Regulatory Blog

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.

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.

On 10 March 2026, the British Virgin Islands Financial Services Commission shared updates regarding sanctions from two key areas: the United Nations Security Council regarding amendments to its Consolidated Sanctions List and financial sanctions obligations for institutions under its jurisdiction. These updates highlight critical changes and compliance actions required to meet international and local regulatory standards.

The British Virgin Islands Financial Services Commission published details of General Licences No. 12 (2026) and No. 11 (2025), issued under the authority of the Governor. These licences outline specific permissions and conditions for activities related to sanctions compliance, including the supply of Russian oil under price cap regulations and the payment of legal fees for designated persons. Below is a summary of their key provisions:

The BVI Business Companies Act, Revised Edition 2020, stands as a foundational legal framework that governs the incorporation, administration, and operation of business entities within the British Virgin Islands. Enacted initially in 2004 and revised across various years, this comprehensive legislation consolidates prior enactments into a structured regulatory code. It embodies principles of flexibility, efficiency, and compliance, providing businesses with a regulatory environment conducive to global commerce.

The BVI Financing and Money Services Act, revised as of 1 January 2020, serves as a comprehensive regulatory framework governing the financing and money services sector in the Virgin Islands. Enacted initially in 2009 and subsequently amended in 2018, the Act provides the foundation for licensing, regulation, and supervision of entities engaged in financing and money services businesses, ensuring their compliance with both financial and anti-fraud standards. It reflects the jurisdiction’s commitment to fostering a transparent, accountable financial system while protecting consumer interests.

The BVI Insurance Act, as revised on 1 January 2020, establishes a robust framework for the licensing, regulation, and supervision of insurance businesses within the jurisdiction. Designed to ensure financial stability and protect policyholders, the Act addresses various aspects of the insurance sector, including the roles and responsibilities of insurers, insurance managers, intermediaries, and loss adjusters. Guided by principles of prudence and transparency, the legislation is a critical pillar for maintaining trust in the Virgin Islands’ financial services industry.

The BVI Limited Partnership Act, Revised Edition 2020, provides a robust framework for the establishment, regulation, and operations of limited partnerships in the British Virgin Islands. Serving as the foundation of law for these business entities, the LPA addresses essential components such as registration, governance, partner roles, financial records, and the mechanisms of both dissolution and restoration. Originally introduced in 2017 and revised in 2019, the legislation has consistently emphasised structural clarity, operational flexibility, and adherence to regional and international compliance standards.

The BVI Virtual Assets Service Providers Act, 2022 establishes a comprehensive framework for the registration, regulation, and supervision of Virtual Assets Service Providers. VASPA aims to ensure the integrity, security, and compliance of virtual asset transactions while addressing risks such as money laundering, terrorist financing and proliferation financing.

The BVI Banks and Trust Companies Act, revised as of 1 January 2020, continues to serve as a foundational legal instrument governing the licensing, regulation, and supervision of banking and trust operations within the BVI. This comprehensive legislation, known as the “BTCA”, remains pivotal in ensuring the sound management of financial entities, safeguarding stakeholder interests, and sustaining public confidence in the jurisdiction’s financial services sector. With subsequent amendments in 2022, 2023, and 2024, the Act demonstrates its adaptability in addressing emerging regulatory needs and aligning with global best practices.