BVI FSC Publishes Advisory Warning on the Belarus Order, 2011

The British Virgin Islands Financial Services Commission issued advisory warning, informing on the publication of The Belarus (Restrictive Measures) (Overseas Territories) Order, 2011.

By this notice, The Belarus (Restrictive Measures) (Overseas Territories) Order, 2006 has been revoked, and notice is further given of the Belarus (Restrictive Measures) (Overseas Territories) Order, 2011 which has been amended by the Belarus (Restrictive Measures) (Overseas Territories) (Amendment) Order, 2011.

These Orders give effect to restrictive measures adopted by the European Union in respect of Belarus, which include prohibition on the supply and delivery of arms and related material, the freezing of the funds and economic resources, and prohibition on making funds and economic resources available to persons or entities listed in Annex I and IA to the Council Regulation. This information is published on the EU website at http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2006:134:0001:0011:EN:PDF.

Brian Obvi,
Offshore Analyst

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Commission Publishes Restrictive Measures Concerning Iran and Libya

The British Virgin Islands Financial Services Commission has published Advisory Warnings concerning the requirement for the public to comply with the requirements of The Iran (Restrictive Measures) (Overseas Territories) Order 2011, and The Libya (Restrictive Measures) (Overseas Territories) (Amendment) Order 2011.

The Order concerning Iran came into force on 16 December, 2011, and was made as a result of the European Union in Council Decision 2011/235/CFSP on 12 April, 2011, calling upon member states to freeze the funds and economic resources, of certain persons responsible for human rights violation in Iran. The Amendment Order on Libya came into force of 18 November, 2011, as a result of the United Nations Security Council Resolution 2009 (2011) adopted on 16 September, 2011, which called to apply certain measures to give effect to decisions of that Council in relation to Libya.

The Amended Orders include the full list of designated persons in each of the two countries to whom the measures concern.

Brian Obvi,
Offshore Analyst

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Advisory Warning No. 3 Published by the BVI FSC

The British Virgin Islands Financial Services Commission has published Advisory Warning No. 3, concerning the investment company INVESTMENTCODE Inc., which is offering investment opportunities on its websites at http://invcode.com, and presenting itself as being incorporated and registered in the British Virgin Islands. In the Advisory Warning, the FSC informs that INVESTMENTCODE Inc. is not and has not at any time been incorporated or registered in the BVI jurisdiction or licensed by the Commission.

The public is also invited to provide the Commission with any relevant information on other questionable entities which are operating in or from within the BVI territory.

Brian Obvi,
Offshore Analyst

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Advisory Warning No.2 Issued by BVI FSC

Advisory Warning No. 2 of 2012 was published by the British Virgin Islands Financial Services Commission on 29 February, 2012, relating to the Stand Online Ltd./ Fidelity Ltd. - the companies which offered investment opportunities on the websites at www.stockcastle.com, and presented itself as being incorporated and registered in the British Virgin Islands.

The BVI FSC informed the public that Stand Online Ltd. / Fidelity Ltd. is not, and has not at any time been incorporated or registered in the British Virgin Islands jurisdiction, or licensed by the Financial Services Commission. The Commission urged the public to exercise extreme caution in conducting any transactions with Stand Online Ltd. / Fidelity Ltd.

Also, the Commission has been advised that neither of the entities has any affiliation to Fidelity Corporate Services Ltd. and Fidelity Management Services Limited – the companies which are licensed by the FSC, and have all the rights to offer incorporation and investment services in the British Virgin Islands jurisdiction.

Brian Obvi,
Offshore Analyst

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BVI FSC Published Advisory Warning on Pyramid Scheme Frauds

In January, a special Advisory Warning was published by the British Virgin Islands Financial Services Commission, which became the first document of this kind in the year 2012, urging investors to beware of Pyramid Scheme Frauds and other investment scams.

In this press release, a pyramid scheme is defined as a fraudulent money-making scheme based on a non-sustainable business model that involves the exchange of money primarily for enrolling other people into the scheme, without delivering a legitimate product or service. The published document contains also the signs of a pyramid structure becoming a pyramid scheme – for example, if joining the group allows the new member to profit by signing up new members, it is normally scam. There are also other ways to identify pyramid schemes.

