Regulatory Blog

On 28 October 2024, the British Virgin Islands Financial Services Commission and Financial Investigation Agency jointly released new guidance to help financial institutions and designated non-financial businesses and professions manage risks associated with third-party introducers. This guidance is aimed at strengthening compliance with anti-money laundering regulations and related local legislation by offering a structured, risk-based approach.

The Financial Services Commission Act 2001 (the FSC Act) is the umbrella to the financial services legislation in the BVI. The FSC Act has recently been amended by the Financial Services Commission (Amendment) Act 2024 (the Amendment). The Amendment was assented by the Governor of the BVI on 29 October 2024 and Gazetted on 7 November 2024. The Amendment is not yet in force and will come into force on such a date as the Minster may by Notice publish in the Gazette.

On 6 November 2024, the Governor of the Virgin Islands issued a Notice under the Virgin Islands Sanctions Regulations, empowering certain officials and entities to manage and enforce sanctions.

On 15 October 2024, the Governor of the Virgin Islands issued General Licence No. 7 2024 (maintenance of economic resources), replacing the previous General Licence No. 4 2023. This new licence, valid for two years until 14 October 2026, allows Registered Agents and Corporate Services Providers to manage specific payments on behalf of designated individuals or companies, subject to certain limits.

The Virgin Islands introduced updates to its Anti-Money Laundering (AML) and Terrorist Financing regulatory framework through the Anti-Money Laundering (Amendment) Regulations, 2024 and the Anti-Money Laundering and Terrorist Financing (Amendment) Code of Practice, 2024.

The BVI government introduced an important update to its Securities and Investment Business Act under the Securities and Investment Business (Amendment of Schedule 1) Order, 2024. This amendment was officially gazetted on 5 September 2024.

The British Virgin Islands is proposing to introduce several new amendments in 2024 to strengthen its legal and regulatory framework across various sectors, including banking, insurance, trust management, and corporate services. These changes are aimed at enhancing transparency, compliance, and safeguarding the financial system from criminal activity. Here is an overview of some of the key bills and their impact.

The BVI Financial Services Commission published Industry Circular 24 of 2024 on Financial Action Task Force National Risk Assessment Guidance. The FATF is revising its guidance on National Risk Assessments for money laundering. This update aims to make the NRA guidance more effective, comprehensive, and useful for all stakeholders, including the private sector and civil society.

The Financial Action Task Force released public statements highlighting jurisdictions with deficiencies in their anti-money laundering and counter-financing of terrorism regimes. In response, the BVI Financial Services Commission issued Industry Circular 26 of 2024, advising compliance with these updates.