The British Virgin Islands Financial Services Commission (FSC) is making substantial strides in its regulatory framework to cement the BVI's position as a leading global financial centre. In a BVI Finance Breakfast Forum, on the 24th of July, Glenford Malone, Deputy Managing Director of Regulation, highlighted the FSC's commitment to implementing the recommendations from the Caribbean Financial Action Task Force’s Mutual Evaluation Report and other key regulatory updates.
"The response from our industry partners has been exceptional, allowing us to make rapid progress on key regulatory actions," Malone said. "Since the report's publication, we've seen exceptional engagement from various sectors, enabling us to advance on several significant legislative amendments."
Key Legislative Amendments and Industry Collaboration
Malone emphasized the critical role of industry feedback in refining the Business Companies Amendment and other regulations. "We have incorporated the industry's insights to ensure that the BVI remains competitive while adhering to global standards," he noted. These legislative amendments reflect a balance between robust regulation and industry needs, ensuring that BVI remains an attractive jurisdiction for legitimate business activities.
Virtual Asset Service Providers (VASP) Regime
Also a focus of the FSC's efforts is the new Virtual Asset Service Providers (VASP) regime. "We are making significant strides in the VASP regime, aiming to provide comprehensive guidance and ensure that all entities meet the necessary compliance requirements," Malone said. The FSC is actively working with stakeholders to address challenges and establish clear regulations in this rapidly evolving sector.
Malone also highlighted the importance of effective implementation, stating, "Having robust policies and procedures is only part of the equation. Effective implementation is critical, and we are committed to ensuring that our regulations are adhered to in practice."
New Guidance and Ongoing Initiatives
In addition to the VASP regime, the FSC is issuing new guidance on investment business, beneficial ownership, and risk assessments. These initiatives are designed to enhance transparency and maintain the integrity of the financial services offered in the BVI.
"We are dedicated to maintaining a robust regulatory environment that supports legitimate business activities while ensuring compliance with international standards," Malone added. The FSC plans to release guidance on the travel rule for virtual assets, investment business, and beneficial ownership and control by the end of the year.
Industry Engagement and Future Plans
The FSC continues to prioritize communication and collaboration with the industry. Regular forums and consultations are being held to discuss ongoing developments and gather feedback. "Our goal is to create a regulatory framework that is both effective and responsive to the needs of the industry. The input we receive from our partners is invaluable in achieving this balance," Malone emphasized.
The FSC also addressed the importance of targeted financial sanctions and effective monitoring for legal proceedings and arrangements. "Screening has to be done immediately upon a designation being made, and any assets must be frozen immediately," Malone explained. This ensures that the BVI's regulatory framework is robust and effective in preventing financial crimes.
More than 300 persons joined the Breakfast Forum which was moderated by BVI Finance CEO, Elise Donovan. The attendees posed more than 60 questions to Deputy Managing Director Malone.
Watch the BVI Finance Breakfast Forum here.
For further information please contact:
Adrianna Soverall
Marketing and Media Relations Coordinator
asoverall@bvifinance.vg |Tel: 284-852-1957