Reported by
The British Virgin Islands cracked open Wednesday its corporate secrecy regime that has made it a go-to jurisdiction for tax evaders and other financial criminals — but there’s a catch.
Breaking with its decades-long policy of total secrecy, BVI authorities may now direct company services agents to provide corporate information upon reviewing requests.
However, the new regulations stipulate that a company’s registered agent must be notified whenever authorities receive such a request.
Anti-corruption groups say this ruins the element of surprise, acting as an early warning system for bad actors while exposing the identities of the people investigating them — including journalists, and transparency advocates.
“A register that notifies company owners when their information is accessed is not compatible with global transparency efforts,” said Margot Mollat senior researcher at the U.K. chapter of the anti-corruption group Transparency International.
“It will put journalists and civil society actors at serious risk of retaliation and legal intimidation, which in turn will have a chilling effect on any public interest reporting,” she told OCCRP.
Some in the legal industry have defended the new framework as a necessary compromise.
Ogier Global Law Firm, which advises clients on BVI law, explained in a briefing that the update “represents a significant shift in corporate transparency, evolving from a system once reserved strictly for law enforcement into a more balanced model that aligns with modern international standards.”
Noting that the law aims to protect individual privacy, the firm added: ”This means transparency will only be used where necessary.”
To gain access, an applicant must pay a $75 fee and show credible evidence that their inquiry serves the public interest, such as preventing financial crime. The government will only disclose information for individuals holding at least a 25 percent stake in the business. The applicant can then see the owner’s full legal name, nationality, birth month and year, and specific level of control.
The system includes what Ogier described as “robust check and balances to protect individuals from unnecessary exposure.”
Once a company is notified of a data request, it has five business days to formally object. That can trigger an appeals process that freezes the release of data, according to the new regulations enacted by authorities in BVI, which is a self-governing British Overseas Territory.
Companies can also apply for advance privacy exemptions if disclosure would expose owners to serious risks like kidnapping, extortion, or violence.
Advocacy groups say the new regulations allow too much leeway for companies to continue to hide information from the public.
“Companies registered in these Overseas Territories have been used to hide billions of pounds from corruption and embezzlement, avoid sanctions, or launder money linked to drugs, human trafficking and illegal deforestation,” said Mollat of Transparency International.
“Genuine beneficial ownership disclosure should empower investigators to detect these suspicious activities, not create bureaucratic barriers that protect those with something to hide or tips them off so they can move their assets,” she added.
While transparency advocates view this warning window as a dangerous loophole, BVI Financial Services Commission documents reveal the massive offshore industry actually fought for an even longer 10 to 21-day objection period, citing widespread concerns over media access.
