British Virgin Islands Ranked High in Global Financial Centres Index

The 15th edition of the Global Financial Centres Index (GFCI) has named the BVI as a top five offshore finance centre. In total, among financial centres, it is in the 44th place, followed by 39 other countries. In GFCI15 report, 29 financial centres got higher positions in the ranking, 47 countries lost their positions, and 4 remained in the same place.

The GFCI report appears two times a year, providing profiles and rankings for global financial centres based on instrumental factors and the online survey results. It is an influential report in the financial world. 

Premier and minister of finance of the British Virgin Islands, Dr Orlando Smith commented on the results of the report: “This rating is testament to the comprehensive legislative and world class regime for financial services business that exists in the BVI today… The strong performance of the BVI can also be attributed to the strength of our independent regulator. This has been acknowledged and endorsed by several independent supranational standard setters and underpins my government’s belief that good regulation is good for business.”

BVI Government Initialled FATCA Inter-governmental Agreement

The BVI and the US government concluded negotiations on the inter-governmental agreement (IGA) concerning the US Foreign Accounts Tax Compliance Act (FATCA). The initialling of the final text of the agreement now can be followed by its implementation in the British Virgin Islands. 

Upon signing of the agreement, foreign financial institutions in the jurisdiction that are required to comply with US FATCA, will be able to report certain information on US account holders to the BVI International Tax Authority who would automatically exchange information with the US government. 

By words of BVI Premier and minister of finance, Dr Orlando Smith, “The initialling of the FATCA IGA is another important signal of BVIs commitment to global standards on transparency.”

The conclusion of negotiations on the agreement was preceded by long lasting dialogue with the US Treasury in which the BVI government negotiated and received some exceptions for relevant entities such as non-profit organizations and pension plans and their accounts. Now the BVI is to put into place shortly the final legal and administrative procedures to facilitate the implementation of the agreement.

Distribution of Budget 2014 by BVI Government

The budget approved by the House of Assembly by the end of the budget process was US$302,306,000, while previously it had been US$301, 746,000, being announced in January by the British Virgin Islands Premier and Minister of Finance, Hon. Dr. Orlando Smith. Projected taxes, as part of revenue, make US$282,659,000, and other fees are planned to account US$19,091,000.

Also, for 2014 the presented operating expenditure was US$248,349,500, US$180,730,100 of them for wages and salaries. BVI Government is also planning to place some US$15.5 million into the Reserve Fund. 

According to the approved expenditure by the House of Assembly, the BVI Government committed to undertake US$26,986,000 in capital works disbursed as the Deputy Governor, US$215,000; Premier, US$800,000; Ministry of Finance, US$200,000; Ministry of Natural Resources and Labour, US$4,150,000; Ministry of Education and Culture, US$3,300,000; Ministry of Health and Social Development, US$4,375,000; and Ministry of Communications and Works, US$11,350,000.