trust services

Who is caught

Trust services in the British Virgin Islands are anchored in the Banks and Trust Companies Act, which prohibits any company from carrying on trust business or company management business in or from the Virgin Islands without a valid licence from the Financial Services Commission. Separate statutes govern the conduct of trustees and particular trust structures, and further instruments regulate private trust companies and trust corporations.

Licensed trust business

• Trust and company management licensees: No company may carry on trust business, and no company may carry on company management business, in or from the Virgin Islands without a licence under the Banks and Trust Companies Act.
• Trust licence classes: Instruments refer to Class I to V trust licences and Restricted Class II and Restricted Class III trust licences, together with general and restricted banking licences under the Act.
• Expanded trust business definition: The 2023 and 2024 amendment Acts expand the definition of trust business, the 2024 Act extending it to performing the equivalent function for other forms of legal arrangement (once those amendments are brought into force).

Trustees and trust structures

• Trustees generally: The Trustee Act applies broadly to anyone acting as trustee, personal representative, protector, settlor or beneficiary under BVI trust law, and to trust companies administering trusts.
• VISTA trusts: The Virgin Islands Special Trusts Act applies to trustees (particularly designated trustees holding a trust licence, and qualifying private trust companies) holding shares in BVI business companies as designated shares.
• Trust corporations: The Trust Corporation (Probate and Administration) Act defines which companies qualify as trust corporations to act as executor or administrator, including companies meeting a capital test or holding a Class I trust licence.
• Private trust companies: Private trust companies are addressed by the Financial Services (Exemptions) Regulations and must be named ending with the designation (PTC) under the BVI Business Companies (Company Names) Regulations.
• Bare trustees: A company acting solely as a bare trustee is treated as within a defined category under the Financial Services (Exemptions) Regulations.

Sources: BVI Business Companies (Company Names) Regulations (Revised 2020) · Banks and Trust Companies Act (Revised Edition 2020) · Banks and Trust Companies (Amendment) Act, 2023 · Banks and Trust Companies (Amendment) Act, 2024 · Banks and Trust Companies (Non-negotiable Certificates of Indebtedness) Order (Revised 2020) · Financial Services (Exemptions) Regulations (Revised 2020) · Financial Services (Fees) Regulations (Revised 2020) · Financial Services (Prudential and Statistical Returns) (Amendment) Order, 2025 · Trust Corporation (Probate and Administration) Act (Revised 2020) · Trustee Act (Revised Edition 2020) · Virgin Islands Special Trusts Act (Revised 2020)

Key duties

The continuing obligations combine licensing, periodic filings with fixed deadlines, governance approvals, and record-keeping. The duties below lead with the recurring and dated filings, then set out the governance and record obligations.

Periodic filings and fees

• Annual return: Holders of Class I to V and Restricted Class II and III trust licences (and section 4(3) Company Management Act licensees) must file the Trust and Corporate Services Provider / Fiduciary Services Business Annual Return within one month after the end of each calendar year, on or before 31 January for the preceding year.
• Annual fees: Licensees under the Banks and Trust Companies Act must pay annual fees no later than 31 January each year; prescribed application, licence and renewal fees vary by licence class.
• Financial statements and audit: Licensees must keep financial records, prepare and submit financial statements to the Commission (including quarterly statements for some licensees), and appoint an approved auditor.

Licensing and governance

• Licensing: A licence is obtained by written application in the approved form; the Commission grants it only if satisfied as to fitness and propriety, adequate organisation, management and resources, capital and compliance, and public interest.
• Principal office and agents: A licensee must maintain a principal office in the Virgin Islands and two Virgin Islands resident authorised agents, and obtain the Commission's prior written approval before changing either.
• Director and senior officer approval: Appointment of a director or senior officer requires the prior written approval of the Commission; the 2023 amendment Act restates this requirement.
• Notification of changes: A licensee must notify the Commission within fourteen days of any change to the particulars given in its licence application.
• Audit report notification: Under the 2022 amendment Act, a licensee that receives a qualified audit report or one containing an emphasis of matter must forthwith notify the Commission.

Trustee record-keeping and beneficial ownership

• Trust records: Every trustee must keep records and underlying documentation sufficient to explain the trust's transactions and determine its financial position, wherever held, and retain them for at least five years.
• Beneficial ownership: The Trustee (Amendment) Act, 2024 requires Relevant Trustees to collect, verify, keep up to date and retain beneficial ownership information for each Applicable Trust, update it within thirty days of becoming aware of a change, retain it for at least five years after the trust terminates, and cooperate with competent authorities and law enforcement (once in force).
• AML trustee duties: Under the AML/CFT Code as amended, a trustee must disclose its trustee status to counterparties, obtain and maintain beneficial ownership information on the trust, keep it up to date, and retain it for at least five years after ceasing involvement.

