1 No.10 of 2012

VIRGIN ISLANDS

NON-PROFIT ORGANISATIONS ACT, 2012

ARRANGEMENT OF SECTIONS

PART I
PRELIMINARY
Section
1. Short title and commencement.
2. Interpretation.

PART II
ESTABLISHMENT OF REGISTRATION BOARD AND ITS FUNCTIONS

3. Non-Profit Organisation Registration Board and membership.
4. Functions of the Board.
5. Tenure of office of members.
6. Meetings of the Board.
7. Resignation of a member.
8. Disclosure of interests.
9. Fees for members.

PART III
REGISTRATION OF NON-PROFIT ORGANISATIONS

10. Registrar.
11. Requirement to register.
12. Application for registration.
13. Duration of registration.
14. Power to grant or renew registration.
15. Deregistration of non-profit organisations.
16. Register of non-profit organisations.
17. Publication of non-profit organisations.

PART IV
SUPERVISION AND MONITORING OF NON-PROFIT
ORGANISATIONS

18. Supervisory role of the Agency.
19. Power to enter premises and inspect records.
20. Power to institute inquiry.
21. Giving inaccurate or misleading information or withholding of information.

2
PART V
OBLIGATIONS OF REGISTERED NON-PROFIT ORGANISATIONS

22. Notification of changes.
23. Maintenance of records.
24. Accounts.
PART VI
MISCELLANEOUS

25. Administrative penalties.
26. Procedure to be followed by Agency.
27. Determination of appropriate penalty.
28. Appeal against an administrative penalty.
29. Limitation period.
30. Confidentiality.
31. Transitional provisions.
32. Amendment of Schedules
33. Non-applicability.
34. Offences by bodies corporate.
35. Regulations.
SCHEDULE 1
SCHEDULE 2
SCHEDULE 3

3 No.10 of 2012 Non-Profit Organisations Act, 2012 Virgin
Islands

I Assent

Governor
, 2012

VIRGIN ISLANDS

No.10 of 2012

An Act to provide for the registration, supervision and monitoring of non-profit
organisations and for other connected matters.

[Gazetted , 2012]

ENACTED by the Legislature of the Virgin Islands as follows:

PART I
PRELIMINARY

1. This Act may be cited as the Non-Profit Organisations Act, 2012 and
shall come into force on a date the Governor may, by Proclamation published in
the Gazette, appoint.

2. In this Act, unless the context otherwise requires,

“Agency” means the Financial Investigation Agency established under section 3
of the Financial Investigation Agency Act, 2003;

“accountant” means a person who is professionally certified and has the requisite
skills to keep and inspect financial records;

“Board” means the Non-Profit Organisation Registration Board established under
section 3;

“document” includes information recorded in writing regardless of form or
medium;

Short title and
commencement.
Interpretation.
No. 19 of 2003

4 “employee” means any person who provides services or labour for an employer
for wages or other remuneration, but does not include a volunteer;

“FATF” means the Financial Action Task Force;

“FATF Recommendations” means the revised FATF recommendations on
International Standards on Combating Money Laundering and the
Financing of Terrorism and Proliferation and such other amendments as
may be made;

“gross annual income” of a non-profit organisation includes

(a) income received from the provision of goods and services;
(b) rental income;
(c) interest on other income derived from investments;
(d) donations of money or other property;
(e) any grants;

“Minister” means the Minister charged with the responsibility for Voluntary
Organisations;

“non-profit organisation” or “organisation” means a body of persons whether
incorporated or unincorporated, established solely or primarily for
the promotion of charitable, religious, cultural, educational, social or
fraternal purposes, or other activities or programmes for the benefit
of the public, or a section of the public and which raises or disburses
funds in pursuance of its objectives primarily within the Territory;

“records” means recorded information regardless of form or medium created,
received and maintained by a non-profit organisation or individual in
the pursuance of its or his or her legal obligations;

“register” means the register of non-profit organisations established and kept
under section 16;

“Registrar” means the Registrar designated under section 10;

“relevant legislation” includes

(a) the BVI Business Companies Act 2004;

(b) the Financial Services Commission Act 2001;

(c) the Financial Investigation Agency Act 2003;

(d) the Proceeds of Criminal Conduct Act1997;
No. 16 of 2004
No. 12 of 2001
No. 19 of 2003
No. 5 of 1997

5
(e) the Anti-money Laundering Regulations 2008;

(f) the Anti-money Laundering and Terrorist Financing Code of
Practice, 2008; and

(g) any other terrorist financing legislation that are applicable to non-
profit organisations in the Virgin Islands.

