USA brands VI as one of many money laundering countries in the Caribbean!
The Virgin Islands has been listed as one of some fourteen nations in the wider Caribbean that have been named by the United States as “major money laundering” countries in the 2016 International Narcotics Control Strategy Report (INCSR) released by the US State Department on Wednesday March 2, 2016.
According to the US State Department’s definition, a major money laundering country is one “whose financial institutions engage in currency transactions involving significant amounts of proceeds from international narcotics trafficking."
VI maintains it is well regulated
The Virgin Islands (VI) remain a UK overseas territory, with its economy dependent on tourism and the offshore financial sector. The VI continues to advertise itself as a well-regulated, legitimate, sophisticated financial centre offering accounting, banking, and legal services; captive insurance; company incorporation; mutual funds administration; trust formation; and shipping registration.
According to an article in Caribbeannewsnow.com, as of September 2015, the banking sector in the VI has assets valued at $2.4 billion.
However, the information from the American International Narcotics Control Strategy Report (INCSR) claims that the VI financial institutions receive significant amounts of proceeds from international narcotics trafficking.
The VI is on the list with countries such as Haiti, Colombia, Costa Rica, Guatemala, St Maarten, Venezuela, and the Dominican Republic to name a few.
Local reaction to report
Leader of the Opposition Hon Julian Fraser RA (R3), one of the few politicians who understands the financial services sector, writing today March 7, 2016 on his Facebook page, blasted the report and labeled the United States as a “hypocrite.” Hon Fraser, a former Deputy Chief Minister under a Virgin Islands Party (VIP) Government, went on to say that the countries listed as ‘Money Laundering’ countries “were all created by the United States.”
The feisty Leader of the Opposition asked readers not to waste time reading the report coming from the “world’s number one hypocrite- The United States of America.”
Meanwhile, Premier Dr The Hon D. Orlando Smith, when contacted by Virgin Islands News Online, said he would have to read the report before he can offer a comment.
Efforts to reach Managing Director/Chief Executive Officer of the Financial Services Commission, Dr Robert A. Mathavious and Executive Director of BVI Finance Mr Julien N. Johnson for comments were unsuccessful.
Financial Sector in decline under NDP
Many in the local Financial Services Sector are calling for a shakeup at the Financial Services Commission. It is unclear, if this is a call for the longtime head Dr Robert A. Mathavious to be replaced.
Critics have also claimed that the National Democratic Party (NDP) Government of Premier Smith has not done enough to protect the sector from international media attacks and its inability to address the concerns of the international community and media while it tries to censor the local media.
Under the VIP there was a concerted effort to protect the Financial Services Industry, including signing of many Tax Information Exchange Agreements (TIEA), with the NDP signing less than 10 compared to the VIP signing over 21 while in office [2007-2011].
Furthermore, there has been a decline in Company Resignation from 2011 after the NDP took office.
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39 Responses to “USA brands VI as one of many money laundering countries in the Caribbean!”
Mr. Frazer who out of power done read it and has a response. The NDP and Dr. Smith less they are on the way to destroying the Financial Services Sector it’s a SHAME!!
Yet another example of why the people made a bIg Big mistake last election such incompetence and failure from Smith
Fraser needs to be our Premier Fast Fast Fast
Finally a fair statement by Julian Fraser, where he does not try to blame the NDP for the US writing such an agenda-driven report. There is yet hope for Hon Fraser.
what little good is left in the world. Threatening everyone over tuppence and tea. Wish it would drop dead.
Once again, for all you dummies blaming the government, I guess you all missed the part where Fraser said not to waste time reading the report, which means, he does not buy it either... Are you people really this dumb or you all just don't read??? You blaming NDP and touting Fraser, when the same Fraser is saying America is hypocritical..
We created a lot of this “mess” in our Virgin Islands with political party affiliations; position appointments based solely on access and not on qualifications, experience, and proper attitudes (cronyism), victimization and discrimination, turning a blinded eye and or participating in corruption and other wrongdoings.
If we do not stand-up for a Government of Inclusion and deal with our pressing issues and stop kicking the can down the road until it gets crushed, we will no sooner find ourselves wondering- “what happened!?”