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BVI International Finance Centre
As a financial centre of major importance to the global financial system, the BVI has always set the highest standards of transparency, regulation, collaboration, enforcement and cooperation.
This was underlined in December 2008 by the Caribbean Financial Action Task Force (CFATF), which published a Mutual Evaluation Report following an in-depth investigation by an independent assessment team of experts in criminal law, law enforcement and regulatory issues. The CFATF team examined the capacity, implementation and effectiveness of the BVI's institutional framework, laws, regulations and systems. The concluding report states that the BVI has "maintained a robust public policy commitment to ensuring that the Territory plays its part in the global fight against money laundering and the financing of terrorism." The CFATF further noted that successive BVI governments "have promoted policies to ensure that the jurisdiction can play its part to effectively combat cross-border financial crimes, maintain a reputation for being a clean jurisdiction and where it is found that the jurisdiction has been used by criminals, to fully cooperate with the international community."
The enforcement of robust and fair laws by the BVI's legal system continues to attract high-quality business to the Territory — with many of the world's leading law firms and accounting firms, as well as a number of fund administrators, investment managers, licenced professional trustees, company managers and insurance managers all having established a presence in the Territory. High-profile prosecutions such as that of the Bermuda-based mutual fund IPOC, the establishment of the Financial Investigations Agency and the BVI's own independent financial regulator (the FSC) ensure that the Territory continues to uphold its commitment to effective enforcement. The BVI is also currently establishing a commercial court, which will result in the Territory becoming the headquarters for commercial cases of the Eastern Caribbean Supreme Court.
The BVI's legal and judicial system is based on English common law principles, with ultimate appeal to the Privy Council. The Territory follows the principle that good business is built on honesty and integrity, and therefore does not have, and has never had, secrecy laws for financial services. It has no legislation that institutionalises secrecy in any part of the regulatory process. The BVI subscribes to the common law principle of confidentiality, whilst having in place avenues for accessing information for regulatory and law enforcement purposes, including rendering assistance to foreign regulatory and law enforcement authorities.
The BVI will continue to meet international standards set by the OECD, EU and others and uphold the importance of international finance centres as integral parts of a stable and successful global financial services industry. The BVI promotes the strength and growth of the island's own private sector as vital to its economy and will continually work to maintain the ideal state of robust regulation which concurrently supports and fosters healthy business.
The Role of the BVI IFC
The BVI International Finance Centre (BVI IFC) has played a pivotal role in the promotion and marketing of the BVI as a leading financial centre. Established in 2002 as part of the government's growing commitment to the financial services industry, the aim of the IFC is to give a voice to the BVI's financial sector. The IFC works to support and promote the following key sectors and renowned areas of expertise within the BVI:
Business Companies: The BVI Business Companies Act 2004 (the "Act") has received positive reviews for its flexibility from legal practitioners around the world. Five different types of companies can be incorporated under the Act. In particular, many investors welcomed the introduction of segregated portfolio companies (SPCs), as these allow umbrella funds to be set up with limited liability between share classes (which was not permitted under the former regime), thus avoiding potential cross-class liability issues. The Act also includes statutory merger and consolidation provisions, which make it possible for two entities (only one of which need be a BVI entity provided certain conditions exist) to merge, with all the assets of both entities consolidated into the surviving entity. This has made the BVI more attractive for joint venture vehicles and for the restructuring of companies and funds. BVI companies can also list on worldwide stock exchanges including LSE, AIM, NYSE, NASDAQ, ISE, TSX and BOVESPA.
Mutual Fund Registration, Management and Administration: The BVI Mutual Funds Act 1996 allows for three categories of funds (professional, private and public) to be established, whilst providing for investor protection commensurate with their level of sophistication. There are currently no regulatory restrictions on investment policies in the BVI. The mutual funds legislation is not complex and, as a result, funds can be established in the BVI by using simple and cost-effective structures. Professional funds can receive fast-track approval from the BVI Financial Services Commission (FSC) from within three to five days of submission of an application for recognition. Most fund entities are structured as limited liability companies — although partnership structures are also being formed, especially where the client has a limited partnership onshore and is seeking to mirror the structure offshore.
The BVI is now also a member of the International Organisation of Securities Commissions (IOSCO), further enhancing its attractiveness, particularly to clients from emerging market jurisdictions. There is no requirement in the BVI for service providers of a BVI fund such as the manager, administrator or custodian to be resident in the BVI. However, several international service providers are present in the BVI to provide services locally.
Captive Insurance Management: The British Virgin Islands has developed into a major international insurance centre in recent years. The growth in stature for the BVI as an international captive insurance jurisdiction has also been aided by the strong presence of complementary service providers such as internationally renowned law firms and accountancy practices.
