DNFBPs

Who is caught

The instruments indexed here apply to designated non-financial businesses and professions (DNFBPs) within the British Virgin Islands AML/CFT/CPF framework, alongside financial institutions. DNFBPs are supervised by the Financial Investigation Agency (FIA), while financial institutions are supervised by the Financial Services Commission (FSC). What brings a person within scope is carrying on relevant business or a designated non-financial activity in or from the Virgin Islands.

Businesses and professions caught

• Relevant business: Under the Anti-Money Laundering Regulations (Revised 2020), persons carrying on relevant business, including banking and trust business, insurance business, company management, investment business, mutual funds and private investment funds, trust or company service providers, money services and remittance business, legal practitioners, notaries and accountants doing specified client work, real estate agents, dealers in precious metals or stones, and casino operators above stated cash thresholds.
• DNFBP sectors: Joint FSC/FIA guidance identifies DNFBPs as legal practitioners, notaries, accountants, real estate agents, dealers in precious metals and stones, high value goods dealers, vehicle dealers, boat dealers, and gaming or betting businesses meeting stated thresholds.
• Registration trigger: The Financial Investigation Agency (Amendment) Act, 2024 provides that no person may carry on business as a DNFBP in or from the Virgin Islands without being registered with the Agency.
• Code of Practice: The AML and Terrorist Financing Code of Practice (Revised 2020) applies to all entities and professionals conducting relevant business, designated non-financial businesses, and, to a limited extent, charities and other non-profit associations.
• Proliferation financing: The Proliferation Financing (Prohibition) (Amendment) Act, 2024 applies to any person subject to the Proliferation Financing (Prohibition) Act, including financial institutions and DNFBPs, who deal in assets or have reporting obligations.

Sources: An Effective Approach to Ongoing Monitoring · Guidelines on Institutional Risk Assessments · Beneficial Ownership Obligations Under the AML Regime · Effective Enhanced Customer Due Diligence Measures · Mitigating Risks with Introduced Business Relationships · 2022 Thematic Inspection Programme · The Sanctions (Overseas Territories) (Amendment of Information Provisions) Order 2018 (SI 2018/1076) · Anti-Money Laundering and Terrorist Financing Code of Practice (Revised 2020) · Anti-Money Laundering Regulations (Revised 2020) · Financial Investigation Agency (Amendment) Act, 2021 (No. 34 of 2021) · Financial Investigation Agency (Amendment) Act, 2024

Key duties

DNFBPs and other relevant persons face registration, governance, customer due diligence, record-keeping and reporting obligations. Several instruments carry specific deadlines, noted below. Many of the amending Acts commence on a date to be fixed by Proclamation or Ministerial notice, which the source texts do not state.

Registration and change of control

• Registration: Under the Financial Investigation Agency (Amendment) Act, 2024, a person must not carry on business as a DNFBP without being registered with the Agency.
• Change of control approval: DNFBPs and supervised NPOs must obtain the Agency's prior written approval before changing directors, senior officers, or persons with significant or controlling interests, and must notify the Agency within fourteen days after such a change.
• Returns: DNFBPs and NPOs under supervision may be required by Gazette Order to submit returns on directors, senior officers, controllers, risk assessments and other business matters in the prescribed form and timeframe, and must ensure the returns are accurate and complete.

Governance and MLRO

• Money Laundering Reporting Officer: Under the Anti-Money Laundering Regulations, relevant persons must appoint a Money Laundering Reporting Officer. The Anti-money Laundering (Amendment) Regulations, 2024 require prior approval of the MLRO from the FIA (for DNFBPs and certain NPOs it supervises) or the FSC (for persons it regulates), with the MLRO meeting minimum qualification, fit and proper, knowledge and independence requirements.
• MLRO replacement deadlines: Where an MLRO ceases to hold office, the relevant person must notify the FIA or FSC within 14 days and submit an application to appoint a replacement within 21 days.
• Internal controls and risk assessment: The AML/CFT Code of Practice requires an internal control system, a documented risk assessment, appointment of a Reporting Officer, and staff training and vetting. Joint FSC/FIA guidance ties the institutional risk assessment to Section 12 of the Code, requiring Board and senior management approval, a Risk Tolerance Statement, and review at least annually.

Customer due diligence and monitoring

• Identification and verification: Relevant persons must establish identification procedures for applicants for business and verification procedures for ongoing transactions, and must not proceed until satisfactory evidence of identity is obtained.
• Enhanced due diligence: Licensees must conduct enhanced customer due diligence for higher-risk customers, including PEPs, complex or unusual transactions, high-risk country links and non-face-to-face relationships, and obtain senior management approval for higher-risk relationships.
• Beneficial ownership: Licensees must identify, verify and maintain adequate, accurate and up-to-date beneficial ownership information, and provide it promptly to the FSC, FIA or other competent authorities on request.
• Ongoing monitoring: Licensees must monitor customers and transactions throughout the relationship, examine and record findings on flagged transactions, and file internal suspicious activity reports with the MLRO.
• Introduced business: Where relying on a third-party Introducer, licensees must satisfy themselves the Introducer has carried out required due diligence, immediately obtain customer, beneficial ownership and relationship-purpose information, and test the relationship on an ongoing basis.

