BVI FSC Newsletter: April 2022

BVI FSC Releases Statement on the BVI 2021 Commission of Inquiry Report

The BVI Financial Services Commission ("the Commission") wishes to advise the general public and specifically persons within the financial services arena that the Commission, being an independent body for the regulation and supervision of financial services business, continues to regulate the conduct of financial services business in and from within the Virgin Islands. The Commission of Inquiry, whose report has just been published, has described the Commission as "an example of a statutory board which has policies in place to promote good governance" and consequently did not see the "need to call for oral evidence on" its activities. 

The Commission will continue to robustly implement and enforce all the financial services laws of the Territory while at the same time embracing innovation and business continuity for the continued development of the financial services industry. Accordingly, the Commission implores persons within the financial services sphere to adhere to all the Commission's financial services laws and regulatory standards.

VIRRGIN: Legacy Company Filing Transactions Updated 

Industry practitioners are asked to note that effective today, May 2, 2022, legacy company (files created prior to the launch of VIRRGIN) transactions would be streamlined for faster accessibility and viewing when conducting company searches in VIRRGIN. As an alternative to viewing separate transactions, the entire file will be scanned in one or more pdfs, based on the size of the file.

Register of Directors Guidelines For New and Continued Companies as Per BVI Business Companies Act

Under sections 113 and 118B(2) of the BVI Business Companies Act, newly incorporated companies must appoint a director(s) within six months of incorporation and file the Register of Directors (ROD) within 21 days of the appointment. Continued companies should file the ROD within 21 days of continuation.

Failure to file the ROD within specified periods under the above legislation results in the company going into the penalty phase. Effective immediately, an electronic notice of the company's penalty period is sent through VIRRGIN for companies now in the penalty stage. If the ROD is not filed within 30 days of the notice, the company will be struck off the register.

Removal of United Kingdom Expired Trade Marks From the Register of Trade Marks

The Office of the Registrar of Trade Marks, Patents & Copyright of the Commission continues its Annual Audit of United Kingdom ("UK") Registered Trade Marks and notifies all registered Trade Mark agents that expired UK re-registered Trade Marks that have not been renewed will be removed from the Register of Trademarks.  

According to the Registration of United Kingdom Trade Marks (Cap. 157), section 14(2) states: "If the Registration in the Register is not so renewed, it shall be removed by the Registrar."

All removals are published in the Virgin Islands Official Gazette on an ongoing basis. Following sections 59 (4), (5), (6) and (7) of the Trade Marks Act, registered Trade Mark agents and owners are reminded that they can restore and renew their marks up to six (6) months from the date of publication. After that, the marks are permanently struck from the Register of Trademarks.

Under the Financial Services (Trade Mark Fees) Regulations, Trade Mark owners who are desirous of maintaining the protection of their Marks in the Territory should use this opportunity to update their mark(s) with the payment of the applicable penalty, restoration and renewal fees.

The penalty fees for Trade Marks renewal, restoration and penalties are as follows:

(Each additional class in the Trade Mark Legislation - $150.00)

Agents and owners can acquire details of any Trade Mark registration by conducting a company search at the Commission's Office of the Registrar of Trademarks. Please email [email protected] for more information on the registration of Trade Marks and Patents, along with any questions or queries.

ML and TF Risk Assessment Findings – Insolvency Services

This month, as part of our final efforts to educate persons and raise public awareness about threats and vulnerabilities facing the territory, we highlight the findings of the money laundering (ML) and terrorist financing (TF) risk assessment reports relating to the Insolvency Services sector.

ML Risk Findings: Threats, Vulnerabilities, Risk Factors, and Overall

Risk factors identified within the Insolvency Services sector include potential collusion between insolvency practitioners ("IPs") and clients and exposure to high-risk clients and jurisdictions. As a result, the Insolvency Services sector received a Medium-Low rating.
ML vulnerabilities included a low level of Suspicious Activity Reports ("SARs") filed. Further, 60 per cent of the SARs filed by the Insolvency Services sector related to a lack of proper Customer Due Diligence ("CDD") information, issues involving PEPs or possible instances of fraud. It was also found that vulnerabilities lie in the diversity of clients, including international Politically Exposed Persons ("PEPs"), the potential for non-face-to-face business, and appointments involving businesses operating in high-risk jurisdictions.

TF Risk Findings: Threats, Vulnerabilities, Risk Factors, and Overall Ratings

The TF risk assessment identified risk factors, including the potential for no-face-to-face business and exposure to high-risk clients and jurisdictions. In the context of TF, this resulted in the Insolvency Services sector receiving a Low-risk rating.
TF vulnerabilities included appointments that may involve the potential for non-face-to-face business, a client base that may include international PEPs and businesses operating in high-risk jurisdictions. However, since the general nature of the Insolvency business is not ongoing, it makes the risk of the sector being used for any TF purposes extremely low.

What should be done going forward?

To mitigate risks, Insolvency Service practitioners should consider all identified national and sectoral threats and vulnerabilities and ensure the recommendations made in both the Money Laundering and Terrorist Financing Risk Assessment reports are fully implemented into their risk assessments. The Commission will undertake regular evaluations of such implementation through its onsite and desk-based supervisory models.

All recommendations can be found in the Virgin Islands Financial Services Sector Money Laundering Risk Assessment Report and Terrorist Financing Risk Assessment Report. For questions or queries on AML/ CFT matters, please email [email protected].

Filing of Documents Via VIRRGIN on Public Holidays
Documents for transactions filed in VIRRGIN on public holidays should be dated with the next business day's date to be consistent with the filing date that VIRRGIN will assign. E.g., if a company is incorporated on Good Friday 2022, the filing date in VIRRGIN and the Certificate of Incorporation is dated 19 April 2022. The Memorandum & Articles of Association should also bear the next business day's date.

April Public Statement 
MIGA MARKETS LIMITED