BRITISH VIRGIN ISLANDS Law and Practice Contributed by: Omonike Robinson-Pickering, Iona Wright, Lucy Frew and Sara Hall, Walkers
(although they can take longer) to obtain and should be factored into the transaction time - frame and be a condition to completion. A BVI bank is required to immediately notify the FSC of any matter that it considers to be material to the fitness and propriety of any person having a significant interest in it. 4. Governance 4.1 Corporate Governance Requirements The BVI Regulatory Code sets out the corporate governance framework applicable to BVI banks, which provides that a bank must: • take reasonable care to maintain a clear and appropriate apportionment of significant responsibilities among its directors, senior managers and key functionaries; • establish and maintain such systems and controls as are appropriate for the nature, size, complexity, structure and diversity of its business; • ensure that its systems and controls are regu - larly reviewed and updated as required; and • make and retain records as to its compliance. The BVI Regulatory Code also sets out require - ments for terms of business, advertising and communication practices, directors of banks, and board and senior management responsi - bilities. In terms of systems and controls, a BVI bank must: • establish such strategies, policies, systems and controls as are appropriate given the nature, size, complexity, structure and diver -
sity of its business and the degree of risk associated with each area of its business; • ensure that its strategies, policies, systems and controls are fully and clearly documented and are communicated, as appropriate, to members of staff and other functionaries; and • specify the duties and responsibilities of the board and senior management. A BVI bank must also establish and maintain a clearly defined risk management strategy and policy, business continuity plans, and an adequate and effective system of internal con - trols appropriate for the nature, size, complex - ity, structure and diversity of its business over which the board has ultimate responsibility. IT systems should be reliable and secure, and monitored independently with adequate contin - gency measures. Internal controls must be monitored on an ongo - ing basis, with regular reports made to the board and any deficiencies corrected as soon as rea - sonably practicable. To this end, an internal audit function and audit committee must be appoint - ed, and the bank must maintain and retain suf- ficient records. Banks are specifically required to have in place investment, credit and operational risk strate - gies, systems and controls, along with systems for credit administration, measurement and monitoring, and controls over credit risk. They must also have country and transfer risk sys - tems and controls, and a framework for manag - ing liquidity, including liquidity limits. There are no BVI-specific voluntary codes which BVI banks have to comply with, although there is a BVI Bank Association.
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