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Compliance Officer Responsibilities in British Virgin Islands

In a significant move to modernize its approach to financial services regulations, the British Virgin Islands (BVI) has amended its Financial Services Commission Act 2001 to permit corporate compliance function services for licensees. This change signals a shift away from the traditional requirement that only individuals can serve as compliance officers.

New Regulations and Approval Process

Under the new regulations, the Financial Services Commission (the Commission) may approve a body corporate to provide compliance function services to licensees upon receipt of a written application. However, before engaging such services, a licensee must submit an application identifying a senior officer who will oversee the compliance function and obtain approval from the Commission.

  • The approval process has been simplified, reducing the time and complexity associated with assessing executive directors and ultimate beneficial owners.
  • Only approved corporate entities can provide compliance function services in the BVI. Unapproved providers based outside of the BVI may continue to offer services, but their compliance officers will still require Form A approval from the Commission.

Eligibility Criteria for Corporate Entities

To prepare an application for approval, corporate entities must meet certain criteria:

  • Be incorporated under the BVI Business Companies Act 2004
  • Have employees physically resident in the BVI
  • Provide a written undertaking not to assign or deploy unapproved employees to perform compliance functions
  • Demonstrate a primary responsibility to serve licensees based in the BVI

Assistance from Harneys’ Regulatory Team

Harneys’ regulatory team is well-equipped to assist corporate entities with their obligations under financial services legislation, preparing applications for approval, and developing business plans that meet the Commission’s requirements. If you require assistance, please do not hesitate to reach out.