12 March 2019 – BVI Finance today welcomed the European Union’s recognition of the BVI as a cooperative jurisdiction as it has delivered on its commitment relating to economic substance as defined by the EU.
As such the BVI has not been added to the EU’s list of non-cooperative jurisdictions. This decision reflects the BVI Government’s ongoing cooperation with the European Union.
As part of this, the BVI Government recently passed the necessary legislation to address the EU’s specific concerns in the area of substance – namely, The Economic Substance (Companies and Limited Partnerships) Act, 2018.
The EU is undertaking further work during 2019 to define appropriate economic substance requirements for collective investment vehicles. The BVI Government have expressed their commitment to continuing to work cooperatively with the EU to deliver a satisfactory outcome.
Commenting on the decision, Elise Donovan, Chief Executive Officer of BVI Finance, said:
“We welcome the EU’s recognition of the BVI as a cooperative jurisdiction. We have always had substance and will take steps to add further substance following the passage of the Economic Substance (Companies and Limited Partnerships) Act, 2018.
“In the meantime, the Premier of the BVI has already instructed officials to continue positive engagement and discussions with EU officials to ensure additional technical issues are addressed as soon as possible, to ensure our status as a leading compliant financial centre is duly recognised.
“Alongside this, BVI Finance will continue to work to cement our position as one of the world’s preeminent destinations for enabling international trade, business and investment thanks to our skills, expertise and strength of proposition.”