22 Jun The New Record-Keeping Regulation For BVI Domiciled TrustsEmail This Post
A new record-keeping regulation for BVI domiciled trusts entered into force on the 30th of March 2015, through an amendment to the Trustee Ordinance, Cap. 303. The new regulations apply to all types of BVI trusts and have been introduced to comply with OECD recommendations. Similar requirements have already been implemented for BVI companies and limited partnerships.
According to the new requirements, trustees of BVI trusts must now maintain records underlying documentation of the trust for a period of at least five years. Moreover, the records must be sufficient to show and explain all trust transactions and enable the trust’s financial position to be determined with reasonable accuracy.
The following fall under the category of “Records” and “Underlying Documentation”: accounts, invoices, contracts or similar documentation that show the value and detail of receipts and expenses, all sales and purchases and other transactions as well as the assets and liabilities of the trust.
- The records must “show and explain” the trust’s transactions and make it possible to determine with “reasonable accuracy” the “financial position of the trust” at any given moment.
- The records can be kept in or outside the British Virgin Islands.
- The records must be kept “for a period of at least five years”.
- Failure to observe these requirements (without lawful or reasonable excuse) constitutes a criminal offence which may be punished by a fine of up to $100,000 or a prison term of no more than five years.
For further information on the new requirements or how we can assist you with our accounting services, please contact us for more details.