Record-keeping and reporting

• Records: Relevant persons must keep records of identity verification, transactions and reports for the retention period specified, and maintain a register of money laundering reports and inquiries.
• Suspicious activity reporting: Licensees must file Suspicious Activity Reports with the Financial Investigation Agency where suspicion is identified.
• Production of documents: Under the Financial Investigation Agency (Amendment) Act, 2021, financial institutions, DNFBPs, NPOs and other persons required to produce documents or information must do so within five working days of the Agency's request, subject to legal professional privilege; any extension cannot exceed five working days.
• Duty to cooperate: Under the Financial Investigation Agency (Amendment) Act, 2024, financial institutions, DNFBPs, NPOs and other persons subject to the Act must cooperate with the Agency, including providing requested information and documents, and must not provide false or misleading information.
• Proliferation financing reporting: Under the Proliferation Financing (Prohibition) (Amendment) Act, 2024, a person who becomes aware of a dealing, attempted dealing or making available of an asset while complying with sections 15 or 16 must report to the Agency; the prior $10,000 threshold has been removed, so reporting applies to transactions of any value.
• Sanctions disclosure: Under the Sanctions (Overseas Territories) (Amendment of Information Provisions) Order 2018, listed DNFBPs must disclose knowledge or suspicion that a customer is subject to an asset freeze or has committed an offence under the relevant sanctions regime. Note that this Order is stated to extend to the Overseas Territories including the Cayman Islands.

Sources: An Effective Approach to Ongoing Monitoring · Guidelines on Institutional Risk Assessments · Beneficial Ownership Obligations Under the AML Regime · Effective Enhanced Customer Due Diligence Measures · Mitigating Risks with Introduced Business Relationships · The Sanctions (Overseas Territories) (Amendment of Information Provisions) Order 2018 (SI 2018/1076) · Anti-money Laundering (Amendment) Regulations, 2024 (SI No. 43 of 2024) · Anti-Money Laundering and Terrorist Financing Code of Practice (Revised 2020) · Anti-Money Laundering Regulations (Revised 2020) · Proliferation Financing (Prohibition) (Amendment) Act, 2024 · Financial Investigation Agency (Amendment) Act, 2021 (No. 34 of 2021) · Financial Investigation Agency (Amendment) Act, 2024

Exemptions and carve-outs

The instruments indexed here provide limited carve-outs rather than broad sectoral exemptions.

• Legal professional privilege: Under the Financial Investigation Agency (Amendment) Act, 2021, the duty to produce documents or information to the Agency is subject to legal professional privilege.
• Cash thresholds: Under the Anti-Money Laundering Regulations, dealers in precious metals or stones and casinos are covered only above stated cash thresholds, and certain gaming or betting businesses only where stated thresholds are met.
• Non-binding guidance: The FATF Guidance on Digital Identity is expressly described as non-binding, clarifying existing FATF Standards rather than creating enforceable obligations or deadlines for BVI-regulated entities.
• Proliferation financing exemption removed: The Proliferation Financing (Prohibition) (Amendment) Act, 2024 deletes section 38(1)(b), removing that paragraph's exemption from the principal Act.

Sources: FATF Guidance on Digital Identity (March 2020) · Anti-Money Laundering Regulations (Revised 2020) · Proliferation Financing (Prohibition) (Amendment) Act, 2024 · Financial Investigation Agency (Amendment) Act, 2021 (No. 34 of 2021)

Enforcement and penalties

Enforcement powers are split between the Financial Investigation Agency and the Financial Services Commission, and the Code of Practice sets a schedule of administrative penalties. The FSC's published enforcement notices are recorded outcomes against named entities, not rules of general application.

FIA enforcement powers

• Production and freeze offences: Under the Financial Investigation Agency (Amendment) Act, 2021, failure to comply with a freeze order or a document or information production request is an offence, punishable on summary conviction by a fine of up to twenty thousand dollars or imprisonment of up to two years, or both.
• Failure to cooperate: Under the Financial Investigation Agency (Amendment) Act, 2024, failure to cooperate with the Agency is an offence punishable by a fine not exceeding twenty thousand dollars. Unregistered operation as a DNFBP is an offence and grounds for enforcement action, including public statements naming the person.
• Deregistration and licence action: The Financial Investigation Agency (Amendment) Act, 2024 empowers the Agency to deregister DNFBPs, direct licensing bodies to cancel or suspend licences (suspension up to 30 days, extendable by a further 30 days in the public interest), require payment of enforcement costs, and issue public statements about enforcement action (generally with three days' notice, unless urgency justifies shorter or no notice).
• Returns penalties: Non-compliance with a returns Gazette Order under section 5R attracts administrative penalties prescribed in the Order.

