Yes. The BVI passed the Proceeds of Criminal Conduct Act in 1997 and the Act refers to the proceeds of all indictable offences except drug trafficking which is dealt with under similar provisions under the Drug Trafficking Offences Act, 1992.

• assisting another to retain the benefit of criminal conduct;
• acquiring, possessing or using the proceeds of criminal conduct,
• concealing or transferring proceeds of criminal conduct; and
• tipping off.

Yes. The Reporting Authority is the financial intelligence unit established under the Proceeds of Criminal Conduct Act for the receipt of suspicious financial transaction reports.

Under Section 28 and 29 of the Proceeds of Criminal Conduct Act,1997 (which deal with the offences of assisting another to retain the benefit of criminal conduct, and acquiring, possessing or using the proceeds of criminal conduct, respectively) it is a defence if a person can show he made a disclosure to the Reporting Authority before the fact, or that he made a disclosure after the fact but on his own initiative and as soon as it was reasonable for him to make it. The Proceeds of Criminal Conduct Act applies to all persons (not only service providers) and, accordingly, all persons are urged to make disclosures to the Reporting Authority. In addition, service providers covered by the AntiMoney Laundering Code of Practice, 1999 are required by paragraph 14(1)(f) to have internal procedures designed to ensure, inter alia, that such suspicious transactions are reported.

No. Unlike in the legislation of some other jurisdictions, the BVI legislation does not require nor authorise the Reporting Authority to give or withhold consent to the service provider proceeding with suspicious transaction. This is a judgment call for the service provider.

Yes. The Anti-Money Laundering Code of Practice issued in 1999 under the Proceeds of Criminal Conduct Act, 1997 came into force on 29th December, 2000. The Code sets out minimum standards for client identification procedures, verification of identity, maintaining records, training, and the appointment of compliance officers. Contravention of the Code carries a maximum fine of $5,000 on summary conviction, and $15, 000 on conviction on indictment.

1. a banking business or trust business within the meaning of the Banks and Trust Companies Act, 1990.
2. insurance business within the meaning of the Insurance Act, 1994;
3. the business of company management within the meaning of the Company Management Act, 1990;
4. business as a mutual fund or providing services as manager or administrator of a mutual fund within the meaning of the Mutual Funds Act, 1996;
5. any activity involving the remittance of Telegraph Money Order under the Post Office (Telegraph Money Order) Rules, 1934;
6. any activity involving money transmission services or cheque encashment facilities;
7. any activity in which money belonging to a client is held or managed by-
8. an Attorney-at-Law; (ii) an accountant or a person who, in the course of business, provides accountancy services;
9. the business of acting as company secretary of bodies corporate.

1. an individual carrying on relevant business as a sole trader who does not employ any staff;
2. a company that does not employ any staff in the Virgin Islands and whose relevant business is managed by another relevant person in the Virgin Islands, whether solely or in conjunction with persons outside the Virgin Islands;
3. a fund registered under Part II of the Mutual Funds Act, 1996;
4. a fund recognized under Part III of the Mutual Funds Act, 1996; and
5. a manager or administrator licensed under Part IV ofthe Mutual Funds Act, 1996. For the purpose of paragraph (b) above, the relevant business of the following entities is deemed to be managed by another relevant person in the Virgin Islands:
    
   1. a company holding a restricted trust licence issued under the Banks and Trust Companies Act, 1990 ;
   2. a company holding a general trust licence issued under the Banks and Trust Companies Act, 1990 that does not have a physical presence in the Virgin Islands; and
   3. a company holding a licence issued under Insurance Act, 1994 that does not carry on domestic business within the meaning of section 31 of that Act.

1. a captive insurer;
2. a credit life insurer or re-insurer;
3. a fund registered under part II of the Mutual Funds Act, 1996;
4. a fund recoginsed under Part III of the Mutual Funds Act, 1996;
5. a manager or administrator licensed under Part IV of the Mutual Funds Act, 1996;
6. a company holding a restricted trust licence issued under the Banks and Trust Companies Act, 1990; and
7. a company holding a general trust licence issued under the Banks and Trust Companies Act, 1990 that does not have a physical presence in the Virgin Islands.

