The British Virgin Islands has taken a historic step away from its long-standing corporate secrecy, but the new system includes what critics say is a critical flaw that undermines transparency efforts.
In a departure from the past, authorities in the British Virgin Islands can now order company service providers to disclose corporate details after reviewing applications. But the rules require that companies be alerted each time such a request is made, a move that opponents argue effectively warns wrongdoers and exposes the identities of those seeking information, including journalists and activists.
“This setup is fundamentally incompatible with the goals of global transparency,” said Margot Mollat, senior researcher at Transparency International UK. “It creates a real danger of reprisal and legal threats against those working in the public interest, chilling investigative reporting.”
The notification process gives companies five business days to object before details are released, triggering an appeals mechanism that can halt the disclosure entirely. Businesses may also pre-emptively seek privacy exemptions if revealing ownership would expose them to serious threats such as kidnapping or extortion.
Some legal experts defend the framework as a balanced compromise. Ogier Global, a law firm advising on BVI regulations, described the update as “a significant shift” that moves the territory from a law enforcement-only system to one aligned with modern international standards. The firm emphasized that the law safeguards individual privacy and ensures transparency is only applied where justified.
Applicants must pay a $75 fee and provide credible evidence that their request serves the public interest, such as combating financial crime. Information is limited to owners holding at least a 25% stake and includes their full legal name, nationality, birth month and year, and level of control.
Advocacy groups argue the new provisions create too much latitude for concealment. “These territories have been used to hide billions of pounds from corruption, sanctions evasion, and money laundering tied to drugs, trafficking, and environmental crimes,” Mollat added. “Effective beneficial ownership disclosure should help investigators detect suspicious activity, not erect bureaucratic hurdles that protect wrongdoers or tip them off to move their assets.”
Records from the BVI Financial Services Commission show that the offshore industry had pushed for an even longer 10- to 21-day objection period, citing concerns about media access.