With global markets volatile, cyber threats rising and geopolitical divides deepening, BVI Finance CEO Elise Donovan addressed the audience at the 1841 Foundation Tax Summit in Buenos Aires, speaking on the critical topic: “Increased Pressure on International Financial Centres: What’s New and What’s Next?” In a wide-ranging keynote, she described how international financial centres now face a new era of pressure, challenged the myth of a “level playing field,” and explained why investors and businesses are beginning a clear shift toward jurisdictions that offer genuine quality and long-term reliability.
Elise explained that the pressures facing international financial centres (IFCs) have changed significantly in recent years. Instead of dealing with a single regulatory issue at a time, jurisdictions must now contend with an overlapping series of global expectations, from transparency and anti-money laundering standards to rapidly evolving sanctions regimes and cybersecurity risks. Maintaining access to global financial markets, she noted, now requires continuous compliance, constant monitoring and the capacity to manage sophisticated threats that move fluidly across borders.
She pointed out that as regulatory frameworks have expanded, the nature of financial crime has also become more complex. Criminal networks now frequently operate through multi-jurisdictional structures, cyber-enabled schemes and digital assets. As a result, an IFC’s credibility no longer rests solely on its legal frameworks or corporate services, but on its ability to detect, prevent and respond to these threats in real time.
Elise also emphasised that cybersecurity has quietly become one of the most significant systemic risks facing global finance. With more jurisdictions relying on digital registries, beneficial ownership systems and e-KYC tools, a single breach could undermine confidence and cause lasting reputational harm. More than ever, she said, cyber resilience is being treated as a core obligation for maintaining financial stability.
Turning to geopolitics, Elise described a world that has shifted from broad globalisation to the rise of competing economic blocs, trade barriers and strategic policy-making. IFCs sit at the centre of these tensions and must remain open enough to support cross-border investment while also aligning with major international partners. This delicate balance, she noted, is becoming increasingly difficult to manage.
She addressed another issue that has shaped public perception: the narrative surrounding IFCs. High-profile leaks and media campaigns in recent years have portrayed offshore centres as synonymous with wrongdoing, even though many jurisdictions have been among the strongest supporters of global transparency standards. She observed that political debates often overlook the substantial progress compliant IFCs have made, and that reputational pressure disproportionately affects smaller jurisdictions—even those with among the highest levels of compliance anywhere in the world.
Reflecting on the longstanding call for a “level playing field,” Elise questioned whether this aspiration has ever been fully realised. Smaller IFCs, she said, have often implemented international standards more quickly than larger economies, yet continue to face the most intense scrutiny. She warned that unequal expectations risk undermining the credibility of global standard-setting itself, while potentially pushing capital and sometimes illicit actors toward less transparent jurisdictions.
Looking ahead, Elise argued that global finance is already moving toward a “flight to quality.” In her view, the jurisdictions that will thrive are those offering a blend of robust regulation, practical efficiency, strong legal foundations, reliable courts, cyber resilience and thoughtful innovation. She stressed that being competitive cannot mean relaxing standards, just as strong compliance cannot create unnecessary friction for legitimate investment. Jurisdictions that can strike this balance, protecting privacy while ensuring legitimate access, adopting new technologies while maintaining institutional stability, and staying open while withstanding geopolitical shocks, will shape the future of international finance.
Citing the British Virgin Islands as an example, Elise noted that its success has been built over four decades through trusted courts, respected regulatory institutions, experienced professionals, and a corporate and legal framework widely used around the world. “An IFC is not a product,” she said. “It is an ecosystem—one that must be built, tested and refined over time.”
Elise concluded by urging advisers and policymakers to think beyond immediate regulatory trends and instead consider which jurisdictions will remain credible after the next global challenge, whether that is a new FATF evaluation, a major sanctions shift or an unexpected cyber incident. “We are moving toward a world where there is no longer ‘offshore versus onshore,’” she said. “There will only be jurisdictions that are high-quality, well-regulated, innovative and trusted, and those that are not.”
About BVI Finance
BVI Finance is responsible for protecting and promoting the BVI’s financial services industry. The BVI is renowned as a leading international business and finance centre, offering a robust legal framework, a stable and business-friendly environment, and a strong reputation for regulatory compliance. With its strategic expertise in wealth management, corporate services, trusts, fund administration and digital assets, the BVI continues to attract global businesses, investors and financial professionals to use its products and services.
For further information please contact:
Shamahl A. Smith
Communications and Research Officer
ssmith@bvifinance.vg |Tel: 284-852-1957