BVI Financial System Undergoes Review

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The British Virgin Islands (BVI) has undergone a comprehensive review of its financial regulatory policies and financial stability. The review focused on regulation and supervision, as well as matters related to the soundness of the financial system and its ability to cope with stress.

International Cooperation Regime

As part of this review, the International Monetary Fund (IMF) assessed the BVI’s international cooperation regime. The IMF noted that there are no legal impediments to information sharing either domestically or internationally. The IMF also commended the BVI for its active participation in regional and international cooperation, demonstrating a willingness and ability to be a full partner in international information sharing and cooperation.

Caribbean Financial Action Task Force (CFATF)

The CFATF is a Caribbean regional institution established to implement compliance standards and design appropriate implementation measures in relation to money laundering, the financing of terrorism, and since 2012, the financing of proliferation. The BVI is a founding member of the organization and works actively in supporting and promoting the ideals and measures of the CFATF.

International Organisation of Securities Commissions (IOSCO)

IOSCO is the international standard-setter for securities market regulation. Its broad mission is to promote high standards of regulation so that securities markets everywhere are fair, efficient, and sound. With a membership comprising regulators with responsibility for around 90% of the world’s securities markets, IOSCO has welcomed the British Virgin Islands Financial Services Commission as an ordinary member.

OECD and Global Forum

Although the BVI is not a member of the Organisation for Economic Cooperation and Development (OECD), it has a close working relationship with it through its membership in the OECD Global Forum. The initiative relates to promoting tax competition by ensuring transparency and effective exchange of information. The BVI subscribes to the principle of transparency and the effective exchange of information and has been assessed by the Peer Review Group (the assessment organ of the Global Forum) in this regard on tax-related matters.

International Association of Insurance Supervisors (IAIS)

The IAIS is the international standard-setting organisation established to promote cooperation amongst insurance supervisors and other financial sector supervisors. Recognising the important contribution that strong supervisory regimes can make to financial stability, the IAIS provides an effective forum for standard-setting and implementation activities by providing opportunities for both practitioners and policymakers to share their expertise, experience, and understanding. The involvement of its diversified membership reflects a commitment to promoting a robust and effective insurance regulatory environment.

In summary, the BVI’s review highlights its commitment to international cooperation and adherence to global standards in financial regulation and supervision. The country’s participation in various international organizations demonstrates its willingness to promote financial stability and combat money laundering, terrorist financing, and proliferation financing.