Compliance Period Extended under Schedule in Anti-Money Laundering Regulations, 2008 – Guidance Notes

Summary

This guidance from the BVI Financial Services Commission explains how relevant persons under the Anti-Money Laundering Regulations, 2008 (AMLR) can apply for an extension of the deadline to collect and maintain beneficial ownership information on BVI Business Companies. It sets out the compliance timeline introduced by the 2015 AMLR and AMLTFCOP amendments (effective 1 January 2016) and the criteria, thresholds and application process for obtaining extra time beyond the 31 December 2016 compliance deadline.

• Baseline compliance timeline: For companies incorporated on or after 1 January 2016, beneficial ownership information must be collected and maintained at or before incorporation; for companies incorporated earlier, it must be collected and maintained within a transition period ending 31 December 2016.
• Extension grounds: The Commission may grant an extension if a relevant person shows sufficient progress (via the 50% or 75% thresholds), if the volume of applicants/customers makes full compliance impracticable in time, or if other relevant factors justify it.
• 50% threshold route: Must show at least 50% of applicants for business/customers have beneficial ownership information obtained by 31 July 2016, with a written extension application submitted no later than 31 August 2016.
• 75% threshold route: Must show at least 75% of applicants for business/customers have beneficial ownership information obtained by 31 October 2016, with a written extension application submitted no later than 30 November 2016.
• Other relevant factors route: Applications relying on other relevant factors must be submitted by 30 November 2016 and will not be considered before 1 November 2016; the applicant bears the onus of evidencing these factors.
• Form requirements: Applications must use the approved form in the Appendix, include specified data on active and struck-off companies, and be attested by a director or the registered agent.
• Extension length and review: Any extension granted will run up to but not necessarily 6 months beyond 31 December 2016 (i.e. as far as June 2017), and the Commission will review overall compliance, including extended timelines, during 2017.

Late applications received after the stated deadlines will not likely be considered, and there is no further extension to the application submission windows themselves.

Key obligations

• Relevant persons must collect and maintain beneficial ownership information at or before incorporation/registration for BVI Business Companies incorporated on or after 1 January 2016.
• Relevant persons must collect and maintain beneficial ownership information for pre-existing companies within the transition period ending 31 December 2016, unless an extension is granted.
• To rely on the 50% threshold for an extension, a relevant person must demonstrate at least 50% of applicants for business/customers have beneficial ownership information obtained by 31 July 2016 and submit a written extension application by 31 August 2016.
• To rely on the 75% threshold for an extension, a relevant person must demonstrate at least 75% of applicants for business/customers have beneficial ownership information obtained by 31 October 2016 and submit a written extension application by 30 November 2016.
• An extension application founded on other relevant factors must be submitted by 30 November 2016 and must specify and provide evidence of those factors.
• Extension applications must be made in the approved form set out in the Appendix and duly attested by a director or the registered agent of the relevant person.

Applies to

relevant persons (licensed and unlicensed entities engaged in relevant business under regulation 2(1) of the AMLR), BVI Business Companies, registered agents

Deadlines

• 1st January, 2016: 2015 amendments to the AMLR and AMLTFCOP take effect; beneficial ownership collection obligation begins for newly incorporated/registered companies.
• 31st December, 2016: End of the 12 month transition period for companies incorporated before 1 January 2016 to collect and maintain beneficial ownership information, absent an extension.
• 31st July, 2016: Deadline by which a relevant person must have obtained beneficial ownership information for at least 50% of applicants for business/customers to qualify for extension under the 50% threshold.
• 31st August, 2016: Deadline to submit a written extension application relying on the 50% threshold.
• 31st October, 2016: Deadline by which a relevant person must have obtained beneficial ownership information for at least 75% of applicants for business/customers to qualify for extension under the 75% threshold.
• 30th November, 2016: Deadline to submit a written extension application relying on the 75% threshold or on other relevant factors.
• 1st November, 2016: Earliest date on which an extension application based on other relevant factors will be considered or processed.
• up to 6 months after 31st December, 2016 (ending in June 2017): Maximum length of any extension the Commission may grant to the compliance period.
• during 2017: Period during which the Commission will conduct a review of compliance with beneficial ownership collection obligations, including extended timelines.