Premier Dr The Hon. D. Orlando Smith has said there is no division in the legislature where the Territory’s response to FATCA issues is concerned. Photo: VINO

Third District Representative Hon. Julian Fraser, RA had charged that the Premier was selling out the privacy of VI citizens to the United States in his attempts to facilitate reporting obligations under FATCA. Photo: VINO/File

Dr Smith also felt that further challenges lay down the road for the Territory’s Financial Services and indicated that this has been the case since the inception of the sector in the VI. Photo: VINO

In response to challenges brought by Third District Representative Hon. Julian Fraser, RA on the FATCA issue, Dr Smith said at a press conference on August 30, 2013, “[Hon. Fraser is] not in government”. He added that the legislature functions by majority, even when there is a vote being taken on any matter in the legislative council.

Hon. Fraser had charged that the Premier was selling out the privacy of VI citizens to the United States in his attempts to facilitate reporting obligations under FATCA.

Premier Smith said in a statement in response to Hon. Fraser’s charges recently that the government’s role with FACTA is to facilitate reporting obligations of the US citizens residing in the VI and also to reduce costs associated with direct reporting to the US government.

In response to a question suggesting that the Third District Representative was unaware of the facts before the Premier’s response, Dr Smith said, “I think that is a good way to put it.”

According to the Premier, there is no trade off between himself and the Third District Representative as he merely made a statement which was followed by a fuller statement explaining his point of view.

Premier Smith restated that from this month, there will be a public education programme conducted by government to inform the residents of the Virgin Islands of the full extent of what is required by FATCA.

“The reality is that the Financial Services is a very competitive Sector and we do what we have to do in order to facilitate the sector and that is one thing which we think is very useful to continue to promote the jurisdiction as a jurisdiction of choice, which is important as there are many other areas or countries that are also involved in Financial Services,” the Premier stated.

More challenges ahead for financial services

Dr Smith also felt that further challenges lay down the road for the Territory’s Financial Services and indicated that this has been the case since the inception of the sector in the VI.

“Since the inception of the Financial Services Sector here in the BVI, there has been continual challenges put up by new initiatives by the OECD countries by the FATF and other regulatory bodies and it is a constant progression of new initiatives put up by them or new challenges. We have always addressed those challenges and addressed those initiatives and the BVI has continued to have a very sustainable Financial Services Sector,” Dr Smith stated.

He added, “The BVI will continue to address the challenges that come and I’m sure that we will be able to continue to have a sector that continues to provide as it has for the BVI. The challenges of course will continue and they’ll get greater but we will have to do what we will have to do, look at the challenges and make adjustments where necessary to our model to be able to perform in the sector.”