The British Virgin Islands is a [[British Overseas Territory (BOT)]] and a major offshore financial center located in the Caribbean. Its economy is primarily based on financial services and tourism, operating as a tax-neutral jurisdiction with significant corporate registration activity. Key economic sectors include offshore financial services (company formations, trusts, and investment vehicles), tourism, and shipping registry services. The territory uses the US dollar as its official currency and maintains a sophisticated regulatory framework for financial services. Despite its small size, BVI has become one of the world's largest offshore financial centers, though faces ongoing challenges with international regulatory scrutiny and the need to maintain compliance with global financial standards.