What are the AML requirements for crypto businesses in the BVI?
AML regulations do not apply to ICO's as it is not defined within the Anti-Money Laundering Regulations 2008.
Role of the Financial Services Commission
The BVI Financial Services Commission (the “Commission”) is responsible for ensuring compliance with the Territory's AML/CFT systems and controls through supervision of regulated financial institutions in accordance with the Anti-Money Laundering Regulations, 2008 and the Anti-Money Laundering and Terrorist Financing Code of Practice, 2008. This responsibility includes monitoring licensees for compliance with:
- identification and verification procedures for new and continuing business relationships;
- record keeping requirements;
- third party relationships and the reliance thereon, including testing of such relationships;
- reporting of suspicious activities;
- internal control system requirements; and
- the identification and handling of PEPs and other high-risk individuals.
"The BVI's present anti-money laundering laws are codified in the form of the Proceeds of Criminal Conduct Act 1997, the Anti-Money Laundering Regulations 2008 and the Anti-Money Laundering and Terrorist Financing Code of Practice 2008 (together the AML Law)."
"The identification, record keeping and reporting obligations imposed by the AML Law are however only applicable to persons ("relevant persons") involved in certain types of regulated business ("relevant business"). ICOs of standard utility tokens would not be caught within the definition of relevant business for these purposes and therefore the BVI ICO Issuer involved is unlikely to be a "relevant person". Sponsors though should nevertheless be aware of the provisions of the AML Law and obligations thereunder should any aspect ever be brought to apply to a BVI ICO or BVI ICO Issuer – albeit that we are no aware of any intention to modify any aspect of the AML Law in this respect."