BVI’s Grey List Status

BVI’s Grey List Status: A Measured Step in a Stronger Regulatory Journey

In June 2025, the British Virgin Islands (BVI) was placed on the Financial Action Task Force’s (FATF) list of jurisdictions under increased monitoring, commonly referred to as the “Grey List.” While headlines may stir concern, it’s important to understand what this designation truly means and, more importantly, what it doesn’t.

What the Grey List Means (and Doesn’t)

The FATF’s Grey List is not a blacklist. It does not impose sanctions, penalties, or restrictions on doing business with the BVI. Rather, it signals that the jurisdiction is actively working with the FATF and its regional counterpart, the Caribbean FATF, to strengthen its anti-money laundering (AML), counter-terrorist financing (CTF), and counter-proliferation financing (CPF) frameworks.

In fact, the BVI has already demonstrated substantial progress. It is rated compliant or largely compliant with 36 out of the FATF’s 40 Recommendations a strong showing by global standards. The remaining areas are being addressed through a clear and time-bound action plan, with high-level political commitment and cooperation from the BVI government.

Why the BVI Remains a Premier Offshore Hub

Despite its Grey List status, the BVI continues to offer a world-class platform for international business. Here’s why:

  • Robust Legal Infrastructure: The BVI’s legal system, rooted in English common law, is trusted by investors, fund managers, and multinational corporations alike.
  • Business-Friendly Environment: With no corporate income tax, capital gains tax, or inheritance tax, the BVI remains one of the most efficient jurisdictions for structuring cross-border investments.
  • Global Recognition: The BVI Business Companies Act is a gold standard in offshore legislation, and the jurisdiction is home to more than 370,000 active companies.
  • Commitment to Reform: The BVI’s inclusion on the Grey List reflects not failure, but transparency and cooperation. The jurisdiction is proactively enhancing its regulatory regime to meet evolving global standards.

Looking Ahead

The BVI’s financial services sector has weathered global scrutiny before and emerged stronger. This latest chapter is no different. The Grey List designation is a checkpoint, not a red flag. It underscores the BVI’s willingness to engage, adapt, and lead in the offshore space.

For investors, legal professionals, and international financial service providers, the message is clear: the BVI remains open for business, committed to compliance, and firmly positioned as a premier offshore financial center.

The jurisdiction's commitment to transparency, adaptability, and world-class service continues to anchor its status as a global leader in the offshore financial industry.

Written by Tamara Maduro (Joining soon)
Group Partner, Hatstone BVI