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by pltm
(PLTM) - Premier and Finance Minister, Hon. Dr. Orlando Smith said the issue of the United Kingdom (UK) requesting that the BVI establishes a Public Beneficial Ownership Register has been settled. The UK was requesting the automatic publishing, in full, lists of beneficial ownership of companies [who own offshore firms].
In December, Opposition Leader, Hon. Julian Fraser asked in the House of Assembly about the UK Government’s position under new Prime Minister Theresa May on the establishment of a Public Beneficial Ownership Register. In response, Premier Smith said the question of how beneficial ownership information is held in the Territory was settled on April 12th with the signing of the Exchange of Notes on Beneficial Ownership and Technical Protocol between the BVI Government and UK Government.
"The Exchange of Notes provides for enhanced exchange of beneficial ownership information between BVI and UK law enforcement. Under the agreement, the UK Government acknowledges the BVI’s corporate service provider (CSP) model as a similarly effective system to a public register of beneficial ownership," he said.
Premier Smith added, "The UK and BVI remain committed to the implementation of the Exchange of Notes on Beneficial Ownership and Technical Protocol, which will come into force in June 2017."
However, public records, including various media reports published by international and local press, including BVI Platinum News, show that the UK Government under former Prime Minister Mr. David Cameron had requested for British Overseas Territories (OTs) and Crown Dependencies to provide full public ownership details, but the BVI refused.
In May, it made international headlines when the BVI was not invited to Cameron’s anti-corruption summit in London, seemingly because of its refusal.
Following the incident, BVI London Office Director, Mr. Benito Wheatley said in no uncertain terms, that the BVI has always been willing to cooperate with international standards, but it has to go through the proper channels.
Also, in October, Premier Smith told the 2016 Business BVI Asia Annual Regional Conference in Hong Kong that the BVI’s position remains the same when it comes to beneficial ownership.
"...We are committed to supporting the development of a global regulatory framework that is fit for purpose. However, I want to reassure you that we respect the need that many BVI clients have for privacy. The debate on beneficial ownership and our part within that is a clear demonstration of our approach," he said.
Premier Smith said, "We have noted the calls for public registers of beneficial ownership and we have said no to public registries." Premier Smith said that the BVI's belief is that its own systems are strong and work well.
Meanwhile, at the December sitting of the House of Assembly, Hon. Fraser asked if Prime Minister May’s attitude towards the BVI differs from that of Cameron.
Premier Smith in response said that Prime Minister May was appointed to office on July 13th following the resignation of Cameron. He said that the tone of her Government over the past four months toward the BVI has been friendly.
"The BVI and UK are working constructively on a number of issues of common interest, which is a positive sign at this stage. While the Prime Minister initially indicated that she intends to crack down on individual and corporate tax avoidance with reference to large multinational corporations, she has made no mention of the BVI or other Overseas Territories," he said.
The Premier added, "Her focus was squarely on Brexit in recent months and getting the best deal for Britain with the EU. However, I am grateful to Mr. Cameron for his statement in the House of Commons while in office that BVI and other Overseas Territories should not be referred to as tax havens."
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