BVI registered company information is not safe! good news for transparency advocates but bad for the islands number one direct and indirect income generator as corrupt officials of the BVI governor's office release several BVI registered companies’ information to British Foreign Office following a request by email which sets a precedence for circumventing the Mutual Legal Assistance Treaty processes to cause harm to the true owners of subject companies.
Financial Fraudster News investigation team has been given information from a BVI whistle-blower that sensitive company information of companies registered in BVI can be easily accessed by the British Government simply by a request by email from the Foreign and Commonwealth Office (FCO) circumventing the Mutual Legal Assistance Treaty (MLAT) processes in place supposedly for any government third party seeking relevant information from a state.
The cases in question were leaked and involve three companies Ashton Global Investment Ltd, Kinloss Property Ltd and Capitana Seas Ltd thought to be owned by the Gaddafi family or associates but where in fact sold and are now owned by British based individuals and companies.
In 2011 the British Government were obligated to comply with Article 5 of the EU Mutual Assistance Convention 2000 (MLAC), EU Member States must send procedural documents directly to the person concerned, unless one of the reasons in Article 5(2) applies. Failure to do so may result in the request being returned to the requesting authority.
In 2011 Financial Fraudster News investigation team received documents that show how the corrupt officials within BVI Government turned a blind eye when the FCO sent an email to the BVI Governor’s office requesting that details of the said companies of which the BVI government stated was private and who duly complied with the FCO request contrary to the processing norm required in any MLAT application.
The United Kingdom is to force its overseas territories, including the Cayman Islands, British Virgin Islands and other well-known corporate secrecy havens, to reveal the names of the ultimate owners behind companies in these remote locations.
Global Witness, a nonprofit campaigner against corruption, said the U.K.’s intervention was “a huge win in the fight against corruption tax dodging and money laundering.”
Those representing the corporate services industry in some U.K. overseas territories reacted angrily to the news. Robert Briant, acting chair of BVI Finance, said the U.K. had “shot itself in the foot” and argued that it could call into question the viability of the BVI’s financial industry.
Despite having a population of less than 31,000, the BVI currently has about 417,000 active companies on its register. They hold assets around the world worth an estimated $1.5 trillion
An insider stated "in 2016 the BVI Financial Services Commission (FSC) imposed the $440,000 administrative penalty against Mossack Fonseca's BVI operation on Friday, citing eight breaches of BVI's Anti-Money Laundering and Terrorist Financing codes and its Regulatory Code including failures in risk assessment, due diligence and identification procedures at the law firm.If this allegation is true what mechanisms are in place to punish itself."
Financial Fraudster News has contacted both the BVI’s Governor’s office and the UK Foreign Office both parties have declined to comment.
