The Banks and Trust Companies (Amendment) Bill 2024 introduces two significant updates to the existing Banks and Trust Companies Act 1990:

• Expanded definition of trust business: The definition of "trust business" is broadened to include activities tied to legal arrangements beyond traditional trusts and settlements. This ensures corporate service providers are compliant with the legal obligations of the Territory.
• Deposit insurance requirement: Any applicant for a banking license must now submit a written commitment to the Financial Services Commission (FSC), agreeing to provide a copy of their deposit insurance policy within six months of receiving the license. This guarantees that all banks, including new ones, are part of the Territory’s deposit insurance framework.

The Bill can be found here.

The Insurance (Amendment) Bill 2024 focusses on foreign insurers, enhancing oversight and compliance with international standards:

• Ownership changes approval: Foreign insurers are now required to obtain written approval from the FSC before making any changes to their controlling interest. This aims to prevent criminals from acquiring stakes in insurers.
• Fit and proper standards: The FSC will only approve new owners who meet the required “fit and proper” criteria, ensuring that suitable individuals or entities hold controlling interests.
• Notification requirements: Changes in non-controlling interests must be reported to the FSC within 14 days. These provisions align with Financial Action Task Force recommendations, improving the Virgin Islands’ financial regulatory system.

The Bill can be found here.

The Proliferation Financing (Prohibition) (Amendment) Bill, 2024 strengthens the BVI’s efforts against the financing of weapons proliferation:

• Strict liability offence: Dealing with designated persons or entities under sections 15 and 16 is now considered a strict liability offence, meaning intent no longer needs to be proven for prosecution.
• Mandatory reporting of all transactions: The previous reporting threshold of US$10,000 is removed. Now, all transactions involving designated individuals or entities, regardless of the amount, must be reported to the Financial Investigation Agency (FIA).
• FIA guidelines: The FIA is empowered to issue guidelines to help individuals and businesses comply with reporting and asset-freezing obligations. These changes address key recommendations from the 2024 Mutual Evaluation Report, bolstering the BVI’s ability to prevent illegal financing.

The Bill can be found here.

The 2024 legislative updates in the BVI signify an important step toward improving financial transparency, regulatory compliance, and the fight against financial crimes such as money laundering and proliferation financing. These amendments not only align the BVI with international standards but also strengthen its financial system, ensuring its continued success as a global financial hub. Businesses and financial service providers operating in or from within the BVI should take note of these proposed changes and ensure compliance with the new requirements once the legislation becomes law and comes into force.