“remuneration” includes any additional emoluments, except wages, whether
payable directly or indirectly, whether in cash or in kind;

“volunteer” means a person who performs services for an organisation for
charitable or humanitarian reasons without expectation of, or receipt of wages or
other remuneration for services rendered.

PART II
ESTABLISHMENT OF REGISTRATION BOARD AND ITS FUNCTIONS

3. (1) There is established by this Act a Non-Profit Organisation Registration
Board (in this Act referred to as the “Board”).

(2) The Board shall comprise not more than seven persons appointed by the
Minister, with the approval of Cabinet, as follows:

(a) three representatives from the community who are active
members of an existing non-profit organisation, to be chosen
by the Minister;
(b) the Permanent Secretary of the Ministry Responsible for
voluntary organisations, ex officio;
(c) a representative from the Joint Anti-Money Laundering and
Terrorist Financing Advisory Committee, practicing in the
private sector;
(d) the Registrar, ex officio;
(e) one member nominated by the Leader of the Opposition.

(3) The Minister shall appoint a member to be the Chairman of the Board
and another member to be the Deputy Chairman.

(4) The Registrar shall be the Secretary to the Board.

(5) For the purposes of subsection (2)(e), the Leader of the Opposition shall
submit the name of his or her nominee within fourteen days after receipt of the
request from the Minister.
S.I. No. 13 of
2008 S.I No. 12 of
2008
Non-Profit
Organisation
Registration Board
and membership.

6 (6) Where the Leader of the Opposition fails to provide the name of the
nominee pursuant to subsection (5), the Minister may appoint any person he or
she considers suitable.

4. The functions of the Board are

(a) to receive and determine applications for registration by
non-profit organisations;
(b) to register non-profit organisations;
(c) to receive and review financial statements and reports from
organisations;
(d) to facilitate the development of the non-profit sector in the
Virgin Islands and to promote an understanding of the role of
non-profit organisations in the Virgin Islands;
(e) to receive and investigate complaints arising out of any matter
covered in the Act;
(f) to discharge such other functions as may be assigned to it by the
Minister under this Act.

5. (1) Members of the Board, other than ex officio members, shall hold office for
a period not exceeding three years, but are eligible for re-appointment.

(2) Notwithstanding subsection (1), a member who is not an ex officio member
shall not hold office for more than two consecutive terms, but such member is
eligible for re-appointment following the expiration of one year thereafter.

(3) The Minister may, by written notice, remove a member, other than an ex
officio member, from office if satisfied that the member

(a) has, without the consent of the Chairman, been absent from three
consecutive meetings of the Board;
(b) has become bankrupt, that his or her estate has been sequestrated
or that he or she has made an arrangement with, or granted a trust
deed in favour of, his or her creditors;
(c) has been convicted of an indictable offence or any offence
involving dishonesty;
(d) is or becomes disqualified from being appointed as a member
under section 3;
(e) has an interest that is likely to prejudicially affect the exercise and
performance by him or her of his or her functions as a member;
(f) is unable or unfit to discharge his or her functions as a member.

(4) If a member dies, resigns, is removed from or otherwise vacates his or
her office prior to the expiry of the term for which he or she has been appointed,
Functions of the
Board.
Tenure of office
of members.

7 the Minister shall appoint a new member to replace him or her and the
appointment shall be for the unexpired period of the term of office of the member
in whose place he or she is appointed or for a new term not exceeding three years.

(5) Notwithstanding subsection (1) and (2), a member who represents an
organisation or institution shall cease to be a member of the Board on ceasing to
be a member of or, to be employed by the organisation or institution he or she
represents.

6. (1) The Board shall meet at least once in every quarter at such time and place
as determined by the Chairman.

(2) At every meeting of the Board, the Chairman shall preside and in his
absence the Deputy Chairman shall preside.

(3) The quorum of the Board shall be four.

(4) At any meeting for the conduct of its business, the Board shall take its
decision by a majority vote of the members present and in the event of a tie the
Chairman or Deputy Chairman, as the case may be, shall have a casting vote.

(5) The Chairman, or in his or her absence, the Deputy Chairman, shall at
any time convene a special meeting of the Board upon receipt of a requisition
signed by at least three members calling upon him or her to do so, and such
meeting shall be held not later than fourteen days after receipt of the requisition.

(6) No act or proceeding of the Board shall be invalid by reason only of the
existence of a vacancy among its members or of any defect in the appointment of
a member.