Private trust company duties

• Registered agent: A private trust company must at all times have a registered agent holding a Class I trust licence, and must not carry on non-trust business, solicit trust business from the public, or exceed unremunerated or related trust business.
• Registered agent monitoring: The Class I trust licence holder acting as registered agent must check compliance before acting, review continued compliance on a risk basis, keep trust deeds and compliance documents at its Virgin Islands office, and immediately notify the Commission if it believes the private trust company is not complying.

Sources: Anti-Money Laundering and Terrorist Financing (Amendment) Code of Practice, 2023 · Banks and Trust Companies Act (Revised Edition 2020) · Banks and Trust Companies (Amendment) Act, 2022 · Banks and Trust Companies (Amendment) Act, 2023 · Banks and Trust Companies Regulations (Revised 2020) · Financial Services (Exemptions) Regulations (Revised 2020) · Financial Services (Fees) (Amendment) Regulations, 2023 · Financial Services (Fees) Regulations (Revised 2020) · Financial Services (Prudential and Statistical Returns) (Amendment) Order, 2021 · Financial Services (Prudential and Statistical Returns) (Amendment) Order, 2025 · Financial Services (Prudential and Statistical Returns) Order (Revised 2020) · Trustee (Amendment) Act, 2024

Exemptions and carve-outs

Several instruments carve out defined trust-related entities from licensing or specific requirements, generally subject to conditions that must be maintained to preserve the relief.

• Private trust companies: A private trust company is exempt from needing a trust licence where its business consists solely of unremunerated or related trust business, provided it keeps a Class I trust licensed registered agent and observes the business restrictions; loss of qualification requires it to amend its memorandum forthwith.
• Bare trustees: A company acting solely as a bare trustee is not required to obtain a trust licence under the Banks and Trust Companies Act.
• Restricted Class II/III applicants: Restricted Class II and III trust licence applicants are exempt from providing certain application particulars (such as details of officers, solicitors, auditors, subsidiaries and financial statements).
• Restricted Class II/III auditor: Restricted Class II and III trust licensees are exempt from the requirement to appoint an auditor under section 17G of the Act.
• Director/officer/nominee-only companies: A company providing only directors, officers and nominee shareholders is exempt from the company management licensing requirement, unless it is a subsidiary of a Class I, II or III trust licensee or undertakes other company management business.
• Audited financial statements: Dormant or otherwise qualifying licensees may apply to be exempted from preparing and submitting audited financial statements, subject to timing conditions.
• Compliance officer: Small trust and company management licensees meeting specified conditions may be exempt from appointing or seeking approval of a compliance officer, subject to a Form C declaration; others may apply discretionarily for a fee.
• Trust default rules: Most provisions of the Trustee Act and VISTA are enabling default rules that a trust instrument may vary or exclude, though the trustee record-keeping duty is mandatory.

Sources: Financial Services (Exemptions) Regulations (Revised 2020) · Financial Services (Miscellaneous Exemptions) (No.2) Regulations (Revised 2020) · Financial Services (Miscellaneous Exemptions) Regulations (Revised 2020) · Trustee Act (Revised Edition 2020) · Virgin Islands Special Trusts Act (Revised 2020)

Enforcement and penalties

Enforcement combines criminal offences under the primary statutes, administrative fines for filing failures, and administrative penalties under the AML regime.

• Unlicensed business: Carrying on unlicensed banking, trust or company management business, or contravening notification and other requirements, is a criminal offence carrying fines (up to $50,000 for unlicensed business) and/or imprisonment.
• Trust record-keeping (Trustee Act): A trustee who without lawful or reasonable excuse fails to keep the required trust records commits an offence, liable on summary conviction to a fine not exceeding one hundred thousand dollars or imprisonment for up to five years.
• Record-keeping (2021 amendment): The Trustee (Amendment) Act, 2021 makes failure to comply with the new section 92A record-keeping duty an offence punishable on summary conviction by a fine not exceeding ten thousand dollars.
• Beneficial ownership: Under the Trustee (Amendment) Act, 2024, a trustee who without reasonable excuse breaches the collection, verification, updating, retention or cooperation duties, or provides false or misleading information, commits an offence punishable by a fine of up to $75,000.
• Returns filing: The Prudential and Statistical Returns Order imposes administrative fines for filing failures, including from $400 for the first 30 days plus $100 per additional month for failure to file, $600 plus $100 per month for failure to file within an extension, $300 for failure to ensure accuracy, and $700 for failure to notify or correct inaccurate information.
• AML contraventions: The AML/CFT Code as amended treats trustee non-compliance as an offence and adds administrative fines (ranging from $70,000 to $100,000) for certain reporting and information failures relating to suspicious transactions and virtual asset transfers.

The Banks and Trust Companies Act also provides for appeals to the Financial Services Appeals Board against certain Commission decisions.

Sources: Anti-Money Laundering and Terrorist Financing (Amendment) Code of Practice, 2023 · Banks and Trust Companies Act (Revised Edition 2020) · Financial Services (Prudential and Statistical Returns) Order (Revised 2020) · Trustee Act (Revised Edition 2020) · Trustee (Amendment) Act, 2021 · Trustee (Amendment) Act, 2024