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by pltm
(PLTM) - More than two months after the United Kingdom’s (UK) decision to leave the European Union (EU), Harney Westwood and Riegels law firm in the British Virgin Islands has contributed to the predictions and speculations of the impact such a decision would have on the Territory.
The people of Britain voted for a British exit or Brexit from the EU in a historic referendum on June 23rd 2016. A total of 51.9% or approximately 17,410,742 persons voted to leave, while 48.1% or approximately 16,141,241 persons opted to remain.
On the heels of the Brexit, BVI Platinum News reached out to the law firm for their prediction of the decision’s impact on the Territory, but the company chose to withhold comments and added that it was too early to say.
In a release published earlier this month by senior associate of the company, Mr. Oliver Bell, he noted that Brexit will have great impacts on the financial services industry in the BVI.
He highlighted that one key concern for the Territory’s financial industry is the loss of the UK’s influence in developing EU regulations and legislation that directly affects the financial services industry.
Bell said that a concern to the BVI is the EU’s exercise to create a list by the end of 2017, made up of countries they [EU] deem as problematic tax jurisdictions---the Black List.
He noted that although a similar exercise is being conducted by the Organization of Economic Cooperation and Development (OECD), where based on its objective criteria, including compliance and the organization’s standards for exchange of tax information, the BVI is highly ranked, “the EU process, in contrast, is highly political. With the UK absent or marginalized in negotiations, there is a real risk that this list becomes primarily an attack on low-tax jurisdictions.”
Bell added, “This could be problematic for the BVI despite its full compliance with OECD transparency requirements and FATF anti-money laundering and terrorist financing standards.”
On a positive note, Bell highlighted that despite the Territory having strong links to London, both constitutionally and economically, its outlook is global with its ties to the US, Asia, Africa and South America.
“Any slowdown in work originating from the UK and the rest of Europe is unlikely to have a lasting or significant effect on the BVI’s Business.”
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