Anti-money Laundering (Amendment) Regulations, 2022

Summary

This instrument amends the Anti-money Laundering Regulations (Revised Edition 2020) made under the Proceeds of Criminal Conduct Act. It broadens the scope of AML-regulated 'relevant business' to expressly capture virtual assets service providers and other activities, tightens due diligence and reporting rules, and increases the maximum penalty for offences under the Regulations.

• Scope expansion: Extends 'relevant business' to cover category A/B insurance business and insurance intermediaries, trustees/protectors/administrators of trusts, gaming and betting where a cash payment is $3,000 or more, cooperative societies, and virtual assets service where a transaction involves virtual assets valued at $1,000 or more.
• New/revised definitions: Introduces or revises definitions of 'applicant for business', 'beneficial owner' (with explicit 10% ownership/control thresholds for bodies corporate and partnerships, and trust-specific criteria), 'control', 'money laundering' (now including terrorist financing and proliferation financing), 'virtual asset', 'virtual assets service' and 'VASP'.
• Simplified due diligence: Relevant persons may apply simplified due diligence measures in qualifying low-risk cases, but simplified measures cannot be used where a low-risk determination is inconsistent with national or other competent-authority risk assessments.
• Identity evidence thresholds: Sets thresholds below which identity evidence is not required for one-off transactions: under $15,000 generally, under $3,000 for gaming and betting, and under $1,000 for virtual assets service, with aggregation rules for linked transactions and an override where money laundering is known or suspected.
• Third-party reliance and high-risk countries: Relevant persons relying on introductions by third parties must have regard to risk information about the third party's country of incorporation, registration or operation, and must maintain AML policies and procedures adequate to mitigate risks from higher-risk countries.
• Record-keeping: Clarifies that AML record-keeping duties are without prejudice to separate record and documentation requirements under the BVI Business Companies Act and the Mutual Legal Assistance (Tax Matters) Act.
• Money Laundering Reporting Officer: Renames the 'Anti-money Laundering Reporting Officer' to 'Money Laundering Reporting Officer' and requires notification of each appointment within 14 days, to the Commission (if regulated by it) or otherwise to the Agency.
• Penalties: Increases the maximum fine on conviction for an offence under regulation 17(1) to $150,000.

Most amendments took effect on 22 August 2022, but the provisions relating to virtual assets service did not come into force until 1 December 2022, giving affected VASPs a short transition period before full application of the AML regime.

Key obligations

• Relevant persons must notify the Commission (if regulated by it) or the Agency (in other cases) in writing within 14 days of appointing a Money Laundering Reporting Officer, specifying the appointment date
• Persons carrying on relevant business must obtain evidence of identity for one-off transactions at or above $15,000 generally, $3,000 for gaming and betting, or $1,000 for virtual assets service (including aggregated linked transactions), unless below these thresholds and not linked to money laundering suspicion
• Relevant persons relying on third-party introductions must have regard to risk information concerning the country or territory where the third party is incorporated, registered or operating
• Relevant persons dealing with higher-risk countries or territories must maintain anti-money laundering policies and procedures adequate to mitigate the associated risks
• Providers of virtual assets service (VASPs) engaging in transactions of $1,000 or more in virtual assets must comply with the AML Regulations as relevant persons from 1 December 2022

Applies to

relevant persons under the Anti-money Laundering Regulations, insurance businesses and insurance intermediaries, trustees, protectors and administrators of trusts or settlements, gaming and betting operators, cooperative societies, virtual asset service providers (VASPs)

Deadlines

• 22 August 2022: General commencement date for most provisions of the Anti-money Laundering (Amendment) Regulations, 2022
• 1 December 2022: Commencement date for the provisions relating to providing virtual assets service
• within 14 days of appointment: Relevant person must notify the Commission or the Agency in writing of the appointment of a Money Laundering Reporting Officer, specifying the appointment date

Related documents

• This document is made under Proceeds of Criminal Conduct Act (Revised Edition 2020)