Regulatory Blog

On 20 May 2026, the Russia Regulations 2026 came into force, significantly expanding the UK's sanctions regime against Russia. Made by the Secretary of State under the Sanctions and Anti-Money Laundering Act 2018, these Regulations amend the Russia Regulations 2019 and introduce a range of new trade and shipping prohibitions.

On 26 May 2026, the UK Foreign, Commonwealth & Development Office announced 18 new designations under the Russia Regulations 2019, targeting cryptocurrency exchanges, financial intermediaries, and key individuals linked to Russia's sanctions evasion infrastructure.

The BVI recently enacted the Mutual Legal Assistance Act 2026. This vital piece of legislation formally aligns local law with the updated Common Reporting Standard approved by the Organisation for Economic Co-operation and Development in June 2023. The 2026 Amendment was Gazetted on 5 March 2026.

On 16 February, the British Virgin Islands Financial Services Commission published Industry Circular 5 of 2026, highlighting the critical importance of ongoing Customer Due Diligence and transaction monitoring for Financial Institutions and Designated Non-Financial Businesses and Professionals. While initial CDD establishes a foundational understanding of customer profiles and risks, the BVI FSC underscores that ongoing CDD is essential to address changes in customer circumstances or activities.

The British Virgin Islands Financial Services Commission successfully concluded its 2026 "Meet the Regulator" Forum series, fostering robust dialogue and engagement across key global markets. The series began in the BVI on 17 February 2026, with over 200 stakeholders from various financial sectors, including trust services, insurance, and virtual assets.

European Union has issued significant and far-reaching sanctions and restrictive measures on Russia and the Russian Economy. View a table of all the sanctions here.

The Organisation for Economic Co-operation and Development released its 2025 update to the Model Tax Convention on Income and on Capital on 18 November 2025, introducing significant changes that will reshape the international tax landscape. These updates provide critical guidance on the taxation of cross-border remote work and income from natural resource extraction, aiming to offer greater certainty for governments and businesses alike.

On 30 March 2026, the British Virgin Islands Financial Services Commission announced the launch of the Legitimate Interest transaction functionality, effective 1 April 2026. Registered Agents are advised to adhere to the prescribed timelines and requirements for processing requests to inspect the Beneficial Ownership Register.

On 27 April 2026, the British Virgin Islands Financial Services Commission published an update setting out its 2026 Compliance Inspection Programme, a clear signal of where supervisory attention will be focussed from March 2026 to February 2027. The programme explains how the BVI FSC will use inspections to assess risk, test controls, and drive higher standards across the BVI’s financial services sector.

Tokenisation of real-world assets is reshaping global finance and commodities. RWAs are universally valued for their liquidity and are among the most popular reference assets at the moment. For sponsors, legal professionals and investors, structuring these tokens in the right jurisdiction is critical. The British Virgin Islands is an attractive jurisdiction for commodity-backed token projects, offering a sophisticated legal system, flexible corporate vehicles, and proven virtual asset framework.

AI is no longer a future prospect. It is transforming the way financial services operate right now. For businesses in offshore financial centres such as the British Virgin Islands, the Cayman Islands, and Jersey, the opportunities are immense but so are the risks. From algorithmic decision-making and automated compliance tools to AI-driven investment strategies, the technology is advancing faster than the regulatory framework designed to govern it. With no comprehensive AI-specific legislation yet in place across key offshore jurisdictions, firms face a critical question – how do you innovate responsibly while staying on the right side of the law?

On 25 March 2026, the UK published updated guidance under the Iran (Sanctions) Regulations 2023, reinforcing its commitment to addressing human rights violations, deterring hostile activities, and promoting international security.