(7) Notwithstanding anything contained in this section, the Chairman may, in
any matter he or she considers exceptional, make arrangements for a decision of
the Board to be taken on such matter through a process of consultation without the
need for an actual meeting.

(8) In the conduct of its meetings, the Board shall establish its own rules of
procedure, subject to the provisions of this section.

7. A member, other than an ex officio member, may resign his or her office by
giving one month’s notice, in writing to the Minister.

8. (1) Where a matter is to be decided by the Board at a meeting, any member
present at the meeting who has an interest in the matter shall, at the meeting,
disclose the nature of the interest in advance of any consideration of the matter.

Meetings of the
Board.
Resignation of a
member.
Disclosure of
interests.

8 (2) Where a member discloses an interest under this section

(a) the disclosure shall be recorded in the minutes of the meeting; and
(b) the member shall not, unless the Board otherwise determines

(i) be present during any deliberations by the Board on that matter;
or
(ii) take part in any decision of the Board relating to the matter.

9. A member who is not a public officer may be paid such stipend as determined
by the Minister, acting on the advice of the Minister of Finance.

PART III
REGISTRATION OF NON-PROFIT ORGANISATIONS

10. There shall be a Registrar of non-profit organisations who shall be a public
officer designated by the Minister.

11. (1) A person shall not operate a non-profit organisation in the Virgin Islands
unless the organisation is registered under this Act.

(2) A person who contravenes this section commits an offence and is
liable on summary conviction to a fine not exceeding ten thousand dollars or
imprisonment for a term not exceeding six months, or both.

12. (1) An application for registration shall be submitted to the Board through the
Registrar, in the form set out in Schedule 1.

(2) An application under subsection (1) shall be

(a) signed by a person acting on behalf of the organisation; and

(b) accompanied by
(i) a copy of the constitutional documents of the organisation;
(ii) a statement of the purpose, objectives and activities of the
organisation; and
(iii) the fee prescribed in Schedule 2;

(c) any other document or information pertaining to the registration of
the organisation, as the Board may reasonably require.
(3) The constitutional documents of the organisation shall include
(a) the name of the organisation;
(b) the officers of the organisation;
(c) the manner of electing the governing body of the
Fees for
members.
Registrar.
Requirement to
register.
Application for
registration.
Schedule 1
Schedule 2

9 organisation;
(c) the organisational structure of the organisation;
(d) the duties and powers of the governing body;
(e) provisions limiting the objects of the organisation to
(i) pursue solely or primarily charitable or non-profit
purposes and requiring the organisation to apply its
income primarily
to promoting those purposes, and
(ii) prohibit the organisation from distributing any part
of the dividends generated to members or
shareholders.

(4) The Board shall, within thirty working days from the date of
receipt of an application and upon being satisfied that the application is in order
and complies with this Act and any regulations made under the Act, approve the
application.

(5) A person who knowingly provides false information on
registration commits an offence and is liable on summary conviction to a fine of
five thousand dollars or imprisonment for a term not exceeding one year, or both.

13. (1) A certificate of registration issued under this Act is valid for a
period of one year from the date of issue.
(2) An application for the renewal of a certificate of registration
shall be made no later than one month after the certificate expires.
(3) A certificate issued under this Act may be renewed upon
application in the form prescribed in Schedule 1, and upon payment of the fee
prescribed in Schedule 2 and on the Board being satisfied that the applicant
complied with the provisions of this Act.
(4) An organisation that submits an application for renewal may
continue to operate until a decision is made by the Board.

14. (1) The Board may, refuse to register or renew the registration of a
non-profit organisation

(a) if the application for registration does not comply with the
requirements of this Act or any regulations made under it;

(b) where the Board determines that

(i) the organisation does not qualify to be an organisation
within the meaning of this Act;
Duration of
registration.
Schedule 2 Schedule 1
Power to grant
or renew
registration.

10 (ii) it is contrary to the public interest for the organisation
to be registered;

(c) where on the advice of the Agency it determines that the
organisation is used for financing terrorism or money
laundering or it is intended or likely to be used for financing
terrorism or money laundering; or

(d) where the organisation, having been previously registered
under this Act has been deregistered under section 15.

(2) Where the Board approves the registration, or renewal of registration of
an organisation pursuant to this Act, the Registrar shall register the organisation in
the register and issue a certificate of registration in the prescribed form.
(3) For the purposes of subsection (1)(c), it does not matter whether the
organisation is aware that it is being used or has been used, for financing
terrorism or money laundering.

(4) An organisation may appeal to the Minister against the decision of the
Board under subsection (1) within twenty-one days of receipt of notice of the
decision of the Board.

