4 April 2002
Source: http://usinfo.state.gov/cgi-bin/washfile/display.pl?p=/products/washfile/latest&f=02040303.wlt&t=/products/washfile/newsitem.shtml


US Department of State
International Information Programs

Washington File
_________________________________

03 April 2002

U.S., U.K. Sign British Virgin Islands Tax Information Pact

(Aim to thwart terrorists, money launderers, tax evaders) (770)

In remarks at the signing of a U.S.-UK tax information exchange
agreement with respect to the British Virgin Islands April 3, Treasury
Secretary Paul O'Neill said he hopes the cooperation the agreement
embodies "will serve as an example to other financial centers in the
region and around the world."

The British Virgin Islands "is one of the largest financial centers in
the Caribbean," O'Neill noted.

The funds associated with terrorism, money laundering and tax evasion
"move almost effortlessly across national boundaries," he said. "As a
result, nations that are committed to thwarting these activities must
be prepared to work together.

"With today's signing of a tax information exchange agreement, the
British Virgin Islands is once again demonstrating its commitment to
cooperating with the United States on law enforcement matters."

Signing the agreement in addition to O'Neill were United Kingdom
Ambassador Sir Christopher Meyer and British Virgin Island Governor
Frank Savage.

Following is the text of a Treasury Department press release on the
ceremony that includes O'Neill's remarks:

(begin text)

U.S. Department of the Treasury
Office of Public Affairs
Washington, D.C.
April 3, 2002 

TREASURY SECRETARY O'NEILL SIGNING CEREMONY STATEMENT

UNITED STATES AND UNITED KINGDOM SIGN AGREEMENT TO EXCHANGE TAX
INFORMATION WITH RESPECT TO THE BRITISH VIRGIN ISLANDS

Today Treasury Secretary Paul O'Neill signed a new agreement with the
United Kingdom, including the British Virgin Islands, that will allow
for exchange of information on tax matters between the United States
and the British Virgin Islands. The agreement was signed by Treasury
Secretary Paul O'Neill, United Kingdom Ambassador Sir Christopher
Meyer and British Virgin Island Governor Frank Savage.

At the signing ceremony, Treasury Secretary Paul O'Neill delivered the
following remarks:

I would like to thank you all for being here today and welcome our
friends from the United Kingdom and the British Virgin Islands,
especially the Governor of the British Virgin Islands, Mr. Frank
Savage, and the British Ambassador to the United States, Sir
Christopher Meyer. I also want to extend a very warm welcome to Mr.
Robert Mathavious and Mr. Michael Riegels of the Financial Services
Commission of the British Virgin Islands.

The British Virgin Islands is one of the largest financial centers in
the Caribbean and is widely recognized as a leader in its region. The
United States and the British Virgin Islands already have a close and
cooperative relationship on law enforcement matters under our mutual
legal assistance treaty. In these troubled times, cooperation between
countries is more important than ever before. As we all know, the
funds associated with illicit activities, including terrorism, money
laundering, and tax evasion, now move almost effortlessly across
national boundaries. As a result, nations that are committed to
thwarting these activities must be prepared to work together.

With today's signing of a tax information exchange agreement, the
British Virgin Islands is once again demonstrating its commitment to
cooperating with the United States on law enforcement matters.

As I have said on numerous occasions, we have an obligation to enforce
our tax laws because failing to do so undermines the confidence of
honest taxpayers in the fairness of our tax system. One of the keys to
enforcement of our tax laws is access to needed information.

Several months ago I made a public commitment, in Congressional
testimony, to expanding our network of tax information exchange
relationships. We have already made significant progress in that
regard, and today's signing is another major step forward.

I would like to take this opportunity to thank the Government of the
British Virgin Islands for coming here today and demonstrating its
leadership, its commitment to upholding international standards, and
its insistence that its financial institutions are not to be used to
further illicit activities of any kind.

I hope that the British Virgin Islands' cooperation with the United
States in developing this tax information exchange agreement will
serve as an example to other financial centers in the region and
around the world. I look forward to convening here again in the coming
weeks to announce additional agreements with other countries.

We have already signed tax information exchange agreements with the
Cayman Islands, The Bahamas, and Antigua and Barbuda. The agreements
signed in the past year are the first tax information exchange
agreements that have been signed since 1992. We are gratified with the
progress that has been made with the OECD project-more than 20
countries have committed to entering into agreements providing for
transparency and tax information exchange.

[The text of the agreement is available at:
http://www.treas.gov/press/releases/kingdom.pdf]

(end text)

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Department of State. Web site: http://usinfo.state.gov)