In today’s evolving regulatory landscape, transparency is more important than ever. The British Virgin Islands (BVI), a globally recognized financial hub, has introduced the BVI Business Companies and Limited Partnerships (Beneficial Ownership) Regulations, 2024 (BO Regulations) to enhance financial integrity and align with international anti-money laundering (AML) standards.
Understanding these new requirements is essential for companies and legal professionals managing corporate entities in the BVI. Here’s what you need to know about filing beneficial ownership (BO) information and how CSC can simplify compliance.
Defining a beneficial owner
A beneficial owner is any natural person who ultimately owns or controls a legal entity. This can include individuals who:
- Hold 10% or more of the shares or voting rights in a legal entity (or more specifically as the regulations define it, “legal person”), directly or indirectly
- Have the right to appoint or remove a majority of the board of directors
- Otherwise exercise control over the management of the legal person
Understanding who qualifies as a beneficial owner is critical for compliance with the BO Regulations.
Who must file BO information?
The filing requirements apply to various BVI entities, including:
- Companies limited by shares – Any natural person owning or controlling 10% or more of shares or voting rights.
- Companies limited by guarantee – Members exercising control through voting rights or board appointments.
- Limited partnerships (LPs) – General partners and any limited partners holding 10% or more in capital or profits.
- Trusts and legal arrangements – Trustees, settlors, protectors, beneficiaries with vested interests, and individuals with effective control.
Entities must file BO information for all qualifying individuals through a registered agent within specific timeframes.
The BOI register kept by the Registrar will not be public. It will only be accessible to:
- Competent authorities acting within their legal powers or handling matters under an enactment, including mutual legal assistance requests.
- Law enforcement agencies carrying out their lawful duties.
Key filing deadlines
New legal entities: Must file BO information within 30 days of incorporation, registration, or continuation.
Existing entities: Have six months from the enforcement date of the BO Regulations to comply. Extensions of up to 21 days may be granted under exceptional circumstances.
What information must be filed?
Entities must provide detailed information about their beneficial owners, including:
- Full legal name (as it appears on official ID)
- Date and place of birth
- Gender
- Occupation
- Nationality
- Residential address
- Nature of ownership or control
For trusts, information on the trustee, settlor, protector, and beneficiaries must also be filed. However, licensed trustees under the Banks and Trust Companies Act (BTCA) need only file the trustee’s name.
Penalties for non-compliance
Failure to meet the BO Regulation filing obligations can lead to substantial penalties. The BO Regulations impose a four-tiered penalty system, with fines ranging from $10,000 to $75,000 depending on the severity and nature of the violation. Non-compliance affects not only the legal entity but also senior officers who permitted or agreed to the breach. It’s critical for entities to implement systems to monitor and update BO information regularly.
Exemptions to filing
Some entities may be exempt from filing BO information, including:
- Companies listed on a recognized exchange
- Certain funds regulated under the Securities and Investment Business Act (SIBA)
- Subsidiaries where 75% or more is owned by another entity that has already complied with BO filing requirements
Even with exemptions, entities must notify the registrar and maintain internal BO records.
How CSC can help
Navigating regulatory changes can be complex, but CSC simplifies the process. As a trusted global provider of registered agent and corporate compliance solutions, CSC ensures seamless filing and management of beneficial ownership information.
CSC has you covered. We can help you file your beneficial ownership information in the BVI. Contact us today to ensure your business stays compliant and secure.
