British Virgin Islands

6. Other relevant matters

Anti-money laundering rules and other regulatory provisions

The Anti-Money Laundering Regulations 2008 and Anti-Money Laundering and Terrorist Financing Code of Practice 2008 (as amended in 2009) issued under the Proceeds of Criminal Conduct Act 1997 require trust companies to carry out due diligence procedures when offering corporate or trust services. Trust companies are also required to:

  • submit their procedures (for identification, record-keeping, internal reporting, internal controls, and communication) for approval by the Reporting Authority
  • establish written internal procedures
  • report knowledge or suspicion of money laundering to the company’s internal reporting officer and disclose it to the reporting authority, and
  • maintain records of all transactions carried out by or on behalf of any persons for at least five years from the completion of the transaction or end of the business relationship.

Reporting of suspicious transactions to the reporting authority is a defence under the Proceeds of Criminal Conduct Act 1997 against commission of the offence of assisting in retention or control of proceeds of criminal conduct or of acquiring, possessing or using proceeds of criminal conduct.

The Financial Services Commission Regulatory Code 2009 (the Code) introduced in late 2009, governs all regulatory matters regarding licensed entities operating in the British Virgin Islands. The Code governs procedures relating to the obligations of the licensee to the Regulatory Authority, creates offences in respect of those obligations and fixes penalties for the offences.


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