CM reaffirms confidence in Financial Services Industry

Chief Minister and Minister of Finance Honourable Ralph T. O’Neal said Tuesday the British Virgin Islands can be a significant player in the industry worldwide.

Speaking on the subject during a press conference of his ruling Virgin Islands Party, he elaborated on the financial services sector, one of the territory’s economic pillars.

The Chief Minister explained that there must be that income coming in that enables any government to carry out programmes. He said in the case of the BVI, the financial services industry brings in the most direct revenue, whereas tourism and construction employ more people.
“So we hope that the financial services will continue to be enhanced and protected,” he stated.

In terms of advances in the sector, he pointed out that government has passed the Financial Services Commission bill and set up a regulatory body and the BVI Finance Centre was also established as a unit for promoting the BVI as a finance centre in order to meet internationally accepted standards.

Financial services has been the engine driving the development of the territory over the past decade. According to Mr. O’Neal, this has enabled government to invest in the infrastructure, schools etc.
However he pointed out that the industry is undergoing global scrutiny by larger countries in wake of the wars against terrorism, drug trafficking and money laundering and “we have to keep our guard up.”

In addition, there has been an economic slowdown in some of the more developed countries of the world and the Chief Minister noted that the smaller countries entering the business are providing some competition as well.

“We believe that the BVI can be a significant player in the industry worldwide and should continue to be a clean and expanded jurisdiction,” the Finance Minister declared. “We need to show the world that we’re keeping it clean and that we don’t condone money laundering.”

He said the BVI must face the global realities in fighting illegitimate activities and close cooperation with all parties is the key. He said the industry can survive and prosper if the territory cooperates with entities seeking the best interest of the customer and the world community. 
According to the Chief Minister, financial services should not be used to promote, hide or cover illegal activities. 

“In order to do those things, we must have certain strategies in place,” he continued. These include supporting the promotion and regulation of intelligence gathering, continued full support of the Financial Services Commission, financial resources legal services and policy direction and establishing industry promotion offices and mechanisms in key financial centres overseas. 

The BVI leader said the industry must support the greater involvement of BV Islanders in all facets including employers, employees and owners of assets.

He said people need to be aware of the benefits of the industry, that it is the industry that brings in the money the territory needs to keep the economy fuelled.

The Chief Minister said efforts are underway to expand and diversify the sector into new products, such as Mutual Funds and asset management. The BVI is already leading in certain areas, such as International Business Companies formation. 

He said another area is that they must maintain the BVI in a competitive pricing position, support and facilitate the application of modern information and communication technology in the business of the industry.
He said programmes that must be developed include establishing an Economic Intelligence Promotion and Regulations Unit and a Financial Services promotion unit in London. 

Also at Tuesday’s press conference were Deputy Chief Minister and Minister of Communications and Works Hon. Julian Fraser, Candidate for the 4th District Mark Vanterpool and At Large candidate Irene Penn O’Neal.
They discussed the recent laying off of 11 workers from Citco Bank BVI Ltd. and reiterated that the treatment of the workers was inhumane and the timing poor in light of the global economic downturn.

Another company Ansbacher was expected to be officially sold to Trident Trust on Friday with another several workers to be laid off.
The Chief Minister said the territory is in position where it’s not a producer of a strategic product such as oil. “We are giving services and when in this industry, there is no certainty it will continue all the time as one would like…there would be ups and downs, but we must strike a balance so there isn’t much hurt.”