Amendments to Anti-Money Laundering (AML) Laws in British Virgin Islands (BVI)

The British Virgin Islands (BVI) has made significant changes to its Anti-Money Laundering (AML) laws. The amendments aim to provide flexibility for BVI mutual funds, fund managers, and administrators while ensuring compliance with international standards.

Key Changes

• Outsourcing AML functions: Entities can outsource AML functions as long as there is a written agreement outlining how AML compliance will be achieved.
• Non-face-to-face business: Enhanced customer due diligence is no longer required for non-face-to-face business, unless the entity assesses an applicant or customer to present a high risk or identity cannot be verified by electronic means.
• Wire transfer test: Wire transfer information can be used to verify the identity of low-risk applicants for business where a subscription or redemption payment is made through a wire transfer from a specific account in a financial institution regulated in a recognized jurisdiction.
• Certified documentation: Certification is only required for copies of documents that the entity considers may not be authentic or may be doubtful, based on an appropriate risk assessment.
• Recognized jurisdictions: A list of recognized jurisdictions has been established, which includes major onshore and offshore jurisdictions such as China, the UK, the US, Bermuda, and the Cayman Islands. Business relationships emanating from these jurisdictions will attract reduced customer due diligence measures.

Independent Audit

Regulated entities must establish and maintain an independent audit function to test compliance with their written system of internal controls and other provisions of the Regulations and Code.

The changes aim to provide flexibility for BVI mutual funds, fund managers, and administrators while ensuring compliance with international standards.