How do we locate the de-registration application?
The de-registration process is a filing that can made using the BVIFARs portal. Please refer to page 7 of the BVI FARs User Guide for the steps to complete this process.
Deactivation question. If you have resigned from an FI wherein you are the PPOC, and followed all procedure’s prior to your resignation and the client does not provide info for the new PPOC to the BVI ITA regardless of all your follow ups. How can this entity be de-activated?
No, the FI only reports for applicable financial periods. For instance, if the deregistration is due to the FI being liquidated in 2022, even if the application remains pending in 2023, the FI will only be expect to file up until of liquidation.
Is it correct that you can submit a deregistration request once the FI has closed all accounts and completed all the required CRS filings? Does this only happen once the FI has been fully dissolved?
A VIFI can only be deregistered if 1) it no longer meets the definition of a VIFI; or 2) it is no longer in existence, for example by liquidation or no longer resident in the Virgin Islands, for example by means of continuation to another jurisdiction, and it has met all reporting obligations for years
Are we required to to use the BVI self-certification template? can we use a self-certification that is similar to BVI template?
No, the BVI template is just a guide for Financial Institutions. If a Financial Institution decides not to use the BVI’s template, the FI must note that for a self certification form to be valid the FI must collect at a minimum the required information as outlined in the law (this includes, the Account Holder’s
For the Controlling Persons, should we rely on the information provided in the Self-Certification or we still need to check the Trust agreement to identify the Trustee, Settlor, and Beneficiaries?
The FI can rely on the information included in the self-certification unless they know or have reason to know that the circumstances affecting the correctness of the self-certification have changed or cannot be relied upon.
Is it understood that the beneficiaries will be reported only in the year when they receive a distribution?
This is true for discretionary beneficiaries. It is important to note that the Implementation Handbook makes a distinction between beneficiaries entitled to 'mandatory' distributions and those who are discretionary without any enforceable rights to receive trust property. As such, the RFI must identify whether their beneficiaries are discretionary or mandatory and report according. A discretionary
Has the BVI allowed RFIs to align the scope of the beneficiaries of a trust treated as Controlling Persons of a trust with the scope of the beneficiaries of a trust treated as a Reportable Person of a trust? If so, is there any process to elect/use this approach?
Section 32A (10) of Mutual Legal Assistance (Tax Matters) Act, Revise Edition 2020 allows Reporting Financial Institutions to align the scope of Beneficiaries as controlling Person with the scope of beneficiaries treated as a reportable persons. If the reporting FI elects this approach, Section 32A (11) and (12) of the MLA indicates that the Reporting
How about where the FI cannot tell when the Trustor/Settlor passes away. Is it best practice to document each discretionary beneficiary, as it’s very uncommon for an account holder to divulge such information that would require additional documentation?
The FI will have to continue to name the Trustor/Settlor as the account holder until they have information to demonstrate that the Trustor/Settlor has died. The discretionary beneficiaries cannot be listed until they become account holders (i.e. until they have received the distribution). The RFI must use reasonable efforts to ensure that the information they
For an investment entity, is it required to include in the reporting the interest and dividends? Isnt this applicable only to Custodian Institution?
An investment entity only has to report on a Financial Account and according to the standard an Investment Entity’s Financial Account is any equity or debt interest in the Financial Institution. Interest and Dividends are to be reported in case of a Custodial Account and interest paid is to be reported in the case of