Insolvency (Amendment) Act, 2024

Summary

This Act amends the BVI Insolvency Act, Revised Edition 2020, to broaden the grounds on which the Financial Services Commission may apply to have a court appoint a liquidator over a company, and adds corresponding new grounds under which a company can be found unable to pay its debts (justifying winding up) under section 163.

• Section 162 (Commission's application for liquidator): The Commission may now apply to appoint a liquidator where the company is or has been a regulated person, is or has carried on unlicensed financial services business, is or has been involved in or convicted of money laundering, terrorist financing or proliferation financing, breaches sanctions or embargo laws, or is engaged in activity the Commission considers contrary to the interests of the Territory's financial services industry or the public interest.
• Section 163 (grounds for inability to pay debts): New paragraphs (g), (h) and (i) add money laundering/terrorist financing/proliferation financing offences, sanctions or embargo breaches, and activity the Commission considers not in the public interest as additional grounds supporting a finding that a company is unable to pay its debts.
• Definitions: Money laundering, terrorist financing and proliferation financing carry the meanings given in section 2(1) of the Financial Investigation Agency Act, Revised Edition 2020.
• Commencement: The Act comes into force on a date to be appointed by the Minister via Notice published in the Gazette, not automatically on assent or gazetting.

The amendment does not impose new filing, reporting or administrative duties on companies; instead it expands the Commission's enforcement toolkit, increasing the risk of liquidation proceedings for companies involved in unlicensed business, AML/CFT offences, sanctions breaches, or conduct the Commission views as against the public interest.

Applies to

companies incorporated or registered in the Virgin Islands, regulated persons, persons carrying on unlicensed financial services business

Deadlines

• date the Minister appoints by Notice published in the Gazette: Commencement of the Insolvency (Amendment) Act, 2024

Related documents

• This document amends Insolvency Act (Revised 2020)