Has your registered agent bombarded you with KYC requests or threatened to resign?
KYC (know your client) or CDD (customer due diligence) requirements for a BVI company can be overwhelming. The regulator has stepped up enforcement and is imposing heavy fines on registered agents for non-compliance, with many of them struggling to keep up. Some registered agents are so concerned, perhaps arising from a history of non-compliance, that they are taking a sledgehammer approach and collecting CDD on anyone connected to the company, regardless of legal or policy requirements.
At Conyers, we know the law. We know the CDD requirements and we comply with them. We take a risk-based approach to compliance, meaning we collect the CDD required for a client with the indicated risk profile. For example, a BVI company listed on the New York Stock Exchange will have a very different risk profile than a company with a shareholder who is a PEP (politically exposed person). For a NYSE-listed company, we may be able to carry out CDD entirely through independent sources. For more complicated companies, we review the structure chart to identify those individuals with at least a 10% interest in the company and other potential controllers. We collect all necessary CDD, such as on the 10%+ beneficial owners, controllers and directors, but not beyond what is required by law.
Our use of the best available technology also simplifies the CDD experience. When an individual is identified as a verification subject, we offer them the choice of either completing a pdf form or using an identity verification app, such as Qual-ID. For those clients who opt to use the app, the CDD process can be significantly easier and much less time-consuming.
In short, at Conyers we recognise that CDD is part of the client experience and accordingly take a hands-on approach. For example, rather than just sending generic pdf forms for completion, we first pre-populate them as much as possible based on the information provided. We recognise that CDD should not be a chore and try to reduce the burden on the client as much as possible.
We also realise you need a service provider who looks for solutions. If a minority shareholder does not provide CDD, it could jeopardise the entire company. The problem is particularly acute if your registered agent is threatening to resign, as it can lead to the immediate dissolution of your company. The Conyers team can advise on appropriate remedies, for example immobilising the shares of the minority shareholder, as well as undertake the required analysis to determine which solution is most appropriate for you.
In summary, if you are a sophisticated company with a registered agent who is taking a blunt approach to CDD, we may be able to help. If so please get in touch with one of the undersigned or reach out to your usual Conyers contact.