Financial services, which account for approximately 63 cents of every government dollar collected, continues to come under attack from external forces, including from the United Kingdom. Photo: VINO/File

Commentator Claude O. Skelton-Cline has issued a stark warning over what he perceives as the mounting global pressures on the Virgin Islands’ Financial Services Sector, describing the situation as an "undeclared war" that could severely impact the Territory’s economy. Photo: Facebook

The Virgin Islands—despite its small size—plays a major role in global financial transactions. This has made it the envy of larger nations, which have sought to harm the reputation of the territory as a financial services jurisdiction. Photo: VINO/File

Speaking during his March 4, 2025, broadcast of Honestly Speaking on ZBVI 780 AM, Skelton-Cline, publicly voiced his reservations over external forces—particularly the United Kingdom (UK), European Union (EU), and G7 nations—which he claims are seeking to impose stricter regulations on beneficial ownership

'Golden Goose' @ Risk?

Underscoring the sector’s immense contribution to the Virgin Islands' economy, Skelton-Cline revealed figures from the Financial Services Commission’s (FSC) latest available annual report, showing that in 2022, financial services generated $221,660,417 in fees for the government. In 2023, this figure surged to $252 million, while the Territorial budget has remained around $400 million—meaning, according to Skelton-Cline, that financial services account for approximately 63 cents of every government dollar collected.

“These are the ways in which we can be impacted,” he cautioned. "Some of the service providers are telling us if they want to have their way, you're not just talking about killing, busting the eggs from the golden goose, you're talking about destroying the golden goose that’s laying the eggs."

According to Skelton-Cline, industry insiders have warned that regulatory pressures could cause an immediate economic hit of $173 million, which would deal a crippling blow to the VI’s economy.

Global Target on VI

Skelton-Cline framed the increasing scrutiny as part of a larger geopolitical agenda, emphasising that the Virgin Islands—despite its small size—plays a major role in global financial transactions.

“We might be a small community, 23, 24 square miles, but do you know the trillions of dollars that flow through registered with the 400,000-plus companies as a legal jurisdiction in the Virgin Islands?”

As such, he argued that this global significance makes the territory a subject of intense discussion at high-level diplomatic meetings, including those of the G7 (previously G8 before Russia’s expulsion).

“When they sit and discuss global issues and matters of global implication and they look across the table at the United Kingdom and ask them, what are you all doing about the Virgin Islands? Listen, what do they say; If you’re not at the table, you’re on the menu.”

Leadership & Innovation

Given the growing threats to the financial services sector, Skelton-Cline called for urgent action, stressing that the VI must be proactive in protecting its economic interests. “We have to continue constantly to reimagine the Virgin Islands, to innovate and to recreate. I don’t know how much we are aware.”

According to Skelton-Cline, there is still time for the Virgin Islands to redeem itself and secure its future, but this requires strong and decisive leadership.

“We need the leadership and the supporting cast that will move this country further along.”

Skelton-Cline has since committed to provide further financial insights in the coming weeks, particularly focusing on the exact amount of global financial transactions flowing through the Virgin Islands.

Meanwhile, as financial service providers, government officials, and business leaders monitor how international regulatory pressures evolve, and more specifically the impact they may have on the Virgin Islands’ economic stability and sovereignty, according to Skelton-Cline, “We are on the menu; We have some time to redeem ourselves as a country, as a people.”