(5) The Minister shall, after hearing the appeal

(a) affirm the decision;
(b) vary the decision; or
(c) set aside the decision appealed against and remit the matter
concerned for reconsideration by the Board with such direction as
the Minister may consider fit.

15. (1) The Board

(a) shall deregister a non-profit organisation where

(i) the organisation has contravened any provision of this Act or
the relevant legislation;
(ii) subject to subsection (2), a person authorised on behalf of the
organisation requests in writing that the organisation be
deregistered;
(iii) the organisation no longer exists or is not carrying out and is
not likely to carry out, the activities for which it was
registered;

Deregistration of
non-profit
organisations.

11 (b) may deregister an organisation where the Board considers it in
the public interest, and shall only take into account matters that
suggest that the organisation is being used, or may be used, for,
or to assist in, the financing of terrorism or money laundering.

(2) An organisation that fails to renew its registration under this Act, for a
period of at least two consecutive years, shall be deregistered for the purposes of
subsection (1)(a)(iii).

(3) The Board shall not deregister a non-profit organisation at the request
of the authorised person referred to under subsection (1)(a)(ii) where the Board
considers that deregistration would hinder the Agency in the exercise of its
functions.

(4) The Board shall, before deregistering an organisation under this
section, issue a written notice to the organisation stating

(a) the grounds upon which it intends to deregister the organisation;
and

(b) that unless the organisation, by written notice, shows good
reason why it should not be deregistered, it will be deregistered
on a date not less than thirty days after the date of the notice.

(5) The Registrar shall upon deregistration of an organisation under this
Act
(a) cancel the registration if it is still valid; and
(b) amend the register accordingly.

16. (1) The Registrar shall maintain a register of all non-profit organisations
registered in accordance with this Act.

(2) The Register shall include
(a) the name, address in the Virgin Islands and telephone number of
the organisation;

(b) the purpose, objectives and activities of the organisation;

(c) the identity of persons who are in control of or direct the
activities of the organisation; and

(d) such other information as the Board considers appropriate.

(3) The register shall be open to inspection, at the office of the Registrar by
the members of the public, during regular working hours.
(4) The Registrar shall forward to the Agency a list of all non-profit
Register of non-
profit
organisations.

12 organisations registered or deregistered under this Act and shall notify the
Agency of any changes to the list.

17. The Registrar shall publish annually, the names of registered non-profit
organisations, in the Gazette and in at least one newspaper circulating in the
Territory and where applicable a list of organisations which were deregistered.

PART IV
SUPERVISION AND MONITORING OF NON-PROFIT
ORGANISATIONS

18. (1) The Agency shall be responsible for the supervision and monitoring of
non-profit organisations in the Virgin Islands and shall

(a) ensure compliance by organisations with requirements of this Act
and the relevant legislation;

(b) monitor the effectiveness of the relevant legislation in
(i) providing for the protection of organisations from being
used for terrorist financing and money laundering; and

(ii) ensuring compliance by the Virgin Islands with FATF
recommendations as they apply to organisations;

(c) undertake periodic reviews of the non-profit organisations sector
in the Virgin Islands for the purposes of
(i) identifying the features and types of organisations that
are at risk of being used for terrorist financing or money
laundering; and
(ii) determining whether an organisation is being used or
has been used for terrorist financing or money
laundering;

(d) undertake outreach to non-profit organisations with the objective
of protecting the non-profit organisations sector in the Virgin
Islands from being used for terrorist financing and money
laundering;

(e) make recommendations to the Board where it determines that an
organisation is used for, or is likely to be used for, financing
terrorism or money laundering;

(f) make recommendations to the Minister on any matter relating to
non-profit organisations; and
Publication of
non-profit
or
ganisations.
Supervisory
role of the
Agency.

13
(g) discharge such other functions as may be assigned to it under this
Act.

(2) A periodic review carried out under subsection (1)(c) may include an
audit of the accounts of an organisation.

(3) The outreach activities referred to in subsection (1)(d) shall include

(a) raising awareness of organisations concerning the risks of terrorist
financing, money laundering and the measures available to protect
against such activities; and

(b) promoting transparency, accountability, integrity and public
confidence in the administration and management of
organisations.

19. For the purposes of monitoring compliance by a non-profit organisation, the
Agency may, with or without notice, where it reasonably believes that there is a
risk of terrorist financing or money laundering activities being carried out by an
organisation, have the power to enter the premises of the organisation to inspect
records and take copies or extracts of the records relevant to the performance of
its functions.

