Proliferation Financing (Prohibition) (Amendment) Act, 2024

Summary

This Act amends the Proliferation Financing (Prohibition) Act, 2021 (BVI) to tighten prohibitions on dealing with or making available assets linked to designated persons, countries or entities, and to widen the mandatory reporting regime. It comes into force on a date to be fixed later by the Governor via Gazette proclamation, so it is not automatically effective on passage.

• Strict liability: Sections 15 and 16 are reworded so that dealing with, or making available, a controlled/held asset (directly or indirectly, wholly or jointly) is prohibited without any knowledge or intent qualifier, effectively making the offences strict liability.
• No minimum threshold for reporting: Section 37(1) is amended to remove the previous $10,000 value threshold, so reporting obligations now apply to transactions of any amount.
• New reporting duty (s37(1A)): A person who, while complying with sections 15 or 16, becomes aware of a dealing, attempted dealing, or making available of an asset must report to the Agency, identifying the designated person or entity involved (owner/controller, beneficiary, or person acting on their behalf).
• Section 38 exemption removed: Section 38(1)(b) is deleted, removing that paragraph's exemption/provision from the principal Act.
• Guidelines power (new s49A): The Agency is empowered to issue, review and publish guidelines on designations, freezing of assets, reporting obligations, disclosure restrictions, and monitoring of financial institutions and DNFBPs; failure to follow guidelines is not itself an offence but can be considered in assessing contravention.

The amendments primarily affect any person subject to the Proliferation Financing (Prohibition) Act, including financial institutions and DNFBPs, who deal in assets or have reporting obligations under sections 15, 16 and 37. Commencement awaits a Governor's proclamation, so the operative date is not yet fixed by this text.

Key obligations

• Persons must not deal with an asset owned, controlled or held directly or indirectly, wholly or jointly by a designated person, country or entity (amended section 15), regardless of intent (strict liability).
• Persons must not make an asset available, directly or indirectly, wholly or jointly, to a designated person, country or entity (amended section 16), regardless of intent (strict liability).
• Any person who, in complying with sections 15 or 16, knows of a dealing, attempted dealing, or making available of an asset must report this to the Agency, identifying the designated person or entity and related parties as specified in new section 37(1A).
• Reporting obligations under section 37 now apply to transactions of any value, since the prior $10,000 threshold has been removed.
• The Agency must review its guidelines from time to time and publish them and any amendments on its website (section 49A(4)).

Applies to

financial institutions, DNFBPs, persons dealing with or holding assets subject to the Proliferation Financing (Prohibition) Act

Deadlines

• date to be appointed by the Governor by Proclamation in the Gazette: Commencement date of the Act is not fixed in the text and will be set later by proclamation.