No. Whether or not a firm or business can apply to be exempt from provisions of the Code or to have the Code modified in respect of that business is strictly governed by paragraph 21 of the Code and any Notices issued under it. A summary of these is given in the answers to the preceding questions. One of the rationale in specifying these categories of persons under paragraph 21 is not that the businesses are small, per se, but that the special nature of the business is such that no client acceptance is done in the BVI. Firms licensed to conduct their financial service from within the BVI will generally be expected to meet the full requirements of the Code without modification or exception.

1. General Banking Licence: twenty thousand dollars (US$20,000)
2. Restricted Class I Banking Licence: sixteen thousand dollars (US$16,000).
3. Restricted Class II Banking Licence: sixteen thousand dollars (US$16,000).

Under the Banks and Trust Companies Act, 1990 General Banking Licence holders are required to have a minimum fully paid up capital of not less than US$2,000,000 or its equivalent in foreign currencies, or such sum as the Commission, by order determines, and has deposited or invested the sum of $500,000 in such manner as the Commission by order, prescribes.

Under the Banks and Trust Companies Act, 1990 Restricted Class I and Restricted Class II Banking Licence holders are required to have a minimum fully paid up capital of not less than US$1,000,000 or its equivalent in foreign currencies, or such sum as the Commission, by order determines, and has deposited or invested the sum of $500,000 in such manner as the Commission by order, prescribes.

The Financial Services Commission adopts the guidelines as set by the Basel Committee for bank regulation and supervisory practices for the calculation of the capital adequacy ratio. The Basel Committee recommends a minimum capital adequacy ratio based on risk weighted assets of 8%.

• Two professional character references
• A police certificate or notarized affidavit as to non- criminal record
• A completed personal questionnaire
• Notarized copy of individual passport identification page(s).
• Detailed resume

An Authorised Agent is a person designated by a bank to act as an intermediary between the licence holder and the Commission.

When changing a shareholder/beneficial interest of a bank, the Commission must be presented with a breakdown of the bank's proposed shareholding (which must indicate the number and percentage of shares held by each proposed shareholder). Additionally, information on the new shareholder must include the following:

• Two professional character references (plus one financial reference)
• A police certificate or notarized affidavit as to non- criminal record
• A completed personal questionnaire
• Notarized copy of individual passport identification page(s).
• Detailed resume

In determining whether an individual is "fit and proper" the Commission will consider: (a) honesty, integrity and reputation (b) competence and capability and (c) financial soundness, of the principals and companies associated with the applicant.

Should you have a complaint against a BVI bank, you are invited to write to the bank explaining your concerns and ask that your request be reviewed by a senior officer or manager of the bank (one who is not directly involved in the complaint). The BVI Financial Services Commission is responsible for the supervision of banks in the British Virgin Islands and does not have the authority to act as arbitrator between parties to a dispute. Albeit, if you feel that the bank has not addressed your concerns the Commission will act mainly as an intermediary, between the complainant and the bank (delete - in question), and seek to establish a factual account of the situation. The Commission will work towards determining whether any violation of laws, regulations and/or policy guidelines has occurred. Complaints are to be made in writing by letter, fax or email to the BVI Financial Services Commission (Commissioner@bvifsc.vg).

The Banks and Trust Companies Act, 1990 is a fairly large document with several amendments. Many service providers unofficial consolidated copies available for their clients. In so far that a specific issue may be in question, the FSC can arrange to mail or fax you a copy of relevant sections.

Application forms are available on the website. However, potential applicants are asked to note that applications should be forwarded to the Commission either through a Legal Advocate or Registered Agent. A list of each can be found on this website.

