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EU Directive a greater threat to VI’s Financial Services than ‘public registers’—Farara QC

The alarm was sounded on Tuesday, August 21, 2018, when prolific VI Attorney, Gerard St C. Farara QC, appeared as a special guest on Claude O. Skelton-Cline’s, Honestly Speaking. Photo: VINO/File
Gerard St C. Farara QC (at left), told, Honestly Speaking host, Claude O. Skelton-Cline, “it cannot be business as usual.” Photo: Team of Reporters
Gerard St C. Farara QC (at left), told, Honestly Speaking host, Claude O. Skelton-Cline, “it cannot be business as usual.” Photo: Team of Reporters
EU Directive a greater threat to VI’s Financial Services than ‘public registers’—Farara QC. Photo: Internet Source
EU Directive a greater threat to VI’s Financial Services than ‘public registers’—Farara QC. Photo: Internet Source
ROAD TOWN, Tortola, VI – The Virgin Islands (VI) is currently at risk of being ‘blacklisted’ by the European Union (EU) and this poses an even greater threat to the Territory’s Financial Services Industry and its economic wellbeing, than that of the United Kingdom (UK) imposed, ‘public registers’ Order.

This, since the EU’s directive mandates the VI diversify and add ‘substance,’ to its Financial Services Industry, with a December 31, 2018, deadline.

The alarm was sounded on Tuesday, August 21, 2018, when prolific VI Attorney, Gerard St C. Farara QC, appeared as a guest on Claude O. Skelton-Cline’s, Honestly Speaking, and the state of the VI Financial Services and general economic wellbeing took centre stage.

Business as Usual

According to Mr Farara QC, “it cannot be business as usual.”

He explained that traditionally the VI’s Financial Services Sector has been centered on the incorporation of businesses, as against other offshore jurisdictions, such as the Cayman Islands.

“Some people are more concerned about the EU directive and its implication for the Industry in the BVI than they are about the public registers of beneficial ownership,” he raised.

According to the prominent VI Queen’s Counsel, this is the view of industry experts, “and that is because that (EU) Directive is saying on one hand, first of all, there is not sufficient substance in the industry in the BVI (British Virgin Islands) and unless you take the measures to bring into the industry greater substance—and they haven’t actually specified what they mean by that.”

Shifting Goal Posts

This, he said, also in itself, poses an inherent danger, because “on one hand there is a measure of flexibility that you think is afforded to you but it might provide an opportunity for the goal post to keep moving on you.”

He was adamant nonetheless, if satisfactory measures are not put in place by the end of the year—by the current administration in office—then “essentially the BVI gets blacklisted in the EU.”

The implications, he explained, is that banks and financial institutions throughout the EU, would not be accepting transactions that involved the VI “and that is considered far more critical and potentially damaging to the industry.”

6 Responses to “EU Directive a greater threat to VI’s Financial Services than ‘public registers’—Farara QC”

  • The TRUTH (23/08/2018, 11:12) Like (13) Dislike (7) Reply
    The aim is to destroy the economy plain and simple. Our people have been duped by the Europeans once again. Our clueless leaders have taken us to the point of no return while mocking those of us that had reservations about the path that we had embarked upon. The chickens are now coming home to roost and its not a good situation. What is needed is leadership that is prepared to make tough decisions. The people must be made to understand what the real situation is.
  • E.Leonard (23/08/2018, 14:42) Like (10) Dislike (0) Reply
    There are dark, gathering financial clouds swirling over the BVI; first it is the UK with registers of beneficial ownership and now the EU black listing threats. The BVI had a good ride with financial services; it boosted the VI standard of living, quality of life and per capita income. It contributes approximately 60% of government revenue, permitting government to deliver a higher level and quality services. Every effort should be exerted to strengthen, deepen, improve and sustain financial services. Nonetheless, though it contributes the majority of government revenue, the reality it is a fragile economic sector. Tourism and financial services, the twin pillars of the BVI economy, are two fragile and unsteady legs on the economic chair. . Thus, aggressive, focused, urgent and unrelenting effort are needed to diversify the economy. Economic diversification must be another item on new government bucket list.
  • just asking... (23/08/2018, 17:42) Like (7) Dislike (0) Reply
    Is he running or not?
    • Reply (23/08/2018, 18:24) Like (3) Dislike (1) Reply
      YES but not with fraser party lol
      • @Reply (23/08/2018, 20:41) Like (4) Dislike (0) Reply
        @Reply, what is the name of the Fraser party and who are the members? It is an open secret that he is forming a party yet not a peep from the supposed Liberator. What is he waiting for, Xmas?
  • Short Memory (24/08/2018, 08:27) Like (2) Dislike (1) Reply
    Farara QC worked for the very people implementing ridiculous demands on banking customers. He was one of
    their lawyers! So now he's so freedom loving and democratic? Come on now.


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