BVI has taken a number of measures to enhance transparency

12.07.2013

On the official website of the British Virgin Islands government was published a strategic plan aimed at strengthening fiscal transparency and combating law abuses by legal entities.

The plan states that the main purpose of the measures is introduced to ensure transparency regarding the establishment and operation of legal entities, as necessary to maintain international standards in this area.

To achieve these goals the Government of the British Virgin Islands was approved several measures, some of which are already being applied. Those measures, for example, are:

- Active work on the conclusion of new agreements on the exchange of tax information. Currently jurisdiction signed 24 such agreements;

- Creation of the Office of International Taxation, which is competent to interact with competent authorities of other countries, on the questions about international taxation;

- The development of provisions for immobilization of bearer shares – measures for increasing transparency, which was first introduced by the British Virgin Islands. This measures were enacted in order to remove the anonymity of companies with bearer shares. Regulations on the immobilization of bearer shares have been successfully applied in the framework of BVI Business Companies Act 2004;

- The establishment in the British Virgin Islands of trusts and company service providers in the implementation of commitments in respect of anti-money laundering and terrorist financing, including the opening of beneficial owners. Also, there would be periodic checks of licenses about their complying with legislation.

Based on:

http://www.bvi.gov.vg/

Expert’s opinion

All the rumors about the leak of information about beneficial owners, directors and shareholders in the British Virgin Islands has done its work: the jurisdiction attract direct attention, and the government urgently take measures to increase transparency on the one hand (as far as possible in an offshore zone), and on the other hand trying to retain in the ranks of the country's financial center. We should mention, that financial regulator did great job, to quiet lawyers and providers, ensuring them that all measures are taken to prevent not only the consequences, but also the repetitions of such situation.

Agreements about exchanging of tax information will definitely bring a positive effect on investments to the British Virgin Islands. Although, it is unlikely that in the next decade such agreements would be conducted by Russia or Ukraine

Irina Lomakina ( Director of Moscow office of “Honest&Bright” Company)