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by pltm
(PLTM) - As the BVI continues to fight off the onslaught of negative international press on its financial services industry, the Territory has recorded a massive decline in company registrations, so far for this year.
It came to light this month, that at the end of first quarter 2017, the number of active companies registered in the Territory was 421,776, compared to 466,081 during first quarter 2016, representing some 44,305 less companies.
Premier and Minister of Finance, Hon. Dr. D. Orlando Smith has attributed the decline to the negative press, and the issue of de-risking, as it relates to banks that do business in the BVI.
"During that time there were several factors, including two major issues; the de-risking of the banks, which continues because of that, issues with clients opening accounts of BVI companies," Premier Smith said in the House of Assembly when pressed on the matter.
He added, "And negative press by Panama Papers, and other negative press, particularly in the UK."
Opposition Member, Hon. Julian Fraser asked the Premier if he is hopeful that this issue can be reversed.
"It is being reversed. There were a lot of work done by this government, other governments in the region (on de-risking). That work is still ongoing. We see that there are some responses; some indication of change happening," Premier Smith said.
The Finance Minister also disclosed that the revenue realized by the Financial Services Commission (FSC) at the end of the first quarter 2017 was $29,595,024.12.
"For 2016, that figure was $28,061,168.70. These figures include company license fees, as well as monies collected in relation to administrative penalties, court ordered receipts and interest, and other income."
Hon. Fraser then queried that even with the reduction of close to 45,000 companies, the revenue of the FSC seems to be basically the same, "So it must be an improvement of the products you are selling."
However, Premier Smith reiterated that there is other income being generated besides company registration fees, such as administrative penalties and court orders.