The BVI FSC warns that if these companies do not disclose information on the risks involved or tell clients otherwise then they would be involved in illegal schemes. Also, legitimate trading schemes rely on valuable goods and services, while illegal pyramid schemes focus simply on recruiting investors.

On the British Virgin Islands website, there is additional information on pyramid schemes, how to evaluate potential opportunities to avoid becoming a victim of fraud, and some tips on what you can do if you have become a victim of pyramid scheme fraud.

Brian Obvi,
Offshore Analyst

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BVI FSC Informed on the Update of FATF Public Statement

In December of the last year, the British Virgin Islands Financial Services Commission published information on the update of the FATF public statement which was issued on 18 February, 2010. On 22 October, 2010, the Financial Action Task Force (FATF) reaffirmed the blacklisting of Iran and North Korea. The BVI FSC advised the public to note the concerns with respect of these jurisdictions, and consider the money laundering and terrorist financing risks associated with them. When dealing with either North Korea or Iran businesses or customers, general public members are advised to apply appropriate or enhanced customer due diligence measures.

The same day of October, FATF published another statement under the name “Improving Global AML/CFT Compliance: Update On-Going Process”, providing updated statements on the jurisdictions that have committed to improve their AML/CFT frameworks.

Brian Obvi,
Offshore Analyst

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BVI FSC Issued Advisory Warnings on Insurance Companies

The British Virgin Islands Financial Services Commission issued Advisory Warnings on two companies, having informed the public that Team Casualty Insurance Company Limited and Willow Grove Life Insurance Company Limited are no longer licensed to carry on insurance business in or from the British Virgin Islands.

In the Advisory Warning, the BVI FSC stated that Team Casualty Insurance Company Limited and Willow Grove Life Insurance Company Limited contravened the following sections of the Insurance Act, 1994:

(a) Section 55 of the Act by failing to seek the prior approval of the Commission to discontinue its business in the British Virgin Islands;
(b) Section 73 of the Act by having a prescribed word in their names;
(c) Section 22(1)(a) and (b) of the Act by failing to submit annual reports to the Commission since 2005; and,
(d) Section 17 of the Act by failing to pay the annual license fee since 2007.

Brian Obvi,
Offshore Analyst

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BVI FSC Published Advisory Warning on WI NET Corporation

The BVI FSC issued Advisory Warning informing the public that WI NET CORPORATION, also known as WATER INVESTMENT, is not licensed to carry on financial services business in the BVI territory.

According to the announcement of the Commission, WI NET CORPORATION offered investment opportunities via www.waterinvestment.net, and held itself as a company incorporated, registered and licensed in the British Virgin Islands, while it is not and has never been a BVI-registered company.

The BVI FSC asked the public to exercise extreme caution in having any deals with WI NET CORPORATION (or WATER INVESTMENT).

Brian Obvi,
Offshore Analyst

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BVI FSC Issued Advisory Warnings on Financial Services Companies

On November 17, 2009, the British Virgin Islands Financial Services Commission published Advisory Warnings concerning two offshore companies. One of the documents issued under Section 4 (1) (l) of the Financial Services Commission Act, 2001 informs the public that the company named Golden Gate Education Ltd., also known as Golden Gate Ltd. and FinancerzWorld, is not licensed to conduct financial services business in or from within the British Virgin islands.

By the second document the BVI FSC warns the public that another company, FX World Online Ltd, is not licensed to carry on financial services business in or from within the territory.

The Commission advises the public to exercise extreme caution in conducting any transactions with FX World Online Ltd. and Golden Gate Education Ltd (also Golden Gate Ltd. and FinancerzWorld). The Advisory Warnings on these companies are the 23rd and 24th documents of this category in the year 2009.

Brian Obvi,
Offshore Analyst

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BVI FSC Issues Advisory Warnings on Two Companies

The British Virgin Islands Financial Services Commission has issued Advisory Warnings No. 21 and 22 of 2009.

One of the documents both dated November 6 concerns Offshore Asset Management Inc. The Commission informs the public that this offshore company is not incorporated in the British Virgin Islands, and is not licensed to conduct any financial services business in or from within the jurisdiction.

