The British Virgin Islands (BVI) face mounting criticism from Westminster over controversial plans to restrict transparency on corporate ownership, prompting accusations of a “shameful” effort to shield the jurisdiction’s role in money laundering and tax evasion.
A newly released consultation paper, proposing to limit public access to company registers and grant owners an advance warning of investigations, has infuriated MPs and anti-corruption campaigners who say it undermines the UK government’s push to combat “dirty money”.
Former development minister Andrew Mitchell has sharply condemned the BVI’s draft measures, arguing they display “total contempt” for Parliament’s demand for overseas territories to adopt publicly accessible registers of beneficial ownership (PARBOs). Mitchell and fellow MPs warn that the proposals would create an early alert system for “bad actors”, allowing them to liquidate assets and thwart investigations before law enforcement agencies can act. In addition, journalists scrutinising sensitive financial dealings would be exposed to potential legal threats and intimidation.
The row has heightened calls for the UK government to issue an “order in council”, a rarely used legislative tool that would compel the BVI to comply with transparency standards. The Foreign Office, meanwhile, has voiced disappointment with the proposals, indicating it will press the territory’s government to revise its approach. Should the standoff escalate, it risks creating a constitutional clash between London and the BVI over the future governance of financial secrecy rules in the territory.
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British Virgin Islands accused of ‘shameful’ bid to sidestep financial crime crackdown