Compliance Officer Responsibilities in British Virgin Islands: A Guide

The Financial Services Commission (FSC) of the British Virgin Islands (BVI) has introduced guidelines for corporate entities seeking to perform compliance function services. In this guide, we will outline the eligibility criteria, application process, approval requirements, licensee responsibilities, and penalties associated with performing compliance functions in the BVI.

Eligibility Criteria

To be eligible to perform compliance functions, a corporate entity must:

• Have adequate resources, experience, and personnel with the necessary skills and qualifications
• Demonstrate its ability to provide effective compliance oversight and risk management

Application Process

The application process involves submitting various documents, including:

• Information about the entity’s business activities
• Organizational structure
• Staff responsible for performing compliance functions
• Resumes and job descriptions of personnel who will act as compliance officers within licensed entities

Approval Requirements

To obtain approval to perform compliance function services, a corporate entity must demonstrate its ability to provide effective compliance oversight and risk management. The FSC conducts fit and proper assessments of two individuals:

• One from the licensee
• One from the approved corporate entity

Licensee Responsibilities

While utilizing an approved corporate entity to perform compliance functions, licensees are still responsible for overseeing the performance of this function. They must submit a Form A, along with relevant supporting documentation, in accordance with the Guidelines for the Approved Persons Regime on behalf of the person appointed as the senior officer with responsibility for overseeing the licensee’s compliance function.

Penalties

A corporate entity is prohibited from performing a licensee’s compliance functions unless both applications have been received and approved by the Commission. Failure to comply with these regulations may result in penalties, including:

• Fines
• Revocation of approval

Conclusion

The Financial Services Commission has emphasized the importance of strict compliance with these guidelines to ensure the integrity and stability of the financial system in the British Virgin Islands. By understanding these requirements, corporate entities can better navigate the application process and ensure effective compliance oversight and risk management for licensed entities.