The second Advisory Warning provides information that HMNH Capital Management Ltd., also known as HMNH Capital Ltd, is not registered or incorporated in BVI and is not licensed to carry on financial services business in or from within the BVI territory.

Brian Obvi,
Offshore Analyst

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BVI FSC Issues Advisory Warnings on Financial Services Business Companies

On September 8 2009, the British Virgin Islands Financial Services Commission issued two Advisory Warnings concerning the following companies:

Exto Capital S.A.;
Sky Way Monetary Limited;
and Gulf International Investment Group Limited (GIIG 1982).

According to the documents published under Section 4 (1) (l) of the Financial Services Commission Act, 2001, these companies are not licensed to carry on financial services business in or from within the territory of the British Virgin Islands. The Commission advised members of the public to exercise extreme caution in conducting any transactions with these companies.

Members of the public are advised to exercise extreme caution in conducting any transactions with Exto Capital S.A.

The documents are signed by CEO of the BVI FSC Robert A. Mathavious.

Brian Obvi,
Offshore Analyst

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New Warnings Published by the Commission

On July 10 - 13, 2009, the BVI FSC published several documents warning the public on firms that are not licensed to carry on business in or from the territory of the British Virgin Islands. Among the firms that are not authorized to carry on financial services business in BVI there are:
- SP Trade Investments Capital Ltd.
- SP Trader Management Company Ltd.
- Taurus Global Markets Ltd.
- iTrade Capital Markets Ltd.
- Marketiva Corporation
- Pro Finance Group Inc. (PFGFX)

The Commission advised the public to be cautious in transactions with the following companies which are not licensed to carry on banking or financial services business in BVI:
- MBC Financial Services Ltd.
- Multiple Banks Clearing (MBC FX)

The companies that are not licensed to carry on registered agent services business in the British Virgin Islands, and are not incorporated in the British Virgin Islands are:
- Gold-Tech (GT) Services Limited
- Kaizen Corporate Services Limited
- CC Logic LLC

Also, the FSC informed the public that European Direct International Insurance Limited is not licensed to carry on insurance business in or from within the territory, and is not registered or incorporated in the British Virgin Islands.

Advisory Warnings No. 10 - 18 of 2009 were issued under Section 4 (1) (l) of the Financial Services Commission Act, 2001, and signed by Robert A. Mathavious.

Brian Obvi,
Offshore Analyst

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The Commission Warns Investors on Forex Currency Trading Frauds

The BVI FSC has issued an advisory warning to investors to beware them of Foreign Exchange Currency Trading Frauds. The warning issued under Section 4 (1) (1) of the Financial Services Commission Act, 2001, informs the public that the entities professing to offer high yield and low risk investment opportunities from investments in foreign currency contracts “are normally scams”. In the opinion of the Commission, these entities may look like a new sophisticated form of investment opportunities, but in reality these are financial frauds “especially perpetrated on retail customers”.

The Commission explains that Forex scams may be widely advertised, and the customers are told that they will obtain tens of thousands of dollars in a few weeks or months. After the currency trading firms tell the customers that they can or should trade in the interbank market, or that they will do so on their behalf, customers' money is diverted or simply stolen.

It is noted in the document that the interbank market does not usually include individual or retail customers, and the claims on the possibility of trading in this market should therefore be treated with extreme caution. The public is asked to note a number of warning signs that can point at foreign exchange scam, and not to invest in them.

The BVI FSC warns that if the companies do not inform customers on the risks involved, or even mislead them, then they would be involved in illegal schemes.

Brian Obvi,
Offshore Analyst

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The Commission Issues Advisory Warning on three Insurance Companies

On March 24 2009, Advisory Warning No. 2 of the year 2009 was published by the British Virgin Islands Financial Services Commission. By issuing this document, the Commission informed the public that Colonial Life Insurance Company (Trinidad) Limited, British American Insurance Company Limited and the CL Financial Limited are not licensed to carry on financial services business in or from the territory of the British Virgin Islands.

The Commission also asked the public to inform them of the facts when they at any time had any transactions with the above-mentioned companies, or purchased any kinds of financial products from them, including insurance or investment type products.

