Industry Circular 46 of 2024 - BVI FSC and BVI FIA Announce the Publication of Guidelines for Beneficial Ownership Obligations under the Anti-money Laundering Regulations and Anti-money Laundering and Terrorist Financing Code of Practice

BVI FSC and BVI FIA Announce the Publication of 
Guidelines for Beneficial Ownership Obligations under the Anti-Money Laundering Regulations and Anti-money Laundering and Terrorist Financing Code of Practice

Tortola, British Virgin Islands; 20 December 2024 - The BVI Financial Services Commission (the FSC) and BVI Financial Investigation Agency (the FIA) have today issued guidance on ‘Beneficial Ownership Obligations under the AML Regulations and AMLTF Code of Practice’ (the Guidelines), for the benefit of their respective supervised entities.

These Guidelines have been developed to assist Financial Institutions supervised by the FSC and Designated Non-Financial Businesses and Professions supervised for AML/CFT purposes by the FIA in understanding the requirements for collecting and maintaining Beneficial Ownership (BO) information under the Virgin Islands’ AML/CFT/CPF regime.

Details within the Guidelines provide in-depth context of beneficial ownership and control elements for companies, partnerships, trusts and other arrangements that a relevant person may encounter.  They cover scenarios of direct and indirect ownership, as well as the risks that may exist in more complex ownership structures.  

A key purpose of the Guidelines is to aid entities in understanding how to determine the BO information that is required to be maintained for different legal entities, including companies, partnerships and those involving trusts.  The Guidelines also provide guidance on entities’ legal obligations to identify and verify BO information, including where ownership is by way of control, and to ensure this information is properly maintained and kept up to date.

Examples of common indicators that may point to concealed BO information are provided, including scenarios that may appear normal in some contexts and others that may trigger a suspicion requiring further investigation.  

The FSC and FIA encourage FIs and DNFBPs to familiarise themselves with the Guidelines as proper identification and maintenance of BO information is critical to ensuring the legal persons and legal arrangements incorporated and/or registered in the Territory are not misused or abused for criminal purposes. 

The FSC and FIA remain committed to enhancing the Territory’s capability for fighting ML, TF, PF and other financial crimes and will continue to take steps to ensure that relevant tools are made available to supervised entities so that they can do their part in securing compliance.

Managing Director/CEO of the FSC, Mr Kenneth Baker, stated: “These Guidelines have been designed to assist in developing an effective approach to mitigating ML, TF, and PF risks specifically related to beneficial ownership. They offer practical guidance on how our financial institutions can adhere to the BO requirements under the Territory’s AML/CFT/CPF regime, by navigating the intricate BO requirements of our legal structures.  Adherence to this and all other guidance issued by the FSC will go a long way in mitigating against emerging threats and ensuring compliance with international standards.”       

The Director of the FIA, Mr Errol George, commented, “The FIA remains steadfast in its task of disrupting financial crime. These Guidelines, along with our ongoing training and outreach programs, will further empower DNFBPs to play a central role in safeguarding the BVI's financial system.” 

The Guidance on Beneficial Ownership under the AML Regulations and AMLTF Code of Practice is available on the FSC's website and here on the FIA’s website.

Questions concerning this Press Release may be directed to [email protected] or [email protected].