Financing and Money Services (Exemptions) Regulations (Revised 2020)

The Government of the Virgin Islands issued these Regulations to exempt certain foreign-incorporated companies from licensing requirements under the Financing and Money Services Act. The exemption permits these entities to provide credit to up to five Virgin Islands residents, provided the borrowers cannot secure loans from local banks and the financing amount does not exceed $1,000,000. Compliance requires borrowers to submit notarized affidavits to the Commission, and providing false information constitutes a criminal offense punishable by fines or imprisonment.

British Virgin Islands

British Virgin Islands Financial Services Commission

VIRGIN ISLANDS FINANCING AND MONEY SERVICES ACT Statutory Instruments Revised Edition showing the law as at 1 January 2020 This is a revised edition of the law, prepared by the Law Revision Commissioner under the authority of the Law Revision Act 2014. This edition contains a consolidation of the following laws— Page FINANCING AND MONEY SERVICES (EXEMPTIONS) REGULATIONS 3 S.I. 33/2015 .. in force 1 June 2015

Published in 2021 On the authority and on behalf of the Government of The Virgin Islands by The Regional Law Revision Centre Inc. For information contact— Attorney General’s Chambers Government of the Virgin Islands P.O. Box 242 Road Town Tortola, VG1110 British Virgin Islands Tel: (284) 468 - 2960 Email: agc@gov.vg Printed on the authority and on behalf of the Government of The Virgin Islands by The Regional Law Revision Centre Inc. P.O. Box 1626, 5 Mar Building, The Valley, AI-2640, Anguilla Authorised Printers for this Revised Edition

LAW OF VIRGIN ISLANDS Financing and Money Services (Exemptions) Regulations 3 Revision Date: 1 Jan 2020 [Statutory Instrument] FINANCING AND MONEY SERVICES (EXEMPTIONS) REGULATIONS – SECTIONS 5(2) AND 49(1) (S.I. 33/2015) Commencement [1 June 2015] Citation

These Regulations may be cited as the Financing and Money Services (Exemptions) Regulations. Exemption in relation to financing business
(1) Subject to sub-regulations (2) and (3), a company shall not be considered to be carrying on financing business and is therefore exempted from the requirement to be licensed by virtue of section 7(1) of the Financing and Money Services Act if the company— (a) is incorporated or registered in a jurisdiction outside the Virgin Islands; and (b) is not prohibited under the laws of the jurisdiction in which it is incorporated or registered from providing credit under financing agreements to borrowers resident outside that jurisdiction. (2) A company that is exempted from being licensed by virtue of sub- regulation (1) may provide credit under a financing agreement to a borrower resident in the Virgin Islands if— (a) the borrower is unable to secure a loan facility from a bank licensed to carry on business in the Virgin Islands; (b) the company intends to provide financing to the borrower in the Virgin Islands in an amount not exceeding $1,000,000; and (c) the company is from a recognised jurisdiction. (3) The total number of borrowers in the Virgin Islands to whom a company exempted under sub-regulation (1) may provide credit under a financing agreement shall not exceed 5. (4) For purposes of subregulation (2)— (a) a borrower may be treated as unable to secure a loan facility from a bank licensed to carry on business in the Virgin Islands if the borrower— (i) provides an affidavit notarized by a notary public registered in the Virgin Islands attesting to his or her inability to secure a loan facility and the reasons therefor; and (ii) lodges the affidavit with the Commission prior to entering into any financing agreement or receiving credit pursuant to a financing agreement, whichever comes first; and (b) the term “recognised jurisdiction” refers to a jurisdiction listed in Schedule 2 of the Anti-Money Laundering and Terrorist Financing Code

4 Financing and Money Services (Exemptions) Regulations [Statutory Instrument] Revision Date: 1 Jan 2020 LAW OF VIRGIN ISLANDS of Practice, provided that that jurisdiction regulates the activity of financing business. (5) Where an affidavit provided under sub-regulation (4)(a) is found to be inaccurate or false in any material particular, the person providing the affidavit commits an offence and is liable on conviction to a fine not exceeding $20,000 or to a term of imprisonment not exceeding 2 years.