Mr Kenneth B. Baker, Managing Director and CEO of the Financial Services Commission (FSC) has disclosed that many Virgin Islands’ stakeholders, particularly in Hong Kong and London, have expressed strong opposition to full public access to ownership records. Photo: FSC/File

The financial services sector in the Virgin Islands (VI)– one of two key financial pillars for the Territory- is facing an estimated 20 to 30 percent decline in business following mounting pressure from the United Kingdom (UK) to increase public access to beneficial ownership information. Photo: VINO/File

From left: Mr Damion C. Grange, Mrs Violet Thomas Gaul and Mr Kenneth B. Baker, the Managing Director and CEO of the Financial Services Commission (FSC), during a Live discussion on Talking Points on ZBVI 780 AM on February 3, 2025. Photo: Facebook

This concern was laid bare by Mr Kenneth B. Baker, Managing Director and CEO of the Financial Services Commission (FSC), during a Live discussion on Talking Points on ZBVI 780 AM on February 3, 2025.

Speaking with hosts Violet Thomas Gaul and Mr Damion C. Grange, Mr Baker was adamant that while the Territory has upheld global financial transparency standards, the UK’s demand for full public access to company ownership details threatens the jurisdiction’s competitive advantage.

“The impact is likely to be very significant, very significant,” Mr Baker cautioned, and disclosed that “....somewhere in the range of 20, 30 or more percentage fall-off in the level of business; Because if your clients are not happy with it and they don’t want it, they have options, and they can go to other jurisdictions.”

Legitimate interest

Meanwhile, Mr Baker during the discourse also disclosed that many VI stakeholders, particularly in Hong Kong and London, have expressed strong opposition to full public access to ownership records.

“Clients are telling us they don’t want public access,” Mr Baker revealed and if we do [allow it], then they may consider moving elsewhere. The UK is saying we want full public access, The [BVI] government has said, okay then, let’s have access, but you have to demonstrate legitimate interest.”

Under this compromise proposal, individuals or entities seeking ownership data must submit an application outlining their legitimate interest in the information.

“If you are representing a newspaper, for example, and you want to conduct an investigation, you would have to file an application for access; Then, in theory, the commission would send a request to the beneficial owner, informing them that an investigation is being conducted and asking if they have any objections.”

UK hypocrisy

A major sticking point in the debate is the inconsistency in financial regulations between the Virgin Islands and the UK, with Mr Baker outlining that while the UK demands public access to VI company ownership data, its own system lacks the same robust verification mechanisms.

“The UK doesn’t regulate trust companies the way we do; There are a number of stories that have been published telling you that persons have searched (UK’s) Companies House and found thousands of persons listed as ‘Donald Duck’ as the ownership of a company.”

With this in mind, he reiterated that, unlike the UK, the Virgin Islands ensures that all ownership records are verified and meet international compliance standards.

“As it relates to our system, we’re saying if access is justified, then it’s available, and our information is accurate based on international standards.”

VIRRGIN & Data Control

Additionally, Mr Baker noted that the VI has been transitioning beneficial ownership information from the Beneficial Ownership Secure Search (BOSSs) system to VIRRGIN, a registry housed within the FSC.

This move, he said, aligns with updated Financial Action Task Force (FATF) standards, which mandate that beneficial ownership records be held by a public body with mechanisms in place to test data accuracy and assess risk.

“From the beginning of this year, that information is no longer being updated [on BOSSs] because it’s now being held in VIRRGIN; That information will be held securely for the next five years for what we call international cooperation.”

Under the current regime, only designated authorities—including the Financial Investigation Agency (FIA), the International Tax Authority, the Attorney General’s Office, the Governor’s Office, and the FSC itself—have direct access to beneficial ownership information. However, law enforcement agencies, including those in the UK, can request access when conducting criminal investigations.

Meanwhile, with the consultation deadline set for the end of February, the VI government faces a critical policy decision that could determine the future of its financial services sector and according to Mr Baker, “It’s a public government policy. The government will have to make a decision on that; What I can say is that public access is not what our clients want.”