Regulatory Alerts2024-09-26
Insolvency (Amendment) Act, 2024
The Legislature of the Virgin Islands enacted the Insolvency (Amendment) Act, 2024, to expand the Commission's powers to apply for the appointment of a liquidator under the Insolvency Act, Revised Edition 2020. The legislation amends sections 162 and 163 to include new grounds for liquidation applications, specifically targeting entities involved in money laundering, terrorist financing, proliferation financing, or breaches of sanctions and embargoes. These amendments also incorporate definitions for financial crime terms from the Financial Investigation Agency Act and allow the Commission to act against activities deemed contrary to the public interest or the financial services industry's best interests.
No. 18 of 2024 VIRGIN ISLANDS INSOLVENCY (AMENDMENT) ACT, 2024 ARRANGEMENT OF SECTIONS SECTION
- Short title and commencement
- Section 162 amended
- Section 163 amended
2 No. 18 of 2024 Insolvency (Amendment) Act, 2024 Virgin Islands I ASSENT Daniel Pruce Governor. 23rd September, 2024 VIRGIN ISLANDS No. 18 of 2024 AN ACT TO AMEND THE INSOLVENCY ACT, REVISED EDITION 2020, TO EXPAND THE COMMISSION'S POWERS TO MAKE AN APPLICATION TO APPOINT A LIQUIDATOR AND FOR MATTERS CONNECTED THEREWITH. [Gazetted 26th September, 2024] ENACTED by the Legislature of the Virgin Islands as follows: Short title and commencement
- (1) This Act may be cited as the as the Insolvency (Amendment) Act, 2024. (2) This Act shall come into force on such date as the Minister may, by Notice published in the Gazette, appoint. Section 162 amended
- The Insolvency Act, Revised Edition 2020, (hereinafter referred to as the “principal Act”) is amended in section 162 (a) by repealing subsection (5) and substituting the following subsection: “(5) The Commission may only make an application to appoint a liquidator under subsection (1)(c) if the company concerned (a) is, or at any time has been, a regulated person; (b) is carrying on, or at any time has carried on, unlicensed financial services business;
3 (c) is, or at any time has been, involved in or convicted for an offence relating to money laundering, terrorist financing or proliferation financing; (d) breaches or contravenes any enactment relating to sanctions or embargoes; or (e) is otherwise engaged in an activity which the Commission considers not to be in the best interest of the Territory’s financial services industry or generally in the public interest.”; and (b) by inserting after subsection (9), the following new subsection: “(10) The reference to money laundering, terrorist financing and proliferation financing in subsection (5)(c) bears the same meanings attributed to those terms in section 2(1) of the Financial Investigation Agency Act, Revised Edition 2020.”. Section 163 amended 3. The principal Act is amended in section 163 (a) in subsection (1) (i) by deleting the word “or” at the end of paragraph (e); (ii) by deleting the full-stop at the end of paragraph (f) and substituting it with “; or”; and (iii) by inserting after paragraph (f), the following new paragraphs: “(g)is, or at any time has been, involved in or convicted for an offence relating to money laundering, terrorist financing or proliferation financing; (h) breaches or contravenes any enactment relating to sanctions or embargoes; or (i) is otherwise engaged in an activity which the Commission considers not to be in the best interest of the Territory’s financial services industry or generally in the public interest.”; and (b) by inserting after subsection (5), the following new subsection: “(6) The reference to money laundering, terrorist financing and proliferation financing in subsection (1)(g) bears the same meanings attributed to those terms in section 2(1) of the Financial Investigation Agency Act, Revised Edition 2020.”.
4 Passed by the House of Assembly this 5 th day of September, 2024. (Sgd.) Corine N. George-Massicote, Speaker. (Sgd.) Bethsaida Smith-Hanley, Clerk of the House of Assembly.