BVI Government Confirmed its commitment to Public Register of Beneficial Ownership

The government of the British Virgin Islands has approved the commitment to introduce public registers of beneficial ownership for BVI-incorporated companies. Andrew Fahie, the Premier and Minister of Finance of the jurisdiction, informed the House of Assembly that the government would work towards a publicly accessible register of beneficial ownership for companies.

The Premier also emphasized that the progress of this issue would be “in line with international standards and best practices as they develop globally” and would aspire to match the EU’s most recent anti-money-laundering directive. He also said: “In advancing this commitment, we will be informed at all times by global best practice at the time within a timeframe that we consider deliverable.”

According to the Foreign Office Minister for the Overseas Territories and Sustainable Development, the BVI would be adopting public registers by 2023.

BVI FSC Issued Q3 2019 Statistical Bulletin

The British Virgin Islands Financial Services Commission has published the fifty-fifth volume of Quarterly Statistical Bulletin, where provided important information on different sectors of the financial services industry on the Territory for the third quarter of 2019.

According to the statistics on the Registry of Corporate Affairs, there were 6,975 new incorporations in the reported period, which is an increase of 9.58% as compared to 6,365 Business Companies registered in Q2 2019 and a decrease of 27.15% as compared to 9,575 new BC’s in Q3 2018. As at September 30, 2019, total cumulative number of Business Companies in the British Virgin Islands was 402,234. 

In the three months ended September 30, 2019, 48 new Limited Partnerships were formed, which is a 29.73% increase as compared to the second quarter when 37 LP’s were incorporated, and a 57.89% decrease compared to 114 new Limited Partnerships registered in the third quarter of 2018. Cumulatively there were 927 Active Limited Partnerships in BVI as at 30 September 2019.

As to the information by the Intellectual Property Unit within the Registry of Corporate Affairs, total number of new applications to register a Trademark for Q3 2019 increased to 89, from 75 in Q2 2019. In Q3 2018, there were 69 applications. For the total year 2018, 225 Trademark applications were filed, compared to 221 application for the first three quarters of 2019. Also, in Q3 2019 two patents were re-registered in the Office of Trade Marks, Patents and Copyright (0 in Q2 2019, 4 in Q3 2018). 

The Quarterly Statistical Bulletin of the BVI FSC also includes information from Banking, Insolvency and Fiduciary Services, including Balance sheet for all commercial banks, which showed the small reduction of the banking sector’s total asset size, which is approximately $2.34 billion this quarter (4% less than in Q2 2019). Further statistics covers the Financial and Money Services, Fiduciary Services, Insolvency Services, Investment Business and Insurance departments, as well as Enforcement, Ongoing Supervision and International Co-operation matters.

BVI Premier Announces Revenue from Financial Services to Drop off

When addressing the House of Assembly during the budget debate, BVI Premier and Minister for Finance Andrew Fahie has said the British Virgin Islands’ revenues from the financial services sector dropped off by roughly US$30 million. He also said he had to put several projects on hold, including those in the health services, because he knew that this drop off would happen.

Meanwhile, the financial services sector was expected to see boom this year, which could be the result of the EU insisting that the territory implement the Economic Substance (Companies and Limited Partnerships) Act which makes it mandatory for offshore financial services companies to be physically present in the BVI territory. This Act was passed to remove the BVI from the EU blacklist on non-compliant jurisdictions. By words of the Director of International Business Neil Smith, due to opening physical offices the number of companies in the jurisdiction would have been reduced, but the number of persons involved in the industry was likely to triple.

Digicel Announced the Appointment of New CEO

Digicel British Virgin Islands announced the appointment of the new Chief Executive Officer (CEO). Kevin Smith, who performed the duties of Commercial and Operations Director for Digicel from 2013 to 2015, as well as worked as Managing Director of New Direction Business Consulting and held other senior posts at the BVI Post Office and Citco BVI Limited, came back to continue his work in the mobile operator.

Smith has 25 years of experience in commercial and management positions across government and non-government organisations in the British Virgin Islands. His recent role was Chief Operating Officer of the Telecoms Regulatory Commission in July 2018. 

