BRITISH VIRGIN ISLANDS
BENEFICIAL OWNERSHIP SECURE SEARCH SYSTEM ACT, 2017 [read]
BENEFICIAL OWNERSHIP SECURE SEARCH SYSTEM (FEES) REGULATIONS, 2019 [read]
Date of Effect
The Beneficial Ownership Secure Search System Act, 2017 (the “BOSS Act”) and the Beneficial Ownership Secure Search System (Amendment) Act, 2017, came into force on the same day on 30 June 2017.
Object and Purpose
As per the preamble of the Act, the BOSS is an Act to establish a secure search system to facilitate the effective and efficient storage and retrieval of beneficial owner information for all corporate and legal entities using the system and to provide for matters incidental thereto.
Beneficial Ownership
Section 6(1) of the BOSS Act provides for the definition of the beneficial ownership (BO). It reads as follows:
(1) A beneficial owner is the natural person who ultimately owns or controls a corporate or legal entity and includes, though not restricted to
(a) in the case of a legal person other than a corporate and legal entity whose securities are listed on a recognised stock exchange, a natural person who ultimately owns or controls, whether directly or indirectly, twenty five or more per cent of the shares or voting rights in the legal person;
(b) in the case of a legal person, a natural person who otherwise exercises control over the management of the legal person;
(c) in the case of a legal arrangement
(i) the partner or partners who control the partnership;
(ii) the trustee or other person who controls the legal arrangement; or
(iii) the settlor or other person by whom the legal arrangement is made;
(d) in the case of a corporate and legal entity which is in insolvent liquidation, administration or administrative receivership under the Insolvency Act, 2003, the natural person who is appointed as a liquidator, administrator or administrative receiver of the corporate and legal entity; or
(e) in the case of a receiver being appointed over twenty five or more per cent of the shares or voting rights in a corporate and legal entity, the creditor who appoints the receiver; or
(f) in the case of a shareholder in the corporate and legal entity who would otherwise be a beneficial owner under this subsection but is deceased, the natural person acting as an executor or a personal representative of the deceased's estate.
Designated Person
Section 13(6) of the Act provides that a designated person shall execute a search of the Beneficial Ownership Secure Search System if formally requested to do so by a senior officer of any of the following authorities:
(a) the Financial Investigation Agency;
(b) the Financial Services Commission;
(c) the International Tax Authority;
(d) the Attorney General's Chambers.
Obligaiton of BVI Company to identify the beneficial owner
Section 9(2) provides that a corporate and legal entity shall identify any person who is a beneficial owner or a registrable legal entity of that corporate and legal entity and notify the registered agent of those persons so identified as beneficial owners and those legal entities so identified as registrable legal entities within 15 days of identifying such person or entity;
Penalty for Non-compliance of section 9(2)
Section 9(6) provides that where a corporate or legal entity fails to comply with a requirement of this section without reasonable cause he or she commits an offence and is liable
(a) on summary conviction to a fine not exceeding forty thousand dollars ($40,000) or to imprisonment for a term not exceeding six months or both; or
(b) on conviction on indictment, to a fine not exceeding two hundred and fifty thousand dollars ($250,000) or to imprisonment for a term not exceeding five years, or both.
Obligation to notify Registered Agent of Change in Beneficial Owner
As per section 12 (1) of the BOSSs Act, a corporate and legal entity shall, within 15 days of becoming aware of a change of any of the prescribed information relating to beneficial owners or registrable legal entities, notify its registered agent of such changes and the date such changes took place.
Penalty for Non-compliance of section 12(1)
As per section 12(4) of the BOSSs Act, where a corporate and legal entity fails to comply with a requirement of this section without reasonable cause he or she commits an offence and is liable
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