Introduction to the Bank of Asia Controversy

Staff Report | June 6, 2025

On May 28, 2025, Guavaberry Media Inc., a BVI-based investigative news outlet, published an in-depth exposé detailing serious regulatory, legal, and financial concerns surrounding Bank of Asia (BVI) Limited.

The report, which triggered immediate responses from both government and financial authorities, raises urgent questions about transparency, governance, and the potential misuse of public funds.

Given the bank’s entanglement with prominent public officials and the possible loss of taxpayer money, this story holds clear significance for the public interest—not only in the British Virgin Islands but across the wider financial services sector.

The summary below distills the key revelations for informational and analytical purposes.

Key Findings

Regulators Acted Only After Media Pressure, Breaking Years of Silence
Guavaberry Media’s exposé forced the Virgin Islands Deposit Insurance Corporation (VIDIC) and Financial Services Commission (FSC) to acknowledge serious issues at Bank of Asia after more than two years of silence. The government issued its own statement the following day.
Bank of Asia Was Deeply Entwined with Local Power Figures, Especially Lorna Smith.
The bank’s origins and leadership were closely tied to Lorna Smith OBE, who allegedly received substantial payments and later held ministerial power over banking regulation—raising serious concerns about conflicts of interest and regulatory capture.
Founders Were Engaged in Serious Legal and Financial Trouble
Bank founders Carson Wen and his wife were embroiled in litigation brought by a former business partner. Courts found them liable, froze their assets globally, and ultimately declared them bankrupt. Wen was described by the court as “dishonest.”
Serious Regulatory and Governance Failures Were Allegedly Covered Up
The bank failed to file legally required audited accounts for years. Despite this, regulators allowed it to continue operations. A government deposit of $5 million into the bank—allegedly ordered by Lorna Smith while Acting Premier—may now be unrecoverable.
Despite Collapse, the Bank May Still Hold Valuable Potential
Credible investors had shown interest in acquiring or rescuing the bank, but were turned away for unclear reasons. With new leadership and transparency, the bank could still become a fintech and crypto asset hub—if it is not too late.

Conclusion

This article provides a summary and commentary on key issues reported by Guavaberry Media Inc. (May 28, 2025), under fair dealing provisions for the purposes of news reporting and analysis. For a full account, please refer to the original publication.

Frequently Asked Questions (FAQs)

Q: What is the Bank of Asia controversy about?
A: The controversy surrounds serious regulatory, legal, and financial concerns at Bank of Asia (BVI) Limited, including potential misuse of public funds and conflicts of interest.

Q: Who is Lorna Smith and what is her role in the controversy?
A: Lorna Smith OBE is a public official who allegedly received substantial payments from the bank and later held ministerial power over banking regulation, raising concerns about conflicts of interest and regulatory capture.

Q: What is the current status of the bank?
A: The bank’s future is uncertain, but it may still hold valuable potential as a fintech and crypto asset hub if it can secure new leadership and transparency.