BVI Virtual Asset Service Providers (VASPs) – New AML Requirements And Legal Framework

With effect from 1 December 2022, all BVI entities that fall within the definition of a virtual asset service provider (a "VASP"), as set out in the recently amended BVI Anti-Money Laundering Regulations (the "AML Regulations") and Anti-Money Laundering and Terrorist Financing Codes of Practice (the "Code"), will be required to comply in full with BVI anti-money laundering, counter-terrorist financing and anti-proliferation finance legislation (together the "BVI AML Laws").

In addition, the proposed Virtual Asset Service Providers Act, 2022 (the "VASP Act"), has now been circulated for consultation and was introduced to implement the Financial Action Task Force recommendations in relation to the oversight of VASPs; demonstrating the BVI's continued commitment to maintaining international standards. The VASP Act, once finalised and brought into force, will create a new legal framework and licensing regime for BVI entities that fall within the definition of a VASP.