Prime Minister Andrew Fahie announced that the government has raised more than $ 2 million from its legislative initiative to tax people who send money out of territory through money transfer services such as MoneyGram and Western Union.
The law requires that a seven percent tax be levied on all funds leaving BVI through money transfer agencies.
One year has passed since that – the Money and Services (Amendment) Act, 2020 went into effect, Fahie said the government raised $ 2,314,958.21.
The Prime Minister, who is also Minister of Finance, reiterated that funds raised for all transactions are intended for various national development initiatives in five categories: new land and owners; home for the elderly and other initiatives for the elderly; scholarships in various fields; the fishing industry; and the agricultural industry.
He said each of the five categories would receive 20 percent of all taxed funds. This means that each of these categories has received $ 462,991.64 so far.
Non-compliant agencies face penalties of up to $ 5,000
The amended law stipulates that the seven percent tax collected must be paid to the Financial Services Commission (FSC) each month, unless the Commission directs otherwise.
And if an agency fails to collect the seven percent tax or submit revenues to FSC on time, it may be subject to what is described as an “administrative penalty” by the Commission.
According to the Financial Services (Administrative Sanctions) Regulations, the sanction that would be imposed is punishable by a fine of up to $ 5,000.
The Administrative Sanctions Regulation, however, said the Commission can take “any other enforcement action” against non-compliant money transfer agencies, except to revoke an agency’s license to operate as a additional sanction for the same offense.
The latest amendment to the law now allows an administrative fee of $ 10,000 to be deducted by the FSC for each quarter before the fund is turned over to central government.
This amendment was passed in the House of Assembly on Tuesday and is titled Money Finance and Services (Amendment) Act 2021.
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