The creation of the Financial Services Commission addresses the growing global consensus that effective financial services regulation should be carried out by non-government autonomous organizations. The BVI is committed to this premise, as well as to protecting the integrity of the international financial system. In keeping with this commitment, the Financial Services Commission was established as an independent regulatory authority to ensure that all activities of the BVI financial services industry operate within international standards of best practice.

The formation of an independent Commission was one of the core recommendations of the KPMG report in its section on the BVI. However, while this recommendation served as a catalyst in bringing the FSC to fruition, it would not be accurate to say that the FSC was a direct response to the KPMG report. Before KPMG, an independent regulator was one of the items in the UK's Secretary of Sate for Foreign and Commonwealth Affairs' 1999 financial regulation checklist. But even before this, the BVI had begun working towards this ideal through a process of gradual administrative reform.

The cardinal responsibility of the FSC is the regulation and supervision of its service providers thereby protecting consumers and safeguarding the interests of the Territory as a whole.

To uphold the integrity of the BVI as a wellregulated international finance center and safeguard the economic interests of the Territory by: Protecting the interests of the general public and market participants. Ensuring industry compliance with the highest international regulatory standards and best business practices. Ensuring that the BVI plays its part in the fight against cross-border white- collar crime while safeguarding the privacy and confidentiality of legitimate business transactions.

Under the Financial Services Commission Act, 2001, the licensing, authorization, supervisory and enforcement responsibilities previously delegated to the Financial Services Department (FSD) have been transferred to the newly created Financial Services Commission (FSC). All marketing functions related to promoting and marketing of BVI offshore services to the public, are now exclusively handled by the BVI Government.

Operational responsibilities for the Commission are the responsibility of the Managing Director and the management team. The management team is comprised of the Managing Director, Deputy Director and the various departmental unit heads. The management is appointed by the Board, which delegates the powers and responsibilities to perform day-to-day management of the Commission. All FSC policies are overseen by a Board of Commissioners appointed by the Executive Council (Cabinet of Government Ministers). The Board, which acts as a governing and policy setting body, is committed to upholding the integrity of the FSC, protecting the interests of the public and serving all regulated individuals and companies through efficient, transparent and accessible service-oriented policies and procedures

Although the FSC and the Board operate autonomously, the Commission is fully accountable to the BVI Legislative and Executive Councils for the execution of their activities. Annual accounts, work plans and periodic management reports must be provided by the FSC to both Councils for review.

The Commission achieves its goals and responsibilities through the efficient workings of several regulatory and administrative divisions including the following:

• Banking and Fiduciary Division
• Investment Services Division
• Insurance Division
• Corporate Affairs and Intellectual Property Division
• Shipping Registration Division
• Insolvency Services
• Legal and Enforcement Division
• Policy Research and Statistics Division
  

The Financial Services Commission Act has established the Licensing and Supervisory Committee responsible for, among other things, reviewing and determining applications for licences and the on-going supervision of such entities. The licensing process is restricted to organizations with adequate capital and control systems, sound ownership and management, and relevant expertise.

Entities that are authorised to conduct financial services business must appoint a Compliance Officer to ensure compliance with all relevant laws and for maintaining a culture of compliance to be adhered to by all employees. The Commission may take enforcement action against any person operating in violation of BVI financial services laws.

The Commission believes in a free and democratic economic environment. As such, it is open to consider applications from any entity that can satisfactorily demonstrate its financial soundness, fulfill relevant fit and proper criteria and operate in accordance with all relevant laws.

The Commission is totally dedicated to combating money laundering. As such, it has the necessary legislative, regulatory and administrative structures in place. This includes all crimes anti-money laundering code of conduct for service providers. The legislation in turn establishes a financial intelligence unit for the receipt and processing of suspicious reports and this unit has been in operation since 1998.

As with money laundering, the Commission is equally dedicated to the combat of terrorist financing. As an Overseas Territory of the UK, all UN resolutions aimed at countering the financing of terrorism adopted by the UK have been given full legislative effect in the BVI.

