No Virtual Diplomacy for Financial Services
Junior Minister for Financial Services Lorna Smith defended government travel spending during the 2026 budget debate, saying face-to-face engagement is essential to protecting the BVI’s financial services industry. Smith highlighted regulatory gains, including progress on all 40 FATF recommendations, and defended a $3 million travel allocation used to support overseas trade missions through BVI Finance.
Junior Minister for Financial Services Lorna Smith has pushed back against criticism of government travel spending, telling the House of Assembly that in-person diplomacy is vital to safeguarding the British Virgin Islands’ financial services sector. Speaking during the 2026 budget debate, Smith said financial services remains the backbone of the territory’s economy and warned against suggestions that international advocacy could be conducted virtually. “We can’t travel to Asia or Latin America by Zoom,” she told legislators, noting government investments in regulatory improvements and global outreach.
Smith defended the $3 million allocated for travel, saying the funds were used through BVI Finance to support trade and financial services missions across Asia, Latin America, Europe and the United Kingdom. She said those missions laid the groundwork for deeper engagement in 2026, including stronger representation in Europe and enhanced advocacy in markets where policy decisions affecting the territory are made. “I do not travel for fun,” Smith said. “I much prefer to be home, but this work is necessary if we are serious about safeguarding the future of our financial services industry.” Her remarks responded to critics who questioned whether the government could rely on virtual meetings and cut travel costs.
As part of her defence, Smith pointed to significant regulatory gains, including the territory’s progress with the Financial Action Task Force (FATF). She said the Virgin Islands has achieved a compliant or largely compliant rating on all 40 FATF recommendations and is continuing work to meet remaining requirements within the agreed timeline.
That progress, she argued, reflects the investments made in the last fiscal year and is critical to maintaining market access and the jurisdiction’s international reputation. Looking ahead, Smith announced plans to properly staff a dedicated financial services directorate in 2026 and to complete a long-term strategy for the sector, a plan the Premier referenced in the budget presentation.
Those measures, she said, will strengthen local oversight and ensure the territory can capitalise on the overseas engagement already undertaken. For BVI residents, the debate highlights the trade-offs between fiscal scrutiny and the industry-facing work that ministers say is required to protect jobs, government revenue and the territory’s position in global financial markets.
The House of Assembly will continue to examine budget allocations as the government finalises the 2026 fiscal plan.
Primary source: BVI News