Digicel’s Group CEO Jean-Yves Charlier congratulated Smith on his appointment to lead Digicel BVI having said in his comments: “Along with his strong grasp of the Digicel DNA based on his previous experience with us, he brings the right mix of commercial and customer understanding coupled with a deep passion for technology and development which can only be of benefit to our customers in the BVI.”

New Volume of Statistical Bulletin Published by the Commission

The BVI Financial Services Commission has issued the fifty-fourth volume of its Statistical Quarterly Bulletin, providing information about the financial services activities in the jurisdiction in the first quarter of 2019.

According to the Registry of Corporate Affairs, 7,214 new companies were incorporated in BVI in the first quarter of the year, which is 19.09% decrease compared to 8,916 in the fourth quarter of 2018 and 26.37% decrease compared to 9,798 in the first quarter of 2018. Total cumulative number of registered BCs as at 31 March 2019 was 408,838. Also, in the first quarter of 2019 there were 12 new Private Trust Companies, 1 Segregated Portfolio Company, 1 Foreign Company registered, along with 80 continuations. 

There were 56 new Limited Partnerships (LPs) formed in Q1 2019, which is a 80.65% increase when compared to 31 formed Q1 2018, and a 51.35% increase in the number of LPs formed in Q1 2019 when compared to 37 LPs formed in Q4 2018. Total cumulative number of active Limited Partnerships was 977 as at 31st March 2019.

In the first quarter of 2019, there were 57 new applications to register new Trade Mark, which is an increase by 21.28% when compared to Q1 2018, and a decrease by 1.72% when compared to Q4 2018. According to Banking, Insolvency and Fiduciary Services statistics, there were 6 new General Banking Licences and 1 Restricted Class 1 Banking Licence issued in the first quarter of 2019. The banking sector’s total asset size in this quarter at approximately US$2.43 billion is comparable to Q4 2018’s performance of US$2.37 billion. 

International Cooperation statistics records the number of incoming and outgoing requests for information, classified as formal or informal. In the first quarter of 2019, there were 15 formal and 5 informal incoming and no outgoing requests. Further information and statistics is available at the website of the Financial Services Commission.

New Media Release on Financial Services Business Issued by BVI Finance

BVI Finance has reported the considerable increase in the quantity and quality of business in the financial services sector of the territory in 2018. Besides the highest level of overall new incorporations in three years, there was an increase in the number of higher-end limited partnerships; BVI keeps its leading position in mergers and acquisitions, public listings, and innovative areas such as Initial Coin Offerings.

Chief Executive Officer of BVI Finance Elise Donovan stated in the media release: “More than 400,000 organisations recognise that our strong legal system, business-friendly laws and world-class corporate services sector means we are an indispensable hub for global trade… We are delighted to see that 2018 was a strong year for incorporations as more businesses and individuals chose to take advantage of the strategic and administrative benefits that our global financial centre offers. The noted increase in the quality business happening on-island is a reflection of the type of businesses and professionals making the BVI stronger.”

The release mentioned recent activity of the BVI-based law firms which added to the strength of territory’s financial sector: law firm Ogier provided a counsel on a US$350mln biopharmaceutical merger, Appleby acted as advisers on a private token sale, raising about US$1bln, and earlier in 2018 Harneys represented an Information Technology services provider on a US$2bln merger acquisition. The last transaction is a new BVI record for the largest takeover of a publicly-listed BVI company by transaction value.

BVI FSC Issued Statistical Bulletin for Q4 2018

The British Virgin Islands Financial Services Commission has issued the fifty-third volume of its Quarterly Statistical Bulletin, providing analysis and information about financial services activities for the fourth quarter of 2018. According to the information published by the Registry of Corporate Affairs, which maintains the required registers of companies, there were 8,916 new incorporations of business companies in Q4 2018 (a 6.88% decrease when compared to 9,575 in Q3 2018 and 4.43% increase when compared to 8,538 in Q4 2017). Cumulative number of companies on the Register was 402,907 as at 31 December 2018.

In the fourth quarter of the year, there were 37 Limited Partnerships (LPs) newly formed in the BVI. There was a 37.04% increase in the number of new Limited Partnerships formed in Q4 2018 when compared to 27 in Q4 2017, and a 67.54% decrease in the number of LPs when compared to 114 in Q3 2018. Cumulative number of active LPs was 940 in the year 2018.

