Beautiful Virgin Islands

Tuesday, Jun 03, 2025

Feature image

British Virgin Islands retains status as leading financial centre

Having expanded its offer of increasingly sophisticated financial products, the British Virgin Islands (BVI) is now a leading jurisdiction for company formations, registration of investment funds and structured finance issuers.

Over the last decade, the BVI has established itself as a major international financial centre. In doing so it has increasingly played an integral role in the global economy as a key facilitator with BVI incorporated companies, frequently used for cross border investment and joint ventures.

Much of this success rests on the BVI’s social and political stability, as well as important incentives such as tax neutrality, an agile corporate framework and low administrative costs. All of these factors come together to provide businesses with the most optimal environment for growth. Nevertheless, it is arguably the BVI’s track record of compliance with international standards and the strong reputation of its financial services that truly elevates the jurisdiction above other competitors.

Over the years the BVI has carefully protected and cultivated this reputation; enhancing its own regulatory measures while actively engaging in open dialogue and collaboration with international standard-setting bodies to bolster its regime. In many ways, regulations are a moving target and ever-evolving in response to new risks or emerging products such as cryptocurrencies and initial coin offerings. As a result, the landscape is getting more complex, but in the face of shifting global regulations, the BVI has retained its agility and adaptability, keeping track of changes and ensuring compliance.

This innate agility has stood the BVI in good stead over the years and has consistently helped the jurisdiction to bounce-back from severe disruptions, like the annual hurricane season or the global pandemic. The centre’s role in high-profile and high-value transactions continued to be strong despite the impact of COVID-19.

Throughout 2020, the BVI’s financial services firms were involved in a number of significant deals with firms having acted on over $5bn of global transactions, from Initial Public Offerings (IPOs) and Bond issuances to complex debt restructurings:

Large takeover

For example, BVI law firm Conyers successfully advised its long-standing client AquaVenture Holdings Limited (NYSE: WAAS), a leading provider of sustainable Water-as-a-Service® solutions listed on the New York Stock Exchange, on its $1.1bn acquisition by Culligan, a global consumer water services company. The deal was one of the largest takeovers of a publicly-listed BVI company by transaction value. This merger was made all the more remarkable given it was carried out as the BVI underwent 24/7 curfew in a bid to quell COVID-19 – a true testament to the efficiency of the BVI Registry of Corporate Affairs and all those involved.

SPACs and IPOs

While Ogier, another firm based in the BVI, was involved in some notable IPO work, including advising Kismet Acquisition One Corp on its $250m placement, which was one of the highest valued BVI Special Purpose Acquisition Companies (SPAC) IPOs in the last five years. Ogier also acted as BVI counsel on the $138m NASDAQ IPO of East Stone Acquisition Corp., which closed February 24, 2020. East Stone, a Special Purpose Acquisition Company, intends to focus on potential businesses combination targets operating in the fintech sector in the North America and Asia-Pacific regions.

Additional capital

Local BVI firm Harneys was active on a number of capital markets deals, including a ground-breaking Brazilian IPO with Harneys acting as BVI counsel to Aura Minerals in respect of its IPO on the Brazilian Stock Exchange. The proceeds raised R$790.1m, generating additional capital for the multi-national mining company that owns and operates gold and copper mines in Honduras, Brazil and Mexico. At the end of the year, Harneys acted as BVI counsel on the listing of C&D Property Management Group, a BVI incorporated company providing property development, real estate management and investment services.

Exchangeable bonds

The BVI’s close links to Asia continued throughout the year. Harneys represented CP Foods Capital Limited on its $275m bond issuance and listing on the Singapore Stock Exchange. CP Foods Capital Limited is a newly incorporated British Virgin Islands subsidiary of Thai-listed Charoen Pokphand Foods Public Company Limited. Harneys delivered BVI advice on the issuance of exchangeable bonds due 2025 exchangeable into shares in Charoen Pokphand Foods Public Company Limited. The Charoen Pokphand Group is one of the world’s largest conglomerates, headquartered in Thailand and with eight business lines covering 13 business groups, as well as investments in 21 different countries and an estimated $63bn annual revenue.

These are just some examples of leading, cross-border deals that illustrate the expertise and nature of the BVI’s financial services sector. For many international businesses, the BVI is a natural choice owing to its reputation as a business-friendly environment with a mature common law framework and expert legal and professional services. Nevertheless, perhaps the biggest driver of the BVI’s popularity is its compliance with international standards and having a strong regulatory regime.

The BVI has a long history of engaging with international standard-setting organisations, including the Financial Action Task Force (FATF), Egmont Group and the Organisation for Economic Co-operation and Development (OECD), and cooperating on matters such as beneficial ownership. Though standards on this issue currently vary, the BVI has sought to enhance its existing regime and passed the Beneficial Ownership Secure Search System Act in 2017. This requires companies to identify and provide details of the ultimate beneficial owners which is then held on a secure and encrypted database accessible to the BVI’s autonomous law enforcement agency the Financial Investigation Agency (FIA).

