Bangladesh, April 2 -- The British Virgin Islands has taken a notable step toward opening its long-guarded corporate registry, but the reform is already facing sharp criticism from anti-corruption advocates who argue that critical design flaws could undermine its intended purpose. While authorities present the new framework as a move toward greater transparency and alignment with international standards, critics warn that built-in loopholes may allow illicit actors to evade scrutiny while exposing those seeking accountability to potential retaliation.

For decades, the British Virgin Islands has been synonymous with corporate secrecy. Its offshore financial services sector has attracted companies and individuals seeking low taxes, confide...