Opposition Comments on Budget Debates

Opposition Member and First District Representative Hon. Andrew A. Fahie noted in his comments on budget of the Territory that the Opposition did its best during the recent budget debates in the Fifth Sitting of the Second Session of the Second House of Assembly held on December 17 and 18, 2012. He said that the Opposition tried to save the British Virgin Islands from certain projects that are being done “in a highly questionable manner”, but he did not specify what kind of projects these were.

During the budget debates, Hon. Christopher criticized the airport extension project and especially the fact that full cost of it was not given.

According to Hon. Fahie, “The Budget process also clearly proved from the figures provided by the Ministry of Finance that the last Administration did not leave the country broke; however, although the empirical data clearly states such, the current Administration continues with the same old Marketing plan that the VIP left the country broke.”

Hon. Fahie concluded: “Overall we did our best and will continue to do our best to help this Administration to understand that it has to better prepare our people for what is ahead.”

BVI Remains the Second Top Country for HK Inward and Outward DI

Hong Kong’s Census and Statistics Department has issued the statistics of direct investments in country’s economy for the year 2011, where reported the increase of both inward and outward direct investments in Hong Kong economy by the end of 2011.

According to the published statistics, Mainland China remained the largest source and destination of HK direct investments. As the source of investments, at the end of the year Mainland China accounted for 36.3%, being the largest share of the total stock. The Mainland was also the most important destination for Hong Kong’s outward direct investments, with 42.1% share of the total stock by the end of 2011. 

British Virgin Islands was the second largest source of Hong Kong direct investments, with more than prominent share of 31.1%. As a destination of outward investment, the BVI was in the second place with 41.8% - again, very close to the leader of the statistics of HK investments, Mainland China.

In 2011, the stock of HK’s inward DI increased marginally by 0.9% from the year 2010, and achieved market value of almost HKD8.38 trillion. The total stock of Hong Kong’s outward DI increased by 8.3% from the previous year and reached market value of HKD7.95 trillion, with a ratio to GDP of 411%.

BVI FSC Updated Public Statements Issued By FATF

The Financial Action Task Force (FATF) issued public statement reaffirming its blacklisting of Iran and the Democratic People’s Republic of Korea. The public statement reproduced in original form on the website of the British Virgin Islands Financial Services Commission was issued as an update for the previous FATF statements.

The updated statement also identified jurisdictions with strategic anti-money laundering and combating the financing of terrorism (AML/CFT) deficiencies that have not made sufficient progress in combating them: Bolivia, Cuba, Ecuador, Ethiopia, Indonesia, Kenya, Myanmar, Nigeria, Pakistan, Sao Tome and Principe, Sri Lanka, Syria, Tanzania, Thailand, Turkey, Vietnam, and Yemen.

In the currently listed public statement, the BVI FSC advised the general public of the Anti-Money Laundering Regulations and the Anti-Money Laundering and Terrorist Financing Code of Practice to note the concerns expressed by the FATF with respect to the named jurisdictions, when dealing with customers or transactions involving any of the jurisdictions identified by the FATF public statement.

There is also a separate statement issued on the same date and named “Improving Global AML/CFT Compliance: On-Going Process”, where the FATF organization updated statements on some countries that have committed to working with it to improve their AML/CFT frameworks.