Trusts and Private Wealth Management: Private Trust Companies (PTCs) have become increasingly popular in Offshore Financial Centres (OFCs) in recent times, and the BVI enacted special provisions for PTCs in January 2007 that further enhance its world-renowned trusts and estate-planning products.
In addition, the coming into force of the Virgin Islands Special Trusts Act 2003 (VISTA) and the BVI's Trustee Act 2003 (the Amendment Act) on 1 March 2004 were significant developments for the sector and jurisdiction alike.
Both VISTA and the Trustee Amendment Act were based on proposals that were made to the BVI government by the BVI branch of the Society of Trust and Estate Practitioners (STEP), demonstrating the effectiveness of a close collaboration between government and the private sector that results in the development of the industry in ways that respond to the needs of the jurisdiction's international client base.
Shipping Services: The BVI is an acknowledged Category 1 Red Ensign register — which means that the jurisdiction is one of only 10 centres around the world where mega and super yachts of up to 3,000 gross tonnage and general cargo ships of unlimited tonnage can be registered. The BVI Shipping Registry offers the highest practical standards in technical expertise, safety management and quality assurance, compatible with the Red Ensign Group (REG), to ensure first-class services. Services include registration of ships, mortgages, discharge of mortgages, change/transfer of ownership and full corporate, legal, telecommunications and courier services. Ships flying the BVI Red Ensign flag are British ships and are entitled to British diplomatic and consular support and Royal Navy protection. The BVI has access to the range of technical expertise of the U.K. Maritime and Coastguard Agency.
Accounting and Legal Services: The world's foremost accountancy firms all have a presence in the BVI, and there are clear signs of a growing demand for their services, particularly in the areas of mutual funds audit and insolvency practice. In addition, legal services are growing on the islands with the recent influx of several prominent law firms, including the international law firm Withers in 2009, which chose the BVI as the location for its first foray into the offshore legal sphere. BVI lawyers are widely respected throughout the financial services sector, and several BVI firms have opened offices in London and Hong Kong, all of which work closely with their BVI offices.
Globally Integrated and Responsible Financial Services
The BVI therefore strikes the right balance between regulation, high standards of service and the quality of its people. The reputation of the BVI has extended across the world, and many developing markets like China, India and Brazil have come to realise the advantage of doing business in the BVI.
The BVI International Finance Centre
Government of the British Virgin Islands
Haycraft Building, 1 Pasea Estate
Road Town, Tortola
Tel: 468-4335
Fax: 468-1002; 494-1260
Website: www.bviifc.gov.vg
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As a financial centre of major importance to the global financial system, the BVI has always set the highest standards of transparency, regulation, collaboration, enforcement and cooperation. 
The BVI's legal and judicial system is based on English common law principles, with ultimate appeal to the Privy Council. The Territory follows the principle that good business is built on honesty and integrity, and therefore does not have, and has never had, secrecy laws for financial services. It has no legislation that institutionalises secrecy in any part of the regulatory process. The BVI subscribes to the common law principle of confidentiality, whilst having in place avenues for accessing information for regulatory and law enforcement purposes, including rendering assistance to foreign regulatory and law enforcement authorities. 
Business Companies: The BVI Business Companies Act 2004 (the "Act") has received positive reviews for its flexibility from legal practitioners around the world. Five different types of companies can be incorporated under the Act. In particular, many investors welcomed the introduction of segregated portfolio companies (SPCs), as these allow umbrella funds to be set up with limited liability between share classes (which was not permitted under the former regime), thus avoiding potential cross-class liability issues. The Act also includes statutory merger and consolidation provisions, which make it possible for two entities (only one of which need be a BVI entity provided certain conditions exist) to merge, with all the assets of both entities consolidated into the surviving entity. This has made the BVI more attractive for joint venture vehicles and for the restructuring of companies and funds. BVI companies can also list on worldwide stock exchanges including LSE, AIM, NYSE, NASDAQ, ISE, TSX and BOVESPA. 
Trusts and Private Wealth Management: Private Trust Companies (PTCs) have become increasingly popular in Offshore Financial Centres (OFCs) in recent times, and the BVI enacted special provisions for PTCs in January 2007 that further enhance its world-renowned trusts and estate-planning products. 
Accounting and Legal Services: The world's foremost accountancy firms all have a presence in the BVI, and there are clear signs of a growing demand for their services, particularly in the areas of mutual funds audit and insolvency practice. In addition, legal services are growing on the islands with the recent influx of several prominent law firms, including the international law firm Withers in 2009, which chose the BVI as the location for its first foray into the offshore legal sphere. BVI lawyers are widely respected throughout the financial services sector, and several BVI firms have opened offices in London and Hong Kong, all of which work closely with their BVI offices. 