Financial Crime World

Legislation Overhaul in BVI Financial Sector

The British Virgin Islands Financial Services Commission (BVI FSC) has announced a comprehensive overhaul of the financial sector’s legislation, aimed at enhancing transparency, stability, and competitiveness. The revised regulations, effective from 2020, introduce new measures to govern banks, trust companies, investment businesses, insurance companies, and other financial institutions operating in the BVI.

Key Amendments

  • The Financing and Money Services (Amendment) Act, 2020 has introduced new licensing requirements for money services businesses.
  • The Financial Investigation Agency (Amendment) Act, 2021 has enhanced powers for financial investigation and monitoring.
  • The Financial Services Commission (Amendment) Act, 2022 has streamlined regulatory processes, increased penalties for non-compliance, and strengthened oversight of licensees.
  • The Insolvency (Amendment) Act, 2023 has introduced new procedures for debt restructuring and creditor protection.

New Regulations

  • Securities and Investment Business Regulations
    • Regulates investment business activities, including securities trading and advisory services.
  • Investment Business (Approved Managers) Regulations
    • Requires approved managers to register with the BVI FSC and comply with regulatory requirements.
  • Mutual Funds Regulations
    • Regulates mutual funds and their service providers in the BVI.
  • Trusts and Estates legislation
    • Revised to enhance transparency, accountability, and customer protection for trust companies and estates.
  • Virtual Assets Regulations
    • Introduced new requirements for virtual assets services providers, including registration and ongoing regulatory obligations.

Enhanced Supervision

  • The BVI FSC has strengthened its supervision of licensees through enhanced risk-based monitoring and enforcement mechanisms.
  • Increased resources dedicated to anti-money laundering and counter-terrorism financing (AML/CFT) efforts.

Strengthened Customer Protection

  • Prioritizes customer protection, introducing new measures to:
    • Prevent fraud
    • Protect vulnerable customers
    • Ensure fair treatment of policyholders

Further Information

For more information on the revised regulations and their impact on financial institutions operating in the BVI, please contact the British Virgin Islands Financial Services Commission at [insert contact details].