Multilateral Memorandum of Understanding (May 2011)

Summary

This is a Multilateral Memorandum of Understanding (May 2011) among a group of Caribbean and regional financial regulators, including the BVI Financial Services Commission, establishing a framework for mutual cooperation, consultation, and exchange of information regarding financial institutions operating across their jurisdictions. It is an inter-regulator cooperation instrument, not a rule imposing direct compliance duties on private firms, and it expressly states it creates no binding legal obligations on the signatory Authorities.

• Scope: Covers enforcement of laws relating to financial institutions, fitness and propriety assessments of senior personnel, and other regulatory matters agreed among the Authorities.
• Information exchange: Sets procedures for written requests for assistance or information, execution of requests, and voluntary sharing of information among the signatory Authorities, subject to each Authority's own domestic laws.
• Inspection visits: Allows a Requesting Authority to conduct on-site inspections of financial institutions in another Authority's jurisdiction, subject to advance notice and confidentiality undertakings by inspection team members.
• Confidentiality and permissible use: Requires information shared under the Memorandum to be kept confidential and used only for the stated regulatory purpose, absent written consent for other uses.
• Denial, costs, and termination: Permits a Requested Authority to deny assistance in specified circumstances, to seek cost contributions for substantial investigations, and allows any Authority to terminate participation on notice.

Because this is an agreement between regulators rather than a rule directed at licensees, it does not itself create ongoing compliance duties for banks, trust companies, or other financial institutions. It is nonetheless relevant to compliance officers because it confirms that the BVI FSC may share supervisory information about regulated entities with counterpart regulators in the listed jurisdictions and may permit inspection visits by those regulators.

Applies to

Regional Regulatory Authorities (signatory financial regulators)

Deadlines

• within five (5) business days: Urgent requests for assistance or information communicated informally must be confirmed by an original signed document within five business days.
• at least 30 days written notice: A Requesting Authority must give at least 30 days' written notice before undertaking an inspection visit, absent exceptional circumstances.
• at least 30 days prior written notice: An Authority wishing to terminate its participation in the Memorandum must give at least 30 days' prior written notice to the other Authorities.