According to the information of the Intellectual Property Unit within the Registry of Corporate Affairs, which is responsible for administering all laws relating to intellectual property in the British Virgin Islands, in Q4 2018 there were 58 applications to register a trade mark - that is 61.11% increase when compared to 36 in Q4 2017, and 15.94% decrease compared to 69 in Q3 2018.

The figures of Banking, Insolvency and Fiduciary Services statistics recorded for all commercial banks show the decrease of cash items quarter over quarter and increase year over year. Loans and advances increased quarter over quarter and decreased year over year, while investments decreased quarter over quarter. The Net Interest Income for commercial banks decreased by 1.72% in Q4 2018 when compared to Q4 2017, and decreased by 23.68% in Q4 2018 when compared to Q3 2018.

Further information, including also Investment business and Insurance statistics, can be found on the BVI FSC homepage.

BVI FSC Published New Amendment Order to BVI Business Companies Act

The BVI Financial Services Commission has published BVI Business Companies Act Amendment Order, which came into force on 1 September 2018, and which reduced maximum penalty for late filing of Registers of Directors from US$8,000 to US$5,000. Also, the Order provided for the issue of refund in cases where penalty over US$5,000 was previously applied, and the refund process was already started.

BVI Business Companies that were incorporated before 1 April 2016 were given time until 31 March 2017 to file Registers of Directors at the Registry of Corporate Affairs, and prior to the amendment BVI BCs that failed to file them were subjected to escalating penalty fees.

The registrar is authorized by this Amendment Order to strike existing companies from the Register if they fail to file RODs by the deadline of 31 December 2018, and the companies will need to pay all penalties and fees in order to be restored.

BVI FSC Publishes AML Code and MBC Act Amendments

The British Virgin Islands Financial Services Commission issued two new additions to the regulatory and registration regime in the jurisdiction: An amendment to the Anti-Money Laundering and Terrorist Financing Code of Practice, 2008 (the “AML Code”) and the Micro Business Companies Act, 2017 (the “MBC Act”).

The first one focuses on supporting the use of digital services for customer identification and verification, which provides for global financial technology solutions. The amendment to the AML Code takes effect on 1 August 2018. 

For the Micro Business Companies Act, 2017, there is a new technology that focuses on easy and quick registration of MBCs. BVI FSC expanded its registration system VIRRGIN to provide a new MBC portal. It will be available to registered agents who can develop mobile applications and more efficiently manage and administer MBCs. The MBC Act has come into effect on 5 June 2018, and the registration regime is currently implemented.

BVI Government Appoints Legal Council to Advise on Public Register

In the press briefing held on May 30, BVI Premier and Minister of Finance, Dr Orlando Smith, announced that the government has appointed legal counsel to advise on potential legal issues related to the public register of beneficial ownership imposed by Britain. This appointment followed the UK Sanctions and Anti-Money Laundering Bill which requires Overseas Territories, including the BVI, to make public beneficial ownership of all registered companies. With this Bill, the UK receives the right to implement sanctions on individuals, companies and states, and address money-laundering after the Brexit.

BVI Premier said that the legal team “is confident that the imposition of a public register would raise serious constitutional and human rights issues and would be subject to constitutional challenge.” 

A week earlier, BVI diplomat Benito Wheatley has informed the British government that the UK decision to force public registers of beneficial ownership will negatively impact the jurisdiction’s financial services sector that makes more than 60 percent of government revenue.

BVI FSC Published Statistical Bulletin for Q1 2016

The BVI Financial Services Commission has published the forty-second volume of its Quarterly Statistical Bulletin, providing figures and information on financial services industry in the jurisdiction in Q1 2016. According to the statistics published by the Registry of Corporate Affairs, in the announced period there were 9,456 new companies incorporated, along with 27 Private Trust Companies and 20 Limited Partnerships. The number of company incorporations is higher than in the previous quarter (Q4 2015) but lower than in the first quarter of 2015. Cumulative number of companies incorporated as at 31 March 2016 was 466,081. At that moment, there were also 1,112 Private Trust Companies and 780 Limited Partnerships registered in the BVI.

