The Managing Director and Chief Executive Officer of the British Virgin Islands Financial Services Commission, Robert Mathavious, indicates problems facing the financial services sector.
The address is entitled ‘Challenges and Developments in the Regulatory Environment’.
Robert Mathavious mentions that turmoil within the global financial markets had placed the activities of offshore financial centres under greater international scrutiny and has given the enemies of the offshore world a renewed platform from which to intensify their attacks against offshore financial centres (OFCs).
Also BVI CEO indicates that increasing fiscal deficits in OECD countries, the near collapse of global banking systems and the failure of a number of blue-chip firms perceived as being of such systematic importance to warrant bailout by government have all evidenced the fragility of the world’s financial, stock and currency markets.
Mathavious points out that plans were already underway for a revitalised OECD initiative against so-called tax havens, with a clear distinction between countries that have effectively implemented standards and commitments on transparency and exchange of information on tax matters.
“All over the world, the climate against so-called tax havens is hardening as a result of the growing need for countries everywhere, particularly OECD countries, to boost tax revenues at a time when the recession is cutting their tax take,” says Mathavious. “Even more than in past years, for offshore financial centres in general, and particularly those like the BVI who are associated with the UK, these are challenging, daunting and stressful times.”
“We may very well be seeing the preconditions for a perfect storm bearing down on the OFCs. If we here in the BVI do not act promptly, pragmatically and sure-footedly to demonstrate that we are a legitimate, convenient, compliant and cost-effective jurisdiction with zero tolerance for the ethically challenged, for tax cheats, fraudsters and for any form of white collar crime, the threatening tsunami could sweep us off the offshore map.”
L.D.