B.V.I. Thursday, May 28 – The House of Assembly on Wednesday approved a bill to introduce a regime for the licensing and supervising of financing and money services businesses carried on in or from within the Territory.

Premier and Minister of Finance Hon. Ralph T. O’Neal, OBE moved the Bill entitled “Financing and Money Services Act, 2008” which received unanimous support from all members of the House. The Bill will bring the Territory into full compliance with the Financial Action Task Force’s (FATF) Recommendation 23 which, among other things, requires that natural and legal persons who provide money or value transfer services, or money or currency changing service, should be licensed or registered.

The Finance Minister, who is also the minister with responsibility for financial services, thanked the members of the House for supporting what he termed as “this most important Bill”, adding that “the idea of policy makers being more informed of developments in this area is most important.”

The Premier said after speaking with the Managing Director of the Financial Services Commission, Mr. Robert Mathavious,  they  agreed that they must demystify the financial services industry. “People must know what it is and what it is about.  The population must know and appreciate what is being done,” he said.

The Bill also provides the legislative framework for the licensing, regulating and supervising of every person who engages in the provision of money or value transfer services including money or currency changing services.

The Bill also applies to persons who conduct businesses which provide credit under financing agreements to persons resident in the Virgin Islands or in an amount or to a value in excess of $50,000; lease property under financing leases, or conduct any business as may be specified as financing business.

Additionally, the Bill defines a person as carrying on money service business if he or she provides any or all of the following services: money transmission, cheque cashing, buying and selling foreign currency, including spot and forward exchange transaction and wholesale money market dealings; the issuance, sale or redemption of money orders or traveller’s cheques, and such other services as may be prescribed in Regulations.

The Bill will not, however, apply to a person licensed under the Banks and Trust Companies Act, 1990, or a post office operated by the Government and carrying on money services business, unless such person is operating as an agent or franchise holder of a non-bank financial business or money services business.

According to the Bill, under the proposed regime, non-bank financial business and money services business would be licensed and regulated by the Financial Services Commission.  It will be a criminal offence for a person to carry on a non-bank financial or money service business without a license.

The enactment of this Bill will further strengthen the Virgin Islands’ continued regulation of relevant business entities in its financial services sector and demonstrate the Territory’s continued compliance with established international standards relating to efficient, prudential and effective regulations.