Due Diligence Crucial in British Virgin Islands’ Financial Transactions

The British Virgin Islands (BVI) government’s Banking and Fiduciary Services Division has reiterated its commitment to ensuring that all financial institutions operating within its jurisdiction adhere to strict due diligence requirements.

Regulatory Framework for Due Diligence

Under the division’s regulatory oversight, banks, trust companies, and other financial service providers are required to comply with both local laws and international standards. This includes supervisory checks on licensed custodians of bearer shares and financing and money services businesses.

Key Legislation Supporting Due Diligence

• The Banks and Trust Companies Act, 1990
• The Company Management Act, 1990
• The Financial Services Commission Act, 2001
• The Financing and Money Services Act, 2009

Role of Regulatory Officials

The BVI’s regulatory officials play a crucial role in ensuring that all parties involved in financial transactions have completed thorough checks on clients and partners. This includes providing support services to facilitate the smooth conduct of financial transactions.

Importance of Due Diligence

According to Glenford Malone, Ag. Deputy Managing Director for Regulation at the Banking and Fiduciary Services Division, due diligence is essential in preventing financial crimes such as money laundering and terrorist financing. “Our regulatory framework is designed to protect both local businesses and international investors by ensuring that all financial transactions are carried out with the utmost transparency and accountability,” he said.

Benefits of BVI’s Regulatory Framework

The BVI’s commitment to maintaining a secure and efficient financial environment has earned it a reputation as one of the most popular jurisdictions for offshore banking and investments. With its robust regulatory framework, the territory continues to attract both local and international businesses seeking to tap into its growing economy.