Today, BVI FIA shares information with more than 200 countries around the world and most recently it played a significant role in helping the UK’s National Crime Agency to successfully secure the UK’s first Unexplained Wealth Order (UWO) in 2018.

New financial products

Another way the BVI is investing in its regulatory regime is by encouraging innovation in the space. In August last year it launched its Fintech Regulatory Sandbox for fintech businesses to conduct live-testing, identify areas for improvement and assess whether a new financial product or service complies with legal and regulatory requirements. As well as being an effective light-touch regulatory regime, such initiatives are helping to drive innovation, and contributing towards the development of a strong and entrepreneurial talent pool.

By most measures, 2020 was a transformative year, a period in which the global economy was brought to a near standstill by the COVID-19 pandemic. Yet in a challenging year and in a fiercely competitive global market, the British Virgin Islands has continued to thrive. BVI firms and representatives across the BVI financial services industry have demonstrated incredible agility and resourcefulness. These attributes are unique to the BVI and will help ensure it continues to be a competitive and globally recognised financial centre.

Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
China Accuses US of Violating Trade Truce
Panama Port Owner Balances US-China Pressures
France Implements Nationwide Outdoor Smoking Ban to Protect Children
German Chancellor Merz Keeps Putin Guessing on Missile Strategy
Mandelson Criticizes UK's 'Fetish' for Abandoning EU Regulations
British Fishing Boat Owner Fined €30,000 by French Authorities
Dutch government falls as far-right leader Wilders quits coalition
Harvard Urges US to Unfreeze Funds for Public Health Research
Businessman Mauled by Lion at Luxury Namibian Lodge
Researchers Consider New Destinations Beyond the U.S.
53-Year-Old Doctor Claims Biological Age of 23
Trump Struggles to Secure Trade Deals With China and Europe
Russia to Return 6,000 Corpses Under Ukraine Prisoner Swap Deal
Microsoft Lays Off Hundreds More Amid Restructuring
Harvey Weinstein’s Publicist Embraces Notoriety
Macron and Meloni Seek Unity Despite Tensions
Trump Administration Accused of Obstructing Deportation Cases
Newark Mayor Sues Over Arrest at Immigration Facility
Center-Left Candidate Projected to Win South Korean Presidency
Trump’s Tariffs Predicted to Stall Global Economic Growth
South Korea’s President-Elect Expected to Take Softer Line on Trump and North Korea
Trump’s China Strategy Remains a Geopolitical Puzzle
Ukraine Executes Long-Range Drone Strikes on Russian Airbases
Conservative Karol Nawrocki wins Poland’s presidential election
Study Identifies Potential Radicalization Risk Among Over One Million Muslims in Germany
Good news: Annalena Baerbock Elected President of the UN General Assembly
Apple Appeals EU Law Over User Data Sharing Requirements
South Africa: "First Black Bank" Collapses after Being Looted by Owners
Poland will now withdraw from the EU migration pact after pro-Trump nationalist wins Election
"That's Disgusting, Don’t Say It Again": The Trump Joke That Made the President Boil
Trump Cancels NASA Nominee Over Democratic Donations
Paris Saint-Germain's Greatest Triumph Is Football’s Lowest Point
OnlyFans for Sale: From Lockdown Lifeline to Eight-Billion-Dollar Empire
Mayor’s Security Officer Implicated | Shocking New Details Emerge in NYC Kidnapping Case
Hegseth Warns of Potential Chinese Military Action Against Taiwan
OPEC+ Agrees to Increase Oil Output for Third Consecutive Month
Jamie Dimon Warns U.S. Bond Market Faces Pressure from Rising Debt
Turkey Detains Istanbul Officials Amid Anti-Corruption Crackdown
Taylor Swift Gains Ownership of Her First Six Albums
Bangkok Ranked World's Top City for Remote Work in 2025
Satirical Sketch Sparks Political Spouse Feud in South Korea
Indonesia Quarry Collapse Leaves Multiple Dead and Missing
South Korean Election Video Pulled Amid Misogyny Outcry
Asian Economies Shift Away from US Dollar Amid Trade Tensions
Netflix Investigates Allegations of On-Set Mistreatment in K-Drama Production
US Defence Chief Reaffirms Strong Ties with Singapore Amid Regional Tensions
Vietnam Faces Strategic Dilemma Over China's Mekong River Projects
Malaysia's First AI Preacher Sparks Debate on Islamic Principles
White House Press Secretary Criticizes Harvard Funding, Advocates for Vocational Training
France to Implement Nationwide Smoking Ban in Outdoor Spaces Frequented by Children
×