The British Virgin Islands Financial Services Commission issued public statements concerning the companies named E-Crypto Trade & Finance Group, Inc. and ZAR Solutions Limited, in order to protect the public interest, and the interests of any customers or creditors of these companies.
The commission informed that E-Crypto Trade & Finance Group, Inc. has never been incorporated in the jurisdiction, or received any license by the FSC to carry on any type of financial services business in or from withing the BVI. E-Crypto is circulating false certificate of incorporation and is soliciting investment business without the required authorization and licence.
The second company, ZAR Solutions Limited, has never been licensed or regulated by the Commission to carry on financial services business in the British Virgin Islands. It was incorporated in the jurisdiction on 21 July 2014, and is believed to conduct online forex trading and other investment related business without having the requisite licence from the Commission.
According to the new report by British company Capital Economics, the assets held offshore in the BVI jurisdiction are worth US$1.5 trillion, twice more than the 2010 statistics of the International Monetary Fund. Two thirds of the BVI-registered companies are for corporate structuring, meaning they are used for tax planning purposes.
By the Capital Economics estimations, offshore structures with British Virgin Islands companies allow to avoid up to US$750 million tax. Also offshore tools help businesses to maintain high level of secrecy, as BVI allows for less transparency than for example UK. The jurisdiction is convenient for UK businesses, as being a British Overseas Territory it applies legal system similar to the British one. The companies, many of which are British-owned, make billions of dollars in annual revenue.
The report stated that quarter of BVI companies are funds and investment tools, not the operating businesses, and 5 per cent are holding companies for property and family wealth.
The British Virgin Islands Financial Services Commission has been made aware that the company named Private Placement Associates has offered investments business services through its website www.privateplacement.ae/, while purporting to be licensed and regulated in the jurisdiction. It was confirmed by the Commission that the company under this name has never been incorporated in the British Virgin Islands or licensed by the BVI FSC to carry on financial services business in the BVI.
Also, according to the public statement issued by the Financial Services Commission, Private Placement Associates does not operate under the licence held by any entity licensed and regulated by the FSC.
The Financial Services Commission has issued public statement concerning the company named OKPAY Inc., to inform the public that the company has never been licensed or regulated by the BVI FSC to carry any type of financial services business.
The company OKPAY Inc. was incorporated in the BVI jurisdiction in November 2009, and is believed to operate the website at www.okpay.com to conduct online money services business without having received the requisite licence from the Commission.
The British Virgin Islands Financial Services Commission issued a public statement to protect the public interest and interests of customers and creditors of Eleuthera Insurance Limited, and to make the general public aware that this company is no longer licensed and regulated by the Commission.
Eleuthera Insurance Limited received a license from the Commission on 15 September 2010, to carry on general insurance business in medical malpractice liability. The license was revoked on 12 April 2017, as the company contravened some sections of the Financial Services Commission Act, 2001, having transferred part of its business to another entity without obtaining the prior approval from the FSC; also, the company failed to submit its audited financial statements and director’s certificate within 6 months of the end of the financial years 2014 and 2015, and failed to pay the required annual licence fee for the year 2016 by the due date.
An Advisory Warning was issued by the BVI FSC concerning the company named HOME BROKER. The company purported to be licensed and regulated in the jurisdiction and offered investments in binary options through its website at http://www.hbroker.ru/.
It was confirmed by the BVI FSC that the company known as HOME BROKER has never been registered or incorporated in the British Virgin Islands or licensed by the Commission to provide financial services in the territory. Members of the public were advised to exercise extreme caution if solicited at any time by, or conducting any business with, HOME BROKER, and asked to provide relevant information on this matter and any other questionable entities.
The British Virgin Islands Financial Services Commission issued Advisory Warning informing that The Terrorist-Asset-Freezing etc. Act 2010 (Overseas Territories) (Amendment) Order 2017 was ratified and extended to the British Virgin Islands on 8 March 2017. The Order amends the Terrorist Asset-Freezing etc. Act 2010 (Overseas Territories) Order 2011, which extends, with modifications, Part 1 of the Terrorist-Asset Freezing etc. Act 2010 to the Overseas Territories.
The amendments in article 4(3) change the definition of “designated person” in the principal Order, while the amendments in article 4(4) introduce requirements for the Governor to consult the Secretary of State before designating any person under the Act. Also, there are amendments that introduce requirements for the Governor to consult the Treasury before granting, varying or revoking a licence in respect of designated persons. The Order also makes some minor amendments to the principal Terrorist Asset-Freezing etc. Act 2010 Order.
German MEP Sven Giegold has demanded Britain to cancel all existing tax haven policies and cut its relationships with main partners in the British Commonwealth, as negotiations continue with Brexit. In his opinion, Prime Minister Theresa May would have to cut off UK ties with the British Virgin Islands, the Cayman Islands, Jersey and the Isle of Man.
The British Commonwealth states including the British Virgin Islands all currently trade with UK under existing EU rules and regulations. There are almost two and a half billion people living in 52 independent and equal sovereign states.
By words of German MEP who is Green party representative, “The Greens cannot accept that, post Brexit, the UK maintains such a degree of influence over financial markets legislation in the union… On the contrary the negotiations present a good opportunity to ensure that the UK does finally end all tax haven policies…This is in the best interest of Europe as a whole as well as more equality in Britain.”
However these demands have been treated as excessive by Ukip who said that the attempt to interfere with the UK strategic relationships is unacceptable.
The BVI Financial Services Commission published an advisory warning informing that the company calling itself Base2Trade that previously operated at www.base2trade.com and presented itself as being registered in the jurisdiction, appears to falsely claim to be headquartered in the BVI.
The Commission confirmed that Base2Trade has never been registered or incorporated as a business company in the British Virgin Islands, as well as never been licensed to carry on financial services business in or from within the territory.
The new nominee of Trump administration for Treasury Secretary, Steve Mnuchin, was asked by Senate about his intention to close down Caribbean tax havens. Members of the US Senate requested details of how it is expected to close the tax loopholes that allow American companies and individuals to use foreign subsidiaries in zero-tax jurisdictions to avoid taxation.
Specific focus of the request was on the Cayman Islands, because it became recently known how financial service professionals working in the CI use combinations of jurisdictions, among them BVI, Belize, Anguilla and others, to create a completely tax-free offshore vehicle with no identifiable beneficial owner.
Members of the Senate and the House of Representatives after the Panama Papers scandal confirmed the immediate need for effective tax reform to eliminate the situation with US non-taxpayers, and there is political pressure on future Treasury Secretary for a solution of this problem.