering and other illicit financial activities.
Executive Director of the BVIIFC Mrs. Lorna Smith said: "We have long
made the point that it is not a question of onshore or offshore, it is a question
of sound or weak regulation and we are delighted that the IMF has recognised
this."
In a statement announcing its decision, the IMF acknowledged that globalisation
has "increased the range of cross-border transactions and intermediation
in many countries, as well as by the active efforts of a number of countries
to build or promote offshore business."
The BVIIFC Executive Director assured that there are strict regulations in
place guiding the operation of the financial sector in the Territory.
"We have a robust regulatory system and, as the recent IPOC case proves,
we will take action if there is non-compliance," Mrs. Smith told the Department
of Information and Public Relations.
The IMF also revealed plans to adopt a more standardised surveillance of the
financial sector. In making its recent announcement, the IMF conceded that "adopting
a unified approach would blunt concerns that jurisdictions are being unduly
targeted, while also underscoring the expectation that offshore financial centres
should meet commonly agreed international standards."
The BVIIFC is now hoping that other international organisations will emulate
the example of the IMF.
"We hope that the IMF's recognition that this distinction should end will
now extend to other international bodies and regulatory organisations,"
Smith said.
The BVIIFC is responsible for the marketing and promotion of the BVI's financial
services industry. It is also responsible for managing the reputation of the
BVI as a finance jurisdiction.
LAWANDTAX-NEWS.COM
