New BVI Government To Focus On Financial Sector

by Amanda Banks, Tax-News.com, London

02 July 2003

The newly elected Chief Minister of the British Virgin Islands, Dr Orlando Smith, has announced his government's intention to focus on the nation's crucial financial services sector during its first term in office, which he said contributes around 50% of the government's revenues.

Dr Smith was speaking at his first official engagement since the National Democratic Party assumed office earlier this month, and announced that: "I believe that an industry of such importance requires special attention from the government."

"We are committed to good governance, both in the general finances of the country and also within the financial services sector," the Chief Minister continued. "We believe that it is the well regulated centres with effective rather than onerous regulation that will succeed, especially if they meet the needs of clients with a high quality and efficient service. It is our every intention for BVI to fall into that category."

Dr Smith revealed that he will be holding discussions with industry leaders throughout the week in order to obtain a consensus about the best way forward for the BVI's finance sector. One suggestion already mooted by the new government is a 're-branding' of the BVI Finance Centre to the BVI International Finance Centre, which is intended to reflect the jurisdiction's role in the international private banking arena.

The Chief Minister acknowledged that the BVI finance industry has grown despite a paucity in knowledge of the sector from the country's political leaders in the past, and announced that residents need to be better educated about the important role the international finance sector plays in the life of the country.

"It is concerning that in the past, the industry seems to have developed almost in spite of government rather than because of the framework it has been given and this is why partnership is so important," Dr Smith noted, adding: "I cannot promise changes overnight, however, I can promise grown up government."

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