The Commission works with international and domestic communities to identify and effectively punish regulatory abuses on the part of BVI registered, incorporated or licensed entities, wherever such abuse occurs. In doing so, the Commission cooperates with like-minded regulatory organizations and law enforcement agencies in combating cross-border regulatory and criminal matters.

The OECD, FATF and ITIO are all organizations, the goals of which include the improvement of and the promotion of change in the world's financial system. These goals are also harmonious with those of the FSC which itself operates in accordance with international standards of the best practice.

A Company Manager is an entity that carries out company management business only, which is defined by the Company Management Act, 1990 as, "the provision of company management services for profit or reward in or from within the Virgin Islands".

A General Trust Licence holder is an entity which holds a valid general trust licence as prescribed by the Banks and Trust Companies Act, 1990 and enables the holder to carry on trust business without restrictions. Trust business as defined by this Act means "the business of (a) acting as a professional trustee, protector or administrator of a trust or settlement, (b) managing or administering any trust or settlement, and (c) company management as defined by the Company Management Act, 1990.

A Restricted Trust Licence holder is an entity which holds a valid restricted trust licence as prescribed by the Banks and Trust Companies Act, 1990 and allows the holder to carry on trust business with restrictions specifically providing trustee services to a limited number of trusts.

A registered agent as defined by the International Business Companies Act ("IBCA") means "the person who is at any particular time performing the functions of registered agent of a company incorporated under this Act pursuant to subsection (1) of section 39" (of the IBCA).

An Authorised Agent is a person designated by a trust company to act as an intermediary between the licence holder and the Commission.

Under the Banks and Trust Companies Act, 1990 General Trust Licence holders are required to have a minimum fully paid up capital of two hundred and fifty thousand dollars (US$250,000) or its equivalent in foreign currencies, or such sum as the Commission, by order determines, and has deposited or invested a sum of money as may be specified by the Commission but not to exceed $100,000.

Applicants for a Restricted Trust Licence are not subject to capital requirements.

Under the Company Management Act, 1990, a Company Manager is required to have a minimum paid up capital of twenty five thousand dollars (US$25,000).

The minimum requirements for obtaining a Company Management Licence are: proven company management experience, a minimum paid up capital of twenty five thousand dollars (US$25,000) and physical presence in the British Virgin Islands. The application fee is two hundred dollars (US$200). Special Note: These requirements are by no means exhaustive.

Note: A consensus has now emerged that only in circumstances where the institution concerned is of blue chip international stature and renown, whose presence in the jurisdiction would be a fillip to the reputation of the BVI as a situs for conduct of international business; or where the institution concerned will be providing additional services not currently provided within the jurisdiction, will company management licences be granted to companies other than companies with local ownership and a physical presence here in the BVI. In both cases, the company is expected to establish its own physical presence and apply for a general trust licence within two years of the grant of the licence. All other interests will initally have to apply for a General Trust Licence.

The minimum requirements for obtaining a General Trust Licence are: a minimum paid up capital of two hundred and fifty thousand dollars (US$250,000), proven trust experience and the applicant must satisfy our "fit and proper" criteria. Special Note: These requirements are by no means exhaustive.

In addition, an applicant who receives written confirmation that the granting of a general trust licence has been approved is required to make the following investment deposits:

• Twenty thousand dollars (US$20,000.) where the licensee provides registered agent services for no companies, or for companies not exceeding 1,500 in number; or
• Forty thousand dollars (US$40,000.) where the licensee provides registered agent services for companies exceeding 1,500 in number.

• Two character references
• A police certificate/affidavit as to non-criminal record
• A completed personal questionnaire
• Notarized copy of individual passport identification page(s).
• Complete resume

1. Company Management Licence: five hundred dollars (US$500) plus ten dollars (US$10) for each company under management.
2. General Trust Licence: ten thousand dollars (US$10,000).
3. Restricted Trust Licence: three hundred dollars (US$300).

