The Territory’s Minister for Financial Services Dr the Honourable Natalio D. Wheatley (R7) has fired back at two recent articles in the UK-based The Guardian newspaper misleading the public about the Virgin Islands’ position on financial crime. Photo: The Guardian website/GIS

Many in the international financial services community have already condemned the two articles as left-wing propaganda with an agenda to force the UK Labour Government to bring hardship on the Virgin Islands' legitimate financial services sector. Photo: britannica.com/File

Financial Services Commission CEO Kenneth B. Baker has called out the double standards of the United Kingdom in the financial services sector. Photo: FSC/File

In a strongly worded statement, Dr Wheatley noted that his Government strongly refutes the recent allegations made against it “as part of a series of misinformed, misleading and malicious attacks”.

Bogus attack on the sector

The two articles claimed that the British Overseas Territory was not doing anything to avoid a financial crime crackdown. “This portrayal could not be further from the truth,” the Premier stated. As a leader in company regulation, the Virgin Islands (VI) is a strong partner of the United Kingdom and other jurisdictions in the global fight against financial crime and ongoing international efforts to uphold the integrity of the world economy and global financial system, the statement noted.

In the two malicious articles against the VI, The Guardian tried to make it seem like the jurisdiction is protecting financial criminals. However, in setting the record straight, the Premier noted that “for more than 40 years, the VI has established a proven track record of meeting and exceeding international transparency standards, participating fully in initiatives such as US FATCA, the Common Reporting Standard, and the Base Erosion and Profit Shifting framework – all essential initiatives to combat tax evasion. Moreover, the territory has painstakingly negotiated over 100 tax information exchange agreements underpinning effective cooperation with governments and law enforcement agencies worldwide”.

Providing more solid information to defuse the deliberately misleading article in the UK-based tabloid, the statement noted that “In addition, the Government has invested millions of dollars and additional resources in developing a market leading beneficial ownership platform that is available to law enforcement and tax authorities globally, providing rapid access to company ownership information on suspected criminals, supported by new legislation and a new regulatory regime”.

UK is the real tax haven?

Dr Wheatley said “We have collectively built a financial services industry that we are proud of. One in which our network of registered agents is held to the highest regulatory standards by the Financial Services Commission with non-compliant firms facing fines, licence suspensions or revocations”.

It is important to note the fact that “this level of oversight is far stricter than UK Companies House, which requires absolutely no verification of beneficial owners or due diligence on company formations despite being home to 4.3 million businesses,” Premier Wheatley cleared up.

The two attacks from the UK tabloid were malicious because they know “far from being a safe haven for nefarious activity, the territory is actively engaged in global anti-corruption efforts, committed to supporting and empowering law enforcement activity critical to this fight. It works tirelessly with the UK’s National Crime Agency, HMRC and Serious Fraud Office who have immediate access to the jurisdiction's beneficial ownership, and which has helped them successfully pursue financial criminals. The territory has also effectively imposed UK sanctions in response to Russia's invasion of Ukraine”, all information known to The UK-based Guardian.

VI is the best jurisdiction globally

The Minister said in his statement released yesterday February 5, 2025, that “the coordinated attack on the jurisdiction serves to mislead the public and pressure the UK Government to take colonial measures against the territory with whom they constructively engaged. Financial crime is a global issue and tackling it effectively not only requires regulation, transparency and collaboration but also fairness and honesty amongst all stakeholders.”

Many in the international financial services community have already condemned the two articles as left-wing propaganda with an agenda to force the UK Labour Government to bring hardship on the tiny British Overseas Territory of some 35 thousand residents by removing its legitimate financial services sector and economic pillar.

Earlier this week, Financial Services Commission CEO Kenneth B. Baker highlighted the hypocrisy of the UK, which is known for soft regulations and double standards in the sector.