Code of Practice penalties

• Administrative fines: The AML and Terrorist Financing Code of Practice (Revised 2020) sets out administrative fines in Schedule 4, described as ranging roughly from $50,000 to $75,000 depending on the breach, applicable to corporate bodies and individuals for specific failures.
• AML Regulations offence: Under the Anti-Money Laundering Regulations, breach is an offence subject to penalties under regulation 17.
• Combined exposure: Joint FSC/FIA guidance notes that failure to comply with beneficial ownership obligations may result in administrative penalties under Schedule 4 of the Code, fines under the FSC Act, and/or imprisonment under the Proceeds of Criminal Conduct Act.

Published enforcement outcomes

• Basis of penalties: The FSC's published enforcement notices, predominantly against trust and corporate services providers, record administrative penalties for breaches of the AML and Terrorist Financing Code of Practice, 2008, most commonly relating to customer due diligence (section 19), enhanced due diligence (section 20), keeping CDD up to date (section 21), introducer oversight (section 31), risk assessment (section 12) and internal controls (section 11).
• Statutory basis in one case: In one notice, a $10,000 penalty was imposed under section 56(1) of the Financial Services Commission Act, 2001 for failure to comply with Regulation 7 of the Anti-Money Laundering Regulations, 2008.
• Penalty range in indexed notices: Recorded amounts range from $2,000 up to $205,500, with examples including $10,000, $15,000, $20,000, $20,500, $25,000, $100,000, $120,000, $125,000 and $175,000.

Sources: Beneficial Ownership Obligations Under the AML Regime · Administrative Penalties to the total of $125,000 - ALEMAN, CORDERO, GALINDO & LEE TRUST (BVI) LIMITED (2025-11-21) · Administrative Penalties $120,000 - TMF (B.V.I.) LTD. (2023-09-18) · Administrative Penalty $20,000.00 - MCNAMARA CORPORATE SERVICES LIMITED (2022-01-14) · Administrative Penalties $20,000.00 - EAST ASIA CORPORATE SERVICES (B.V.I.) LIMITED (2017-07-04) · Administrative Penalty $10,000.00 - ARAMO CORPORATE SERVICES INC. (2017-03-17) · Administrative Penalty $15,000.00 - JTC (BVI) Limited (2015-12-15) · Administrative Penalty $20,000.00 - Osiris International Trustees Limited (2015-12-06) · Administrative Penalty $15,000.00 - CCS Trustees Limited (2015-11-30) · Administrative Penalty $25,000.00 - ILS Fiduciary (BVI) Limited (2015-11-30) · Administrative Penalty $20,000.00 - MCNAMARA CORPORATE SERVICES LIMITED (2015-11-30) · Administrative Penalty $25,000.00 - QUIJANO & ASSOCIATES (BVI) LIMITED (2015-11-30) · Administrative Penalty $20,000.00 - Fidelity Corporate Services Ltd. (2015-10-28) · Administrative Penalty $10,000.00 - Sucre & Sucre Trust Limited (2015-10-28) · Administrative Penalty $25,000.00 - Lotus Corporate Services Ltd. (2015-10-20) · Administrative Penalty $15,000.00 - Intertrust Corporate Services (BVI) Limited (2015-08-26) · Administrative Penalty $10,000.00 - COVERDALE TRUST SERVICES LIMITED (2015-08-21) · Administrative Penalty $20,000.00 - PATTON, MORENO AND ASVAT (BVI) LIMITED (2015-04-09) · Administrative Penalty $25,000.00 - Newhaven Corporate Services (B.V.I.) Limited (2015-02-24) · Administrative Penalty $20,000.00 - Arias Fabrega & Fabrega Trust Co. BVI Limited (2015-02-13) · Administrative Penalty $20,000.00 - Arias Fabrega & Fabrega Trust Co. BVI Limited (2015-01-13) · Administrative Penalty $205,500.00 - Portcullis TrustNet (BVI) Limited (2013-10-14) · Administrative Penalty $2,000.00 - Abacus Trust and Management Services Limited (2013-09-27) · Administrative Penalty $100,000.00 - Commonwealth Trust Limited (2013-09-26) · Administrative Penalty $175,000.00 - ABM Corporate Services Ltd. (2013-05-13) · Administrative Penalty $20,500.00 - Mossack Fonseca & Co. (BVI) Ltd. (2012-12-10) · Anti-Money Laundering and Terrorist Financing Code of Practice (Revised 2020) · Anti-Money Laundering Regulations (Revised 2020) · Financial Investigation Agency (Amendment) Act, 2021 (No. 34 of 2021) · Financial Investigation Agency (Amendment) Act, 2024