Documentation required for the appointment of a director/senior officer:

• Two character references
• A police certificate/affidavit as to non-criminal record
• A completed personal questionnaire
• Notarized copy of individual passport identification page(s)
• Complete resume

In determining whether an individual is "fit and proper" the Commission will consider a person's:(a) honesty, integrity and reputation (b) competence and capability and (c) financial soundness.

Information with respect to establishing a trust in the BVI should be directed to a General Trust Company or Legal Advocate in the British Virgin Islands. A listing of these persons can be obtained from this website.

Information on companies formed in the British Virgin Islands can be obtained from the BVI Commercial Registry. General information on a company's registration number, registered office, incorporation date, status and authorized capital, etc. is available. A small fee is charged for each search and various payment methods are available for your convenience.

Please contact the BVI Commercial Registry to conduct your search. Contact info: (284) 494 5355-phone or (284) 494 6331-fax.

To become a Registered Agent in the British Virgin Islands, a Company Management Licence or a General Trust Licence must be obtained under the laws of the British Virgin Islands.

The Financial Services Commission would be interested in receiving such complaints and will review the matter to determine what are the appropriate steps to take.

The Banks and Trust Companies Act, 1990 is a fairly large document with several amendments. Many service providers have unofficial consolidated copies available for their clients. In so far that a specific issue may be in question the FSC can arrange to mail or fax you relevant sections.

How may I obtain a copy of the application form for a company management licence, restricted trust licence and general trust licence?

Application forms are available on this website. However, potential applicants are asked to note that applications should be forwarded to the Commission either through a Legal Advocate or Registered Agent. A list of each can be found on this website.

The Insurance Act, 1994 is the sole piece of legislation which allows for the establishment of both offshore (captive) and onshore (domestic) insurance companies in the British Virgin Islands.

The total asset size of the captive sector amounts to $1.719 billion and total premiums were $340 million, at the end of 2001.

The regulatory authority for the Territory of the Virgin Islands’ financial industry, captives included, is the BVI Financial Services Commission

The Financial Services Commission requires an audited annual statement from Captives and Domestic insurance companies and an annual statement from credit life companies. Life companies are required to provide actuarial reports annually.

Yes, Captive Insurance companies are required to submit annual audited accounts.

Financial Statements and annual audited accounts are due within three months of the company’s financial year end.

A decision on an insurance application may take from four weeks to three months depending on completeness of the application.

The BVI levies income tax, and corporate tax on companies operating in the British Virgin Islands. However, companies doing business offshore are exempt from similar taxes. The BVI does not have corporate gains tax.

As at the end of 2001, the following numbers of captives, by ownership type, were active in the BVI:

Single	212
Group	27
Agency	4
Rent-a-Captives	6
Long-term Insurance	1
------
Sum	250
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The capital requirement for a company:

General Business	US$100,000
Long-term Business	$200,000
General and Long term business	$300,000

The application fee for a new insurance company is $500.

The application fee in respect of an intermediary is $250.

Captive Company	$2,000
Reinsurance Company	$2,000
Domestic Company	$2,000
Credit Life Company.	$1,000

The Insurance Act 1994 does not define categories of captives nor does it provide restrictions on the type of captives that can be formed. Therefore, risk retention groups and rent a captives can be formed. Specific legislation governing Segregated Portfolios will be available shortly

Under the Territory’s International Business Companies (IBC) legislation, migration to and from the BVI is allowed. However, under the Insurance Act, 1994, migration outward of a licensed insurance company is prohibited without the prior written approval of the Commission.

At the end of 2001, there were 13 Insurance Managers in the Territory.

It is only mandatory for captives to have insurance managers; other type companies have been exempted from the requirement to have an insurance manager.

