VI Lawmakers Approve 3% Fee on Wire Transfers, Claiming Millions Leave Territory Illegally

The bill was unanimously supported lawmakers. Blyden contends that the tax will help fight illegal remittances, while Fonseca criticizes the outflow of funds from contractors, stating that the Virgin Islands is “supporting the whole Caribbean.

Lawmakers are hopeful that the ascension of Bill 35-0376 into law will help bridge the Government of the Virgin Islands’ massive revenue gap. That’s because the proposed legislation will impose a 3% fee on each international money transfer made from the USVI. Expected to generate approximately $21 million annually, the funds will be deposited into the Money Laundering and Electronic Transaction Enforcement Fund - also established through Bill 35-0376.‌

“As part of our budget process it is important for us to find new revenues,” said Senator Frett-Gregory on Wednesday, as she announced the intention to introduce the fee. During her tenure in office the lawmaker, presiding over her final budget cycle as chair of the powerful Senate Committee on Budget, Appropriations and Finance, has made a habit of asking her colleagues to identify new revenue generators, particularly when lawmakers seek to introduce legislation that requires funding outside of the approved annual budget.‌