Local companies promised protection with new legislation
New financial services legislation to be implemented in the British Virgin Islands is expected to provide enhanced protection for local companies.
The revisions aim to strike a balance between meeting regulatory requirements and the challenges encountered by businesses in the BVI.
Premier Dr Natalio Wheatley introduced the BVI Business Companies Amendment No. 2 Bill 2024, which is expected to ease the burden on local businesses significantly. The changes come as part of broader efforts to ensure compliance with international financial standards while providing more flexibility for companies to meet their obligations.
Premier Wheatley stressed the urgency of the new amendments, noting that it was a crucial step towards adherence to global financial standards. “It is with some urgency that I present the BVI Business Companies Amendment No. 2 Bill 2024, which seeks to further amend the BVI Business Companies Act Revised Edition 2020 in response to ongoing challenges,” he stated.
One key amendment involves Section 98A, which requires all BVI-registered companies to file annual financial returns within nine months of their financial year-end. Premier Wheatley explained, “Failure to comply would trigger serious consequences for the company, such as the risk of being struck off or being unable to obtain a certificate of good standing”. The new mandate aligns with international transparency standards set by the Global Forum on Transparency and the Exchange of Information for Tax Purposes.
A recent report from the Financial Services Commission raised alarms after it revealed that between 25 and 30 per cent of BVI-registered companies had not submitted their financial returns by the deadline. The new amendment allows the Financial Services Commission to grant extensions to address this issue. Wheatley noted that the bill seeks to “reduce the need for costly and time-consuming enforcement actions while still ensuring that companies meet their legal obligations”.
Impact on small businesses
Opposition Leader Ronnie Skelton expressed concern about the potential impact on smaller local businesses. “This bill… is going to be a problem to them, and they’re not going to make it,” Skelton warned during the debate, adding that many small businesses could face penalties if unable to comply. He argued that local enterprises, such as small trucking companies, should be protected from stringent measures that could lead to their financial downfall.
Skelton also highlighted the risk of these companies being struck off the financial services register if they fail to meet the new requirements. “When you strike a company, one of the local companies, all the assets in that company go to the Crown,” he explained.
In response to these concerns, the Premier reassured the House that the amendments are designed to balance effective regulation and the practical realities of running a business. He emphasised that these changes are necessary to ensure the territory’s financial services sector remains in good standing internationally while also supporting local businesses.
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Both Ronnie and Fraser were the only two who were championing this cause all along
No possibility of that being perceived as a red flag for money laundering by FATF and US law enforcement; especially after the Fahie/Maynard debacle.
Honestly, the lack of awareness of the world the BVI operates in on the part of our leaders is astonishing.
Don’t let the expats do their own laundry, we’ll be happy to do it locally at a price.
… a former Labour commissioner claimed a constitutional right to do the laundry for a charter company.
Reads more like legal forgiveness for not submitting required financial statements ON TIME. It would make more sense to increase the fines for late submission of financial statements to deter this pervasive ‘island time’ problem.
Furthermore struck off companies can be reinstated by submitting their financial statements and paying a fine. A struck off company’s assets are not transferred to the Crown. The assets are held by the court for eventual payment to all the valid creditors.
But what kind of business are you running if you aren’t able to produce a year end financial statement?
We in the BVI live in a bubble
We need to wake up and face reality
How long can we push the truth under the rug and pretend nasty corruption of our hard earned dollars are not abused, mishandled, go to family and friends for personal gains
Wr all look on and PRETEND everything is ok
Why do we not take a stand and clean up the financial brokenness in our country
Some even want to justify wrong
Our country is goin darker and darker
Can someone shut down V**O for the bullying campaign it has launched against a defenseless woman in the community. It is clear to see who is behind the hate campaign and they are filtering through the comments to only allow the ones that support the nonsense. When men begin to act like girls, that’s where we have a problem in this society. The young people have to witness this less than a man-ism (for lack of a better word). Which businesses are honestly affiliating themselves with that man/acting like a girl? It needs to stop.