Beneficial Ownership Secure Search System (Amendment) Act, 2024 (No. 9 of 2024)

Summary

This Act amends the Beneficial Ownership Secure Search System Act, Revised Edition 2020, expanding the economic substance information that corporate and legal entities must report through the BOSS system and tightening rules on when and how BOSS searches are carried out and information disclosed. It applies to Virgin Islands corporate and legal entities carrying on relevant activities, registered agents acting as designated persons under the BOSS Act, and the government authorities that can request searches.

• Definition update: Section 2 is amended to redefine the beneficial ownership secure search system as the electronic platform providing access to prescribed information held in registered agent (RA) databases.
• Expanded economic substance reporting: Section 10(3)(i) is replaced with a much more detailed list of information that in-scope corporate and legal entities carrying on a relevant activity must report per financial period, including TIN, gross and total income, expenditure (generally and in the Virgin Islands), assets and net book values, employee numbers and details, core income generating activity, Virgin Islands premises, management and director details, and board meeting particulars.
• Holding business entities: Section 10(3)(k) is replaced to limit required information for holding business entities to certain subparagraphs and to require reporting on whether activities are active or passive, with different follow on disclosures for each (qualified employee and premises details for active activities; a statutory compliance statement for passive activities).
• Mandatory BOSS searches on request: Section 13(6) is replaced so that a designated person must execute a BOSS search when formally requested by a senior officer of the Financial Investigation Agency, the Financial Services Commission, the International Tax Authority, the Attorney General's Chambers, or the Governor's Office; for the latter two, senior officer means a public officer at salary scale 17 or above.
• Confidentiality of search results: A new section 13(11) requires that any information received by the listed authorities be treated as confidential and not disclosed to any other person or authority, except where required by legislation governing the requesting authority (or an international agreement it administers) or where disclosed to a designated law enforcement authority listed in Schedule 2.

The amendments to section 10 (the expanded reporting requirements) apply to all financial periods beginning on or after 1 January 2025; the other amendments (definition, section 13 changes) take effect on commencement of the Act.

Key obligations

• Corporate and legal entities carrying on a relevant activity (and not claiming non-resident exclusion) must report the expanded set of economic substance information under amended section 10(3)(i) for each financial period beginning on or after 1 January 2025.
• Corporate and legal entities carrying on holding business must report the limited information set under amended section 10(3)(k), including whether their activities are active or passive and the corresponding required particulars.
• A designated person must execute a search of the Beneficial Ownership Secure Search System when formally requested by a senior officer of the Financial Investigation Agency, the Financial Services Commission, the International Tax Authority, the Attorney General's Chambers, or the Governor's Office.
• Authorities that receive information from a BOSS search must keep it confidential and must not disclose it except as permitted under their governing legislation, an applicable international agreement, or disclosure to a designated law enforcement authority listed in Schedule 2.

Applies to

corporate and legal entities carrying on a relevant activity, non-resident companies, non-resident limited partnerships, designated persons (registered agents) under the BOSS Act, Financial Investigation Agency, Financial Services Commission, International Tax Authority, Attorney General's Chambers, Governor's Office

Deadlines

• financial periods beginning on or after 1 January 2025: The amended section 10 reporting requirements (expanded economic substance information to be provided via the BOSS system) apply from this point onward.

Related documents

• This document amends Beneficial Ownership Secure Search System Act (2020 Revised Edition)
• This document amends Beneficial Ownership Secure Search System Act (Revised Edition 2020)