Memorandum of Understanding between FSC and FIA

Summary

This is a Memorandum of Understanding (MoU) between the BVI Financial Services Commission (the Commission) and the Financial Investigation Agency (the Agency), effective from 31 January 2024. It establishes a framework for the two authorities to exchange confidential information and provide mutual assistance on matters of due diligence, money laundering, terrorist financing and proliferation financing, in order to help preserve the BVI's reputation as a financial centre.

• Scope: Covers requesting, providing and continuously sharing information (including statistical data) on persons connected to the BVI who are regulated by either authority or who may pose a threat to the integrity of the financial system.
• Confidentiality: Sets rules on how confidential information received from the other authority must be protected, restricted in use, and only shared onward with prior written consent or in emergency situations.
• Assistance mechanisms: Allows for exchange of information, verification of information, facilitation of inquiries, and participation in inspections or examinations of supervised entities.
• Emergency situations: Requires the authorities to endeavour to notify each other promptly where a supervised entity poses a severe threat to financial system integrity or is suspected of facilitating money laundering, terrorist financing, proliferation financing or sanctions evasion.
• Costs and termination: Permits the Requested Authority to seek a contribution to costs for substantial requests, and allows either party to terminate the MoU on 30 days' written notice, with confidentiality obligations surviving termination indefinitely.

The MoU explicitly states that it is a statement of intent and does not create legally enforceable rights or obligations for either authority, nor does it modify existing BVI laws or regulatory requirements. It does not itself impose direct compliance duties on regulated entities, though it affects how information about them (including Designated Non-Financial Businesses and Professions and Non-Profit Organisations supervised by the Agency) may be shared between the two regulators.

Applies to

Designated Non-Financial Businesses and Professions (DNFBPs), Non-Profit Organisations, persons and entities supervised or regulated by the Commission or the Agency

Deadlines

• thirty (30) days' advance written notice: Notice period required for either authority to terminate the MoU
• 31 January 2024: Date the MoU was executed and took effect, upon signature by both authorities