The House of Assembly suspended its usual rules on Monday to introduce and pass two financial services bills designed to avoid international sanction by bringing the territory in line with global standards set by the Paris-headquartered Financial Action Task Force.
Deputy Premier Lorna Smith introduced the proposed laws — the Financial Services Commission (Amendment) Bill, 2024, and the Limited Partnership (Amendment) Bill, 2024 — and explained their objects and reasons.
The ongoing reform drive, which saw six other laws rushed through the HOA on Sept. 4, is part of the government’s bid to keep the territory off the so-called “grey list” of countries that require increased monitoring from the FATF.
The threat arose in the wake of a Mutual Evaluation Report released in February by the FATF’s Caribbean branch, which harshly criticised the territory’s performance in battling dirty money.
FSC bill
On Monday, Ms. Smith, who is also the minister of financial services, labour and trade, introduced the FSC amendment first.
Among other provisions, she said, the bill aims to “broaden” the FSC’s “capacity for cooperation with both foreign regulatory and nonregulatory entities;” bring “crucial changes in how consumer rights are protected;” and provide “significant updates to the penalties under the principal act.”
The bill would also require FSC employees to “disclose any personal, professional, business or financial interests,” Ms. Smith said.
Debate
Premier Dr. Natalio “Sowande” Wheatley, Opposition Leader Ronnie Skelton and opposition member Marlon Penn also contributed to the debate.
Mr. Penn (R-D8) spoke in support of the bill, highlighting the “tradition of bipartisanship when it comes to dealing with matters of financial services.”
However, he added that he would like more details related to the rising cost of insurance in the territory.
“We’ve had a lot of discussions here in this House, Madam Speaker, and in the public space, where persons are deeply concerned in terms of the conduct of insurance companies in the territory,” he said, adding, “We are seeing areas where premiums are rising from $5,000 to $20,000 in some instances for persons who own homes in the Virgin Islands.”
Later, Ms. Smith told the HOA that the government is already working to address the rising cost of insurance.
“I don’t want to fool anybody into thinking that the solution is there today or tomorrow, but it is an area that we are working on … at full speed,” she said.
Also during the debate, Dr. Wheatley and Messrs. Skelton and Penn noted their dissatisfaction with the way the VI’s financial services industry has been characterised.
Additionally, Mr. Skelton noted that the amendment would increase penalties and spoke of a need to “protect local businesses.”
After the public debate, HOA members went into a closed-door committee session to discuss the bill before returning the same day to pass it with amendments.
The bill, which now awaits the governor’s assent, had not been Gazetted or otherwise made public as of Beacon press time yesterday afternoon.
LP amendment
After the FSC amendment passed, Ms. Smith introduced the Limited Partnership (Amendment) Bill, explaining that it aims to meet recommendations from the recent CFATF report.
For example, she said, it addresses issues raised by the report “related to the transparency of beneficial ownership information.”
“A key amendment requires limited partnerships to file registers detailing general partners, limited partners and beneficial ownership information with the registrar of corporate affairs,” she explained.
No public debate
No House member debated the bill, and it passed with amendments after members returned from discussing it in a short closed-door committee session.
The bill, which awaits the governor’s assent, had not been Gazetted or otherwise made public as of Beacon press time yesterday afternoon.
