Financial Services Report viewed as useful and positive for the BVI
The KPMG Report reviewing financial regulation in the Caribbean United Kingdom Overseas Territories and Bermuda has a double value to the BVI, in highlighting the strengths of the territory's existing regulatory regime, while helping to prioritise the weaknesses that still exist, according to Chief Minister and Minister for Finance the Honourable Ralph T. O'Neal. He made the statement while tabling the Report in the Legislative Council on Friday October 20th.
The UK and the Caribbean Overseas Territories (Anguilla, BVI, Cayman, Montserrat, Turks and Caicos) and Bermuda commissioned an independent review of financial regulation in those territories. This independent review was carried out by KPMG to assess the extent to which the Overseas Territories comply with international standards and good practice in the way they regulate their international financial sectors.
The review analysed the position of each OT individually in terms of the extent and range of financial business conducted and the strength and effectiveness of their regulatory regimes. "The KPMG report is exception-based and largely concentrates on those areas of financial regulation where action is considered necessary to comply fully with international standards," said Chief Minister O'Neal as he presented the document. He said the government of the British Virgin Islands welcomes this comprehensive report, which they view most positively. He commended KPMG for producing such a thorough and useful review. "We also commend the approach taken by the British Government in producing the report, which offers an ideal example of how Britain and her Overseas Territories can work together constructively to resolve issues affecting us all." The report was also welcomed by the Economic Secretary to the Treasury Melanie Johnson, who said the review provides a rigorous and comprehensive evaluation of how far the Overseas Territories already match international standards and good practice and makes recommendations for action to improve and strengthen financial services regulation in the Overseas Territories. "I look forward to seeing their plans for implementation linked to a specific timetable which each Overseas Territory has committed to publish by 15th January 2001."
It has been mutually agreed that the Overseas Territories, where applicable, will give priority to three particular recommendations made in the KPMG report. These are legislation for the establishment of independent regulatory authorities; any necessary enhancements to their laws and systems to combat money laundering; and introducing legal powers that would allow regulatory authorities to obtain key information and share this with overseas regulators in order to assist their investigations. The BVI Leader said implementing the recommendations is integral to the BVI's commitment to being in the top echelon of offshore financial service centres. "I am tabling it today before the BVI Legislature and will circulate it widely within the BVI for public comment." He said his government looks forward to continuing to work closely with the British Government as it takes the report forward. The British government intends to work closely with each OT to put in place suitable measures and expect to see the necessary steps substantively in place by September 30th, 2001. According to Ms. Johnson, prompt and firm action in this regard will demonstrate to the global financial community the strength of the Overseas Territories' commitment to international standards. Baroness Scotland, Parliamentary Under Secretary of State in the Foreign and Commonwealth Office responsible for the Overseas Territories, added her appreciation for the efforts made by all concerned with the delivery and publication of the review. "In an increasingly competitive global economy, maintaining a reputation for seeking to attract only clean and well-regulated business is vital." The publication of the report was also welcomed by the Hon. Victor Banks, Minister of Finance in Anguilla; Bermuda's Minister of Finance Hon. C. Eugene Cox; the government of the Cayman Islands and Chief Minister Hon. Derek Taylor of the Turks and Caicos Islands.
At a recent meeting in London attended by Ministers, senior officials and regulators from the OT's and the UK, they concluded that each Overseas Territory would publish, by 15th January 2001, a response to the recommendations addressed to it, together with a timetable for implementation. In addition, following appropriate consultation and parliamentary approval within each OT, the core recommendations relating to independent regulatory authorities, anti-money laundering regimes and exchange of information, would be substantially implemented by September 30th, 2001. It was also announced that the UK would be willing to provide appropriate assistance to Overseas Territories in their bilateral and/or multilateral negotiations with other entities in matters relating to regulation and exchange of information. Following presentation of the report, Chief Minister O'Neal paid tribute to Director of Financial Services Mr. Robert Mathavious for his invaluable service to the territory in the area of financial services. He also paid tribute to former Attorney General Ms. Dancia Penn Q.C and current A.G Hon. Cherno Jallow for their roles in the process.
CONDOLENCES
The 14th sitting of the 1st session of the 14th Legislative Council was convened primarily for the purpose of tabling the KPMG report, but also heard Legislators expressing condolences to At-Large Representative Hon. Eileene Parsons, whose daughter died earlier in the week. The Leader of the Opposition was expected to lay a Report of the Public Accounts Committee on the "Examinations of the Rehabilitation of the Little A Race Track" on the table. This was however deferred. Several Legislators used the opportunity to comment on the report tabled. Member for the 8th District Hon. Lloyd Black said he hoped that the Opposition would be included in the planned public consultations. Representative for District 4 Hon. Mark Vanterpool commended the Chief Minister and the Financial Services Department for their hard work in maintaining the integrity of one of the main economic pillars in the BVI. He said he hoped this area would continue to be strengthened but suggested that similar emphasis needs to be placed on the other economic pillar - tourism.