The amount by which the total value of an insurer’s assets must exceed the total amount of its liabilities, in these Regulations referred 1o as the "minimum margin of solvency" is hereby prescribed :

In the case of an insurer carrying on general business only :

Where the net retained annual premium of the insurer does not exceed $1,000,000 the prescribed amount is $200,000;

Where the net retained annual premium of the insurer exceeds $1,000,000 but does not exceed $5,000,000 the prescribed amount is twenty percent of the said net retained annual premium;

Where the net retained annual premium of the insurer exceeds $5,000,000 the prescribed amount is $1,200,000 plus ten percent of the amount by which the said net retained annual premium exceeds $5,000,000; and

In the case of an insurer carrying on long-term business only two hundred fifty Thousand dollars; and

In the case of an insurer carrying on both general business and long-term business two hundred fifty thousand dollars plus the amounts required for general business.

To add a director, the company is required to complete and submit, to the FSC, a questionnaire which discloses, among other things, any information concerning convictions and requires in support, one financial and two personal references.

The relevant company will be required to complete and submit to the FSC a completed questionnaire that discloses information on convictions and financial and personal character references.

When assessing the fit and proper status of an applicant, the FSC evaluates:

• the honesty and integrity of the individual
• the individual’s competence and capability in exercising his or her duties to the company
• whether the individual is financially sound

Schedule 3 of SIBA lists the categories and sub-categories of investment business licences that may be issued by the Commission.  A single licence may be issued in one or more of the categories listed in Schedule 3.  Where a licence-holder wishes to extend the scope of its licence to provide services that fall under a new category of investment business, an application for the grant of a licence in the new category must be made.  Where the applicant satisfies the requirements for the grant of a licence, the existing licence may be amended to include the new category of investment business.  In order to facilitate the application for a licence in the new category of investment business, the Commission may waive the requirement to provide information and supporting documents that were submitted when the application for the existing licence was made. 

Yes it can. The transitional provisions allow for this.

Refer to company as a BVI Business Company with the existing number and BC approved forms should be used.

All companies that were automatically re-registered will now have the number 700,000 appended to their original company number. For example company number 1 was changed to company number 700,001, company number 567 was changed to company number 700,567, etc.

A company had two months from the date of automatic re-registered to appoint a registered agent. An amendments to Schedule 2 of the Act is being considered to extend this period beyond 2 months and if this occurs the public will be notified accordingly. However, former local companies are strongly advised to ain to comply with the current requirements of two months (which ends of 28 February, 2009) within which to appoint registered agents.

Failure by a company to appoint a registered agent within the prescribed timeframe means that the company cannot effect any transaction which under the Act can be effected only by a registered agent. In addition, the company may be in violation of its obligations under the Act and is therefore liable to be struck off the Register.

Yes. A registered agent is required to file all transactions except the appointment of registered agent and restoration of a company that has been struck off the Register. Registered agents are also responsible for ensuring the payment of annual fees. It is therefore important that all former local companies seek to appoint, as a matter of urgency, registered agents.

VIRRGIN is internet based and is accessible through the use of a standard office computer. The specific techincal requirements are:

• Pentium III processor
• 512 MB RAM
• 10 GB Hard Disk
• Windows XP
• Internet connection
• Internet Explorer 6.0 and above (with Multiple Language Support)
• Adobe Acrobat Reader 7.0
• Scanner (to scan the documents)
• Software to convert documents into PDF

If you do not have enough funds in your deposit account to support the transactions you are trying to complete you have several options:

• increase your deposit account through a payment at the Registry
• select an alternative payment method e.g. credit card
• remove some items from your transaction list to reduce the transaction total

This is the person we will contact regarding any financial management issues, we will also provide notification for critical balance information on your deposit account.

1. Change in case for each word
2. Addition of the letter S to any word
3. Addition of spaces
4. Addition of punctuation (for example: “&”, “,”, “-“ etc)

•             The control sheet should include date of filing, name of company (or proposed name, transaction description or form number)
•          The Registry’s finance staff will accept and stamp the agent copy of the batch to confirm receipt.