BVI boasts FATF perfect scores, but Lorna Smith urges regulators to "go faster"

The British Virgin Islands's Digital Asset Balancing

The British Virgin Islands is cautiously walking a tightrope in the field of digital assets. The tension stems from two competing goals: proving to global regulators that the region's regulations are impeccable, while maintaining the speed of licensing and approvals to avoid losing business elsewhere.

At a joint session of the Fintech Maritime Conference, H.E. Dr. Natalio Whitley, Prime Minister of the region, and H.E. Lorna Smith, Minister of Financial Services, talked about how they had responded to this tension through collaboration, the establishment of dedicated ministries, a clean compliance record and institutional maturity.

"This is a very dynamic industry and I think it requires multiple stakeholders to work together," Dr. Whitley said.

The Prime Minister's Structure

When asked whether he would take a hands-on approach to the fintech field or manage through appointment, Dr. Whitley refused to make a choice.

"All of the above," he said.

For decades, the region's financial services system has been run by a legendary official. "That was Robert Masavius," Dr. Whitley said. Masavius has held financial services positions in The British Virgin Islands for many years, while also holding other roles in government. The decision made jointly by the Prime Minister and Smith in 2023 was to transform this "one-man show" into a full ministry.

"It is extremely important to have a ministry to provide policy support, formulate policies, and coordinate stakeholders," he said. "Of course, appoint a financial services secretary-the first financial services secretary, The Honourable Lorna Smith, who has a long history in industry and government."

Dr Whitley also serves as Chairman of the National Anti-Money Laundering Coordination Committee, which is the main body responsible for detecting and preventing financial crime in The British Virgin Islands. "We're working hard to make sure we get off the gray list, and we're doing a great job," Whitley said. "At present, we have met all 40 indicators in compliance with FATF standards." The FATF (Financial Action Task Force) is an international organization that sets global standards for combating financial crimes. In October 2025, the Caribbean Financial Action Task Force confirmed that The British Virgin Islands received a "compliant" or "basic compliant" rating on all 40 FATF recommendations, compared with 36 at the beginning of 2024.

Dr. Whitley also explained that ensuring private companies have a say is crucial to the success of the region's industry. "We need to have a mentality not to confront the industry, but to work with the industry, even if we face challenges and difficulties, we need to work with the industry to solve these issues and act in a way that is best for the overall interests of the Virgin Islands," he said.

Accelerate licensing and approval

Smith also started with the advantages Whitley emphasized. "We have very comprehensive regulations, legal certainty, and the clarity needed. But our regulators are very strong to make sure people's money is safe,"Smith said. "If someone brings something that is ambiguous-unless it is clear, regulators will not take over."

But being strong also means waiting, and she immediately pointed out this. "One thing I would like to see-and I told him directly, so it's no secret-is to go faster," she said. "You don't want to rush into the wrong decision, but at the same time, you don't want to lose business." As countries around the world begin to take the digital asset space seriously at the policy level, different jurisdictions will compete for capital, and the long and cumbersome regulatory process may become the main reason why companies consider setting up elsewhere.

It is this strictness that has allowed the region to achieve compliance on all 40 indicators, but it has also become a bottleneck that its Financial Services Minister wants to relax. The British Virgin Islands is betting that it can become a jurisdiction that is both invulnerable and efficient. Smith publicly stated this obscure question on stage, indicating that the second half of the work was under construction. This is one of the most important jurisdictions to set the tone when global digital asset policy is being developed.