The Government of the Virgin Islands has passed a legislative amendment granting the Financial Services Commission (FSC) authority to extend the deadline for companies to submit their annual financial returns by up to nine months.
The amendment, the BVI Business Companies (Amendment) (No. 2) Bill, 2024, was approved on Tuesday, October 29, in response to reports that approximately 25-30% of businesses fail to meet this requirement, despite it being legally mandated.
Premier Dr. the Hon. Natalio Wheatley, who introduced the bill, underscored the importance of the amendment, highlighting it as a step towards improving transparency and accountability in the territory’s financial services sector. He noted that the extension provides necessary leeway for companies grappling with regulatory challenges.
The bill raised some concerns among lawmakers with Opposition Leader Hon. Ronnie Skelton voicing his apprehension over the amendment’s impact on smaller businesses, warning that non-compliance could result in local companies forfeiting assets to the Crown.
Deputy Premier Hon. Julian Fraser expressed reluctant support for the bill, citing the territory’s commitment to meeting financial obligations while warning of potential negative impacts on small businesses.
Reflecting on the growth journey of many BVI businesses, Fraser expressed concern that overly stringent regulations could jeopardize the survival of local enterprises.
Meanwhile, former Minister for Financial Services, Labour, and Trade Hon. Lorna Smith, OBE, advocated for the amendment, highlighting the need for compliance with international standards as essential to the success of both financial services and local businesses.
Smith emphasized that ensuring alignment with international compliance is key to the longevity and reputation of BVI companies.
As the territory moves forward with these adjustments, the amendment offers a compromise: strengthening regulatory adherence while giving businesses time to adapt without immediate penalties.