In Investment Business, 5 new Investment Business Licences were granted in the first quarter of 2016, and cumulative number of Investment Business Licences achieved 467 as at 31 March 2016. Also, 8 Professional Mutual Fund and 4 Private Mutual Fund Licences were granted in the reported period. In the first quarter of 2016, there were 23 fully licences Insolvency Practitioners in the jurisdiction.

According to Legal and Enforcement and International Cooperation statistics, there were 52 formal and 5 informal requests in the first quarter of the year, 47 Enforcement Matters and 21 Enforcement Investigations. 

In 2016, seven Trade Marks Agents were registered in the British Virgin Islands, of them 3 Individual and 4 Partnership Agents. In the first quarter of 2016, 78 new Trade Marks applications were registered in the jurisdiction.

BVI Presented as Top Financial Centre at China Offshore Summit

British Virgin Islands was named the most important and most preferred offshore jurisdiction in the Asia Pacific, already for the sixth year. The survey was conducted inside and outside the region, and in respondents’ opinion BVI remains the undisputed market leader in the financial services industry.

At the 2015 China Offshore Summit, which was held in Shanghai on November 4-5, CEO of Vistra Group Martin Crawford made a presentation on behalf of BVI Finance. He said that the BVI territory held about 50 percent of the market share of new offshore companies formed globally and, of the active companies on the BVI’s registry, about 60 percent were from Asian clients. He stated that in the Global Financial Centres Index the BVI is ranked at the top of the most competitive offshore financial centres, and named some factors that help BVI remain the leader, among them legal and commercial certainty, and robust regulatory standards, being focused on “value-added” rather than pure volume.

Additionally, Crawford said that the top ten listed companies on the Hong Kong Stock Exchange and the Shanghai Stock Exchange had BVI subsidiaries.

Presentations were also made for the BVI at the Summit by group legal counsel at AMS Financial Group, Barry Mitchell, director of BVI House Asia, Elise Donovan, and managing partner in China of Harney, Westwood and Riegels, Kristy Calvert. China Offshore Summit was attended by more than 500 Chinese business leaders.

Annual BVI Asia 2015 Business Conference Held Backed by BVI House Asia

The Business BVI ASIA 2015 annual regional conference which took place on September 23 attracted more than 100 offshore industry experts and leaders from the most progressive businesses in Asia and British Virgin Islands. The conference named "Pivoting to Asia - A View Beyond the Horizon" was sponsored by BVI House Asia already for the second year.

The conference presentations included "China's One Belt One Road Regional Development Strategy: Long Term Opportunities for the Offshore Sector," made by Dr Qian Liu, director of Economics Unit, The Economist Group, Beijing; "Future Disruption in the Offshore Space: Where will the next 'Uber' come from?"; and "Emerging Wealth in China: Millionaire Households and Ultra High-Net Worth Households."

It was stated by Dr.Qian Liu that, with outbound direct investment from China having increased 35% since 2005, "Chinese companies investing in international markets want the certainty that BVI structures, backed by BVI courts and English common law, provide, rather than relying on the courts of countries in emerging markets. Second, China's fast-rising middle class will want trust funds, private wealth management and other services that the BVI can arrange. Finally, the Chinese middle class wants to spend more on tourism, a trend that began in Southeast Asia and continues in Hawaii, Tahiti and the Caribbean. As a tourist destination, the BVI sits on the rising demand for tourism."

BVI FSC Published Financial Services Statistics for Q1 2015

BVI Financial Services Commission has published thirty-eighth volume of the Financial Services Quarterly Statistical Bulletin, which provides statistics and information on financial services activities for the first quarter of 2015. In this period, there were 12,354 new company incorporations in the jurisdiction, - this is an increase compared to 11,436 companies incorporated in the fourth quarter of 2014, but fall in number of companies registered in the first quarter of the previous year (14,062). Cumulative number of companies incorporated in the British Virgin Islands as at 31 March 2015 was 478,865. Also, there were 1,104 Private Trust Companies and 701 Limited Partnerships registered in the jurisdiction at the end of Q1 2015.