Brian Obvi,
Offshore Analyst

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Advisory Warning on BVI Insurance Company issued by the Commission

On 17 February 2009, the British Virgin Islands Financial Services Commission issued Advisory Warning No. 1 of 2009 concerning insurance company Source One Insurance Ltd. The Commission informed the public that the company is no longer licensed under the Insurance Act, 1994, to carry on insurance business from the BVI territory, based on the fact that the licence granted to Source One Insurance Ltd. expired on 31 December 2007 and has not been renewed since that time.

The BVI company tried to continue its operations into another jurisdiction but could not because it has failed to comply with the BVI's laws and requirements to do so.

The BVI FSC advised public to exercise extreme caution in conducting any transactions with Source One Insurance Ltd., as it has no licence to carry on insurance business in or from within the British Virgin Islands.

Brian Obvi,
Offshore Analyst

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Warning on BVI firm Ross-Parkinson and NY-based International Equity Portfolio

The Swedish Financial Supervisory Authority, Finansinspektionen, has reported that Ross Parkinson (www. rossparkinson .com), having its headquarters in the British Virgin Islands and using the address Wickhams Cay, Road Town, Tortola, BVI, as well as New York-based International Equity Portfolio, are offering investment services without the required authorisation, and therefore they are not entitled to provide financial services.

Representatives of Ross-Parkinson have contacted investors by phone offering to buy their holdings of shares, however in advance they are asking the investors to pay a fee. This may be called an advance fee fraud scheme.

This warning was published on public sites with the purpose to protect the investing community.

Brian Obvi,
Offshore Analyst

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BVI FSC Publishes Public Statement Suspending Activities of the BVI-registered Fund

The British Virgin Islands Financial Services Commission issued a public statement pursuant to the Financial Services Commission Act, 2001, concerning Reserve International Liquidity Fund Ltd. The purpose of this public announcement by the BVI FSC is to protect the interests of the customers, creditors or investors of this BVI Offshore Fund, registered in 1999 under the BVI Mutual Funds Act, 1996.

In October 2008, the Commission received complaints from investors who alleged that the Fund has improperly valued its bond holdings in an institution which had filed for bankruptcy. The complaint specifically alleges that the Fund failed to appropriately mark down the value of these bonds, and further allowed certain investors to redeem their investments at par value, before taking action to write down the value of the bonds which made the Fund's remaining investors to absorb the loss associated with these bonds.

Investigations into the Fund's activities were commenced on 10 October, when the Financial Services Commission asked for detailed information and records from the Fund to establish the relevance of allegations against it. While investigations into the Fund are continuing, the Commission issued a directive to the BVI Fund, requiring it, until further notice, to suspend the shares subscription and their redemption to investors, as well as submit monthly reports to the Commission that would include the details of its cash balance and investments, and an update on all ongoing litigation where the Fund is involved.

In the course of investigation of Reserve International Liquidity Fund Ltd, the FSC will provide an update.

Brian Obvi,
Offshore Analyst

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BVI FSC Warns Publics about Unauthorised Financial Services Providers

On September 22, 2008, the British Virgin Islands Financial Services Commission has published Advisory Warning No.3 concerning the activities of the company Offshore Health and Travel Benefits. By this Advisory Warning, the BVI FSC had the purpose to warn public against dealing with unauthorised financial services providers.

According to the information announced by the BVI FSC, Offshore Health and Travel Benefits has not received any license or authorisation “to conduct any form of regulated financial services business in or from within the BVI, and as such has not been authorised to conduct insurance business in or from within the BVI.”

Offshore Health and Travel Benefits has solicited insurance business through its website at www. tilloglobe .com, and an advertisement in the British Virgin Islands media. Meanwhile, the BVI FSC informed the public that Offshore Health and Travel Benefits have not been accessed by the Commission to be allowed to carry on insurance or any type of financial services business in or from within the BVI.

Members of the public are also invited to provide the BVI FSC with any information concerning Offshore Health and Travel Benefits and its activities, as well as any other unlicensed entities operating in the similar way in or from within the BVI territory.

Brian Obvi,
Offshore Analyst

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