British Virgin Islands

Monday, Jun 01, 2020

Steady turnout as money transfer agencies reopen for the first time since lockdown and new tax

Steady turnout as money transfer agencies reopen for the first time since lockdown and new tax

With the reopening of money transfer agencies across the British Virgin Islands on Monday, May 11, a considerable amount of residents were seen at popular outlets on the main island of Tortola.

On Fleming Street, a steady line consisting more than 20 persons were seen awaiting services from transfer agency, MoneyGram.

Only a limited number was allowed inside the facility at a time, and BVI News observed that all patrons entering were wearing protective face masks.

Over at the Cutlass Tower, residents were also queued outside of the money transfer establishment, Western Union.


7% tax on all transactions

The reopening of these establishments comes one week after the Financing & Money Services (Amendment) Act became law.

This means that all transactions conducted through these services will be subject to a seven percent tax, which will be deducted by the respective agencies and paid to the Financial Services Commission (FSC) every month unless otherwise specified by the Commission.

Money transfer agencies failing to deduct or pay the collected tax to the FSC on time can face up to $5,000 in fines for not adhering to the new law.

The monies collected from all transactions will be deposited into a fund earmarked for various national development initiatives.

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