According to the Investment Business statistics, 8 Professional and 4 Private Mutual Fund licences were granted in the first quarter of 2015. As at 31 March, 2015, cumulative number of Professional Mutual Fund licences granted was 1,479, and number of Private Mutual Fund licences was 525. Also, there were 83 Public Mutual Funds and 5 Foreign Mutual Funds registered in the jurisdiction. 

In the Insurance sector, the number of insurers and functionaries has not changed since the fourth quarter of 2014; as at 31 March, 2015, the total number of 221 insurance and functionaries licences was granted in BVI.

In the areas of Legal and Enforcement and International Cooperation, there were 29 enforcement matters in the reported period (24 in the fourth quarter of 2014). Also, the Commission issued statistics regarding ongoing supervision matters reviewed by the Licensing and Supervisory Committee, and the Onsite Inspections. Further information about financial services in the BVI jurisdiction in the first quarter of 2015 can be found on BVI FSC homepage.

Thirty Seventh Volume of Quarterly Statistical Bulletin Issued by BVI FSC

The British Virgin Islands Financial Services Commission has published the thirty seventh volume of Statistical Bulletin, providing information about financial services in the BVI for the fourth quarter of the year 2014. In the three months period ended December 2014, 11,436 new Business companies were registered in the jurisdiction, according to the Registry of Corporate Affairs – compared to 13,865 companies incorporated in the third quarter of 2014, and 11,375 companies in the fourth quarter of the previous year. Cumulative number of active BVI BCs as at the December 31, 2014 was 457,971. The statistics shows the slight decrease in the number of new companies incorporated in 2014, as compared to 2013, and the decrease is more significant if compared to the peak years of 2011 and 2012.

In the sector of Investment Business, 11 new licenses were granted to Functionaries, and 28 licenses were issued to Mutual Funds. There were 2,142 Mutual Funds registered/recognised in the British Virgin Islands as at 31 December 2014.

Insolvency Services statistics shows that the total number of Licensed Insolvency Services Practitioners in the fourth quarter of 2014 was 26. In Insurance Services sector, total cumulative number of insurance and functionaries licenses granted at the end of the period was 224.

In the sphere of Legal International Cooperation, in the fourth quarter of 2014 there were 18 international cooperation matters requiring disclosure of non-public information, 2 informal requests and 24 enforcement matters. Further information concerning ongoing supervision matters, referred to the Licensing and Supervisory Committee, the number of concluded onsite inspections and other statistics can be found on the BVI FSC homepage.

BVI in Top Three of Foreign Investors in Philippines

The Board of Investments of Philippines released foreign investments statistics for 2014, which showed the significant 69.42% decrease if compared to 2013. Netherlands are the top source of foreign investments in the country, while Indonesia became the second FDI source. According to BOI data, Netherlands has seven registered projects in Philippines in 2014, the largest of which was the expansion project of 99% Dutch owned Unilever Philippines Inc.

British Virgin Islands, which remained one of the largest foreign investors of the country, is in the third place of the ranking, followed by Switzerland, UK and Japan; however, its investments have substantially declined as compared to 2013. The biggest investment project of the BVI was the Shangri-La Hotel and Services apartments at the Bonifacio Global City.

BVI Maintains Leading Position as to Company Incorporations Activity

Global provider of offshore legal, fiduciary and administration services Appleby has published On the Register report, which provides information on company incorporations in offshore jurisdictions in the first half of 2014.

According to the report, total number of company registrations increased in offshore jurisdictions by 4%, compared to the previous six month period, and made 46,455 new companies. The British Virgin Islands remains dominating jurisdiction as to the volume of new company incorporations: in the first half of the year, 25,533 new companies were registered in the jurisdiction, which is a 6% increase on the previous six months. The BVI maintains far ahead of its follower – the Cayman Islands, which had the largest increase in new company incorporations in this period.

By words of Farah Ballands, Partner and Global Head of Fiduciary & Administration Services at Appleby, “This year is off to an encouraging start, with levels of active companies on the offshore company registers continuing to hold steady.”

