Banks and Trust Companies (No. 2) Regulations (Revised 2020)

Summary

This regulation sets out the specific requirements for an affidavit that a non-licensee must submit when applying for the Commission's consent to use a restricted word (such as 'bank' or 'trust') in its name. It supplements regulation 6 of the Banks and Trust Companies Regulations, which governs applications for use of a restricted word by non-licensees.

• Who swears it: The affidavit must be sworn by a director or authorised officer of the applicant.
• Filing requirement: It must be submitted to the Commission together with the Application for Use of a Restricted Word by a Non-licensee.
• Ownership statement: The affidavit must state either that the applicant is wholly owned by a company or group of companies acting as trustee for unremunerated trusts, or that it is owned by family members acting as trustee for a family trust with no remuneration received.
• No banking or trust business: The affidavit must state that the applicant does not intend to carry on banking or trust business.
• Notification undertaking: The affidavit must state that the applicant will immediately inform its registered agent (if an International Business Company) or its BVI solicitors if it changes its intentions and decides to conduct trust business, and will then apply for the appropriate licence.
• Other information: The affidavit must include any other pertinent information.

In effect, this creates a documented compliance trail for non-licensed entities seeking to use restricted words, tying their continued use of such words to an ongoing commitment not to conduct unlicensed banking or trust business.

Key obligations

• An affidavit supporting an application by a non-licensee to use a restricted word must be sworn by a director or authorised officer of the applicant
• The affidavit must be submitted to the Commission together with the Application for Use of a Restricted Word by a Non-licensee under regulation 6
• The affidavit must include a statement of the name and title of the person swearing it
• The affidavit must include either an ownership/trustee statement for a corporate group trust arrangement or for a family trust arrangement, in each case confirming no remuneration is received by the applicant
• The affidavit must state that the applicant does not intend to carry on banking or trust business
• The applicant must undertake to immediately inform its registered agent (if an International Business Company) or its BVI solicitors if it changes its intentions to commence trust business, and to then apply for the appropriate licence
• The affidavit must include any other pertinent information

Applies to

non-licensees applying to use a restricted word, International Business Companies, banks, trust companies

Deadlines

• immediately: Applicant must inform its registered agent (if an IBC) or BVI solicitors immediately if it changes its intentions and desires to commence trust business