British Virgin Islands

Islamic finance continues to grow in the British Virgin Islands

The British Virgin Islands remains the most popular international financial centre for incorporating companies due to its tax neutrality, political stability and flexible legal system based on English common law. It is a ready-made platform for the needs of the Islamic finance market. As the Islamic finance market grows and matures, international financial centres such as the British Virgin Islands are being used to facilitate the structuring of Islamic finance products and transactions such and the incorporation of investment funds and corporate structures. There is likely to be an increase in Islamic asset managers using the BVI. In addition, there will likely be a continual increase in Islamic financial institutions and investors using BVI companies in Islamic finance structures such as musharakah and murabaha.

British Virgin Islands: The Use Of Offshore SPVs In Shariah Compliant Transactions Post-FATCA

In recent years, international financial centers (IFCs) such as the British Virgin Islands (BVI) and the Cayman Islands (Cayman) have faced unprecedented political and regulatory pressure from governments and international organizations to open up and become more transparent in their business practices. The impression is that these jurisdictions are secret tax havens. However, IFCs are more compliant with international regulatory requirements than they are portrayed to be. The benefits of using an entity incorporated in an IFC are such that they will remain vital components of international structures, even in the face of mounting pressure from onshore governments.

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