Statement of Cooperation between the BVI and United States Bank Regulators

Summary

This is a Statement of Cooperation (an inter-regulator memorandum of understanding) between the British Virgin Islands Financial Services Commission and four US federal bank regulators (the Federal Reserve Board, OCC, FDIC and the former Office of Thrift Supervision). It establishes a framework for these authorities to share supervisory information and cooperate in overseeing banks and banking organizations that have cross-border establishments (branches, subsidiaries or affiliates) in each other's jurisdiction. It does not create direct compliance filing requirements for banks themselves, but sets out how regulators will exchange information, coordinate inspections and handle confidentiality regarding those banks' cross-border operations.

• Authorisation process: Authorities will notify each other of applications to establish cross-border establishments and share information on compliance status and management capability of applicants, upon request.
• Ongoing supervision: Authorities will exchange information on material developments, regulatory changes, threats to stability, and administrative penalties or enforcement actions affecting cross-border establishments.
• On-site inspections: Home supervisors will notify host supervisors before inspecting a cross-border establishment, and inspections may be conducted independently or jointly, with results shared afterward.
• Financial crime cooperation: Authorities will cooperate and share information, including customer-related information where relevant, on suspected money laundering, terrorist financing and unauthorised banking activity.
• Confidentiality: Information received from another Authority must be used only for lawful supervisory purposes and kept confidential, with prior consent generally required before onward disclosure to third parties.
• Termination and duration: The Statement takes effect on the date signed and continues indefinitely unless modified by mutual consent or terminated by any Authority giving 30 days notice; confidentiality obligations survive termination.

Compliance officers at BVI-licensed banks with US operations (or US banks with BVI operations) should be aware that this arrangement permits their home and host regulators to share supervisory findings, examination information and enforcement details about their cross-border establishments, and to coordinate joint or independent inspections.

Key obligations

• Authorities must notify the appropriate home supervisor without delay of applications to establish cross-border establishments by banks from the other jurisdiction
• Authorities must respond to requests for information on their regulatory systems and inform each other of major regulatory changes affecting cross-border establishments
• Authorities must inform the appropriate Authority in the other jurisdiction of administrative penalties or formal enforcement actions taken against a cross-border establishment or its parent bank where relevant
• Home supervisors must notify host supervisors of plans to inspect a cross-border establishment, including purpose and scope, before conducting the inspection
• Authorities must request and obtain prior consent from the originating Authority before disclosing confidential information received under the Statement to a third party, and endeavour to respond to such requests within 20 days
• Any Authority terminating the Statement must give 30 days advance notice to the other Authorities, and confidentiality obligations continue to apply to information shared before termination

Applies to

banks, banking organizations, cross-border establishments (branches, subsidiaries and affiliates of banks)

Deadlines

• 20 days: Each Authority will endeavor to respond to a request to disclose confidential information to a third party within twenty (20) days
• 30 days advance notice: Any Authority may terminate the Statement by giving 30 days advance notice to the other Authorities