BVI FSC Issued Regular Quarterly Statistical Bulletin

Last week, the thirty-fourth volume of the BVI FSC Quarterly Statistical Bulletin was issued by the Commission, providing statistics and analysis about financial services industry in the BVI jurisdiction for the first quarter of 2014. According to the Registry of Corporate Affairs, the number of companies incorporated in this period increased to 14,062, from 11, 376 in the fourth quarter of 2013, the number of Private Trusts was 54 in the first quarter of 2014 (48 in Q4 2013 and 30 in Q1 2013), and there were 28 Limited Partnerships registered (24 in Q4 2013 and 15 in Q1 2013). At March 31, 2014, cumulative number of incorporations was 482,087, including all active companies.

According to the statistics provided by Investment Business industry, in this period 3 new Investment Business licences and 9 Approved Investment Managers licences were granted. In the Mutual Funds sector, 21 professional and 4 private licences were granted in the first quarter of 2014 (33 and 5 licences, respectively, in the previous quarter). 

In Insurance industry, 3 new licences were granted to captive insurers in the first quarter; cumulatively there were 143 captive insurers and 37 domestic insurers as at 31 March 2014.

By Legal and Enforcement and International Co-operation statistics, in the reported period there were 24 International Co-operation Matters requiring the disclosure of non-public information, 10 International Co-operation Matters requiring the disclosure of public information, and 32 Enforcement Matters. Among the ongoing Supervision Matters Referred to Licensing and Supervisory Committee in Q1 2014, there were 96 Banking and Fiduciary Services matters, 191 Investment Business matters, 99 related to Insurance, and 3 to Insolvency Services industry.

The Role of BVI Financial Centre Discussed at China Offshore Summit

BVI House Asia made the presentation named ‘BVI 2.0 – Taking it to the Next Level’, during the China Offshore Summit which was held in Beijing from May 28 to 29, and was visited by more than 300 financial intermediaries, corporate service providers, international trust companies, bankers and lawyers from China. During the presentation, the director of BVI House Asia Elise Donovan spoke about the BVI companies’ use in China and their role today in facilitating cross-border transactions in the market.

British Virgin Islands, as one of the leading financial centres for international investments, remains the top jurisdiction for inward and outward FDI flows in China. It is a connecting link for East and West markets, assisting Chinese companies to access Western capital or technology through acquisitions and listings on foreign stock exchanges. 

Another presentation was made by Harney Westwood & Riegels’ Asia managing partner Jonathan Culshaw, under the name ‘Same same… but Different, Differences between BVI and Cayman Companies’. He outlined advantages of both offshore jurisdictions, among them flexibility in structuring, neutrality, and legal and professional competence in the China/Asia market, but noted that “the BVI is better value for money.”

BVI FSC Issued Statistical Bulletin for the Fourth Quarter of 2013

In the beginning of this week, the British Virgin Islands Financial Services Commission published the thirty-third volume of Quarterly Statistical Bulletin, providing information on financial services industry in the jurisdiction during the last quarter of 2013. According to the statistics of incorporations and registrations, 11,376 new companies (as compared to 12,809 in the third quarter of 2013 and 14,783 in the fourth quarter of the previous year), as well as 24 limited partnerships and 48 private trust companies were registered in this period. Cumulative number of business companies in BVI as at 31 December 2013 was 459,882.

According to the bar graph included in the Statistical Bulletin and reflecting dynamics of business company incorporations in the jurisdiction during the years 2009-2013, there is a decline in the number of new companies in 2013, especially as compared to the years 2011 and 2012, when the peak amount of incorporations could be observed. In 2013, the number of newly incorporated companies is still higher than in 2009. 

By the Banking and Fiduciary Services statistics, four entities were licensed in the fourth quarter of 2013, and total number of licensed entities achieved 235 as at 31 December 2013. In Investment Business, 43 new licenses were granted in the reported period, of which 33 were issued to professional mutual funds, and 8 were investment business licenses. Four licenses were granted in Insurance industry sector.

In the sphere of Legal and Enforcement and International Cooperation, there were 16 international cooperation matters with formal requests, requiring the disclosure of non-public information, and 35 enforcement matters. Also, in the fourth quarter of 2013, 132 ongoing supervision matters were registered in Banking and Fiduciary Services sector, 161 in Investment Business, and 32 in Insurance.

Further information, statistics and analysis of BVI financial services industry in Q4 2013 can be found on the home page of the Commission.