Continuing obligations for BVI approved funds

Reporting and financial statements An approved fund is required to prepare and submit the following to the FSC: Financial statements, which do not need to be audited but are required to be approved or signed by a director or the general partner of the fund, within six months of the end of the financial year to which they relate. An annual return, no later than 31 January containing the following information as at 31 December of the preceding year: the number of investors in the fund the total investments in the fund the aggregate subscriptions to the fund the aggregate redemptions paid to investors the net asset value of the fund any significant investor complaint received by the fund and how the complaint was dealt with a statement that the fund is not in breach of the requirements of the Regulations that allow it to continue as an approved fund Anti-money laundering obligations The BVI anti-money laundering (AML) regime applies to all funds as they are classified as "relevant persons" under the Anti-Money Laundering Regulations 2008. In addition to appointing an officer to the fund or another individual as MLRO (as mentioned above), a fund will be required to: Put in place investor on-boarding procedures which address typical "know your client" requirements Put in place and maintain a written and effective system of internal controls which provides appropriate policies, processes and procedures for forestalling and preventing money laundering and countering the financing of terrorism (the Manual). The Manual should be reviewed annually to ensure compliance with AML regime in the British Virgin Islands Report suspicious transactions to the Financial Investigation Agency (FIA) in the BVI Report the identity of its appointed MLRO to the FIA The BVI rules do provide for funds to outsource all and any of these obligations to functionaries based outside of the BVI, such as an administrator or investment manager (if the fund has one). Any outsourcing must, however, be documented in writing. Fund policies and arrangements The Fund is required to maintain a valuation policy setting out the applicable procedures for the valuation of fund property, the preparation of reports on the valuation and setting out the mechanisms for sharing valuation information with investors (Valuation Policy). The Fund is also required to have a safekeeping policy and have adequate arrangements in place for the safekeeping of fund property (Safekeeping Policy). On an annual basis, the Fund should review its Valuation Policy and Safekeeping Policy to ensure compliance with BVI legislation. Obligations under FATCA and CRS Approved funds are required to register for a Global Intermediary Identification Number (GIIN) with the US Internal Revenue Service. Funds are also required to enrol with the ITA. Enrolment for FATCA reporting is made through the ITA's online portal, called BVI Financial Account Reporting System, and for CRS is made by email to [email protected]. Approved funds will need to identify reportable accounts and start to report the necessary information to the ITA. The reporting deadline for US FATCA, UK FATCA and CRS is 31 May. The information that must be reported under US and UK FATCA and CRS is broadly similar and includes: the name, date of birth, tax identification number (TIN) (for Specified US Persons where available); National Insurance Number (for Specified UK Persons, where available); jurisdiction of residence (for reportable persons under CRS only); the account number; name and GIIN of the reporting financial institution; and the account balance (some minimums apply under FATCA).