Asset Tracing In The British Virgin Islands

In this article, we will discuss some of the tools available to a party in the British Virgin Islands (BVI) to seek to recover property, or proceeds of property, which have been misappropriated. It is not surprising that in some cases, the identity of the wrongdoer or the whereabouts of the misappropriated property is unknown.

Against that background, it is worth noting that while a company incorporated in the BVI is required to maintain certain records at the office of its registered agent (such as its memorandum and articles of association, register of directors, register of members, minutes of members' and directors' meetings and copies of resolutions), there is no right for the public to inspect such records. Indeed, confidentiality of corporate documents and information is one of the key attractions of incorporating a company in the BVI. BVI companies are not generally required to maintain or file statutory accounts, or meet any particular set of international accounting standards. Under section 98 of the BVI Business Companies Act 2004, all that a company is required to maintain are records "sufficient to show and explain the company's transactions" and which "will, at any time, enable the financial position of the company to be determined with reasonable accuracy". There is no requirement for any accounts or financial records to be subject to independent audit.

There are other publicly available sources which may help a party to identify and track assets of a company. It is possible to conduct a company search at the BVI Registrar of Corporate Affairs (the Registrar), although such a search is likely to reveal only limited information. A BVI company is only required to file its memorandum and articles of association, together with any amendments to these documents. It is not required to file its register of directors, register of members, register of charges or an annual return with the Registrar. A company may elect to file one or more of these registers, and if it does it will be obliged to continue to file such documents until it gives formal notice to the Registrar. In practice, however, it is very rare for a company to undertake such voluntary filing.

Information regarding entities regulated by the BVI Financial Services Commission is available on the Commission website. Such information would include banks and fiduciary services companies, insurers and insurance brokers, accountants, lawyers, insolvency practitioners, mutual funds and registered agents.

It is also possible to undertake a court search to determine whether a company is a party to any pending litigation in the BVI, and whether there has been any past judgment which may shed light on assets held by the company. In addition, upon application the BVI Land Registry can provide certain details regarding the owner of BVI land or real estate. However, this requires the applicant to first be able to identify the location or owner of the land. A party may also obtain...