20. (1) For purposes of performing its functions under this Act the Agency may,
institute an inquiry with respect to any non-profit organisation where it
reasonably believes that there is a risk of terrorist financing or money laundering
activities being carried out by, or through the organisation.

(2) The Agency may by written notice, direct any person who controls or
directs the activities of the organisation to provide

(a) specified information, or
(b) the Agency with any or all of the records the organisation is
required to keep under section 23,

which relate to the organisation and which are necessary to enable the Agency to
discharge its functions under this section.

(3) A notice given under subsection (2) shall, in addition to specifying the
records which the organisation is required to produce, specify

(a) the period within which the records are to be produced;
Power to enter
premises and
inspect records.
Power to
institute inquiry.

14 and
(b) the place where the records are to be produced.

(4) The Agency may require the person who produced the records or a
representative of the organisation to provide an explanation of the records.

(5) The Agency may retain original records of the organisation for a period
not exceeding one year or such longer period as the Court may, on the application
of the Agency, specify.

(6) A disclosure of records under this section shall not be treated as a
breach of any law or agreement restricting the disclosure of information and shall
not give rise to civil proceedings.

(7) For the purposes of the inquiry, evidence may be taken on oath and the
person conducting the inquiry may for that purpose administer oaths or instead of
administering an oath require the person examined to make and subscribe a
declaration of the truth of the matters about which he or she is examined.

(8) A person who

(a) does not comply with a notice issued under subsection (2);

(b) is required to provide an explanation of any records under this
section, who without reasonable excuse, fails to provide the
explanation,

commits an offence and is liable to the penalty specified in Schedule 3.

21. A person who

(a) deliberately provides inaccurate information to the Agency which
information is purported to be in compliance with a requirement
imposed by or under this Act,

(b) alters, suppresses, conceals or destroys a document that he or she is
required under this Act to keep or produce to the Agency,

(c) withholds information when requested by the Agency to produce such
information or fails to discharge a duty imposed by or under this Act,

commits an offence and is liable to the penalty specified in Schedule 3.

PART V
OBLIGATIONS OF REGISTERED NON-PROFIT ORGANISATIONS

Schedule 3
Giving
inaccurate or
misleading
information or
withholding of
information.
Schedule 3

15 22. (1) A non-profit organisation shall, where there is any change in
information provided to the Board at the time of registration, issue written
notification of the change to the Board within fourteen days.

(2) Any change required under this section includes changes to the
principal place of business and the purposes, objectives and activities of the
organisation.

(3) An organisation that fails to give notice under subsection (1) commits
an offence and is liable to the penalty specified in Schedule 3.

23. (1) A non-profit organisation shall keep at its principal place of operation in
the Virgin Islands records that are sufficient

(a) to show

(i) its purposes, objectives and activities; and
(ii) the identity of persons who control or direct its
activities including as appropriate, senior officers,
board members, directors and trustees;
(b) to show and explain the organisations’ transactions, within
and outside the Virgin Islands and that are sufficiently
detailed to establish that its funds have been used in a manner
consistent with its purposes, objectives and activities;

(c) to show the sources of its gross annual income;

to enable its financial position to be determined with reasonable accuracy.

(2) For the purposes of this section, section 24 and paragraphs (d) and (e)
of the definition of “ gross annual income” in section 2, a non-profit organisation
registered pursuant to this Act shall comply with the Anti-money Laundering
Regulations, 2008 and the Anti-money Laundering and Terrorist Financing Code
of Practice, 2008.

(3) Where a non-profit organisation has five or fewer employees, the
Board may exempt that organisation from the requirement to appoint a Money
Laundering Reporting Officer pursuant to regulation 13 of the Anti-money
Laundering Regulations, and the provisions of the Anti-money Laundering and
Terrorist Financing Code of Practice in relation to that organisation shall, subject
to sub-section (3), be disapplied.

(4) Any exemption from appointing a Money Laundering Reporting
Officer shall not be construed as exempting the non-profit organisation from
performing the Money Laundering Reporting Officer functions.
Notification of
changes.
Schedule 3
Maintenance of
records.
S.I. No 13 of
2008 S.I. No 12 of
2008
S.I. No 12 of
2008

16
(5) An organisation shall keep the records specified in subsection (1) for a
period of at least five years after the completion of the transaction to which they
relate.

(6) An organisation that contravenes this section commits an offence and
is liable to the penalty specified in Schedule 3.

24. (1) A non-profit organisation shall prepare and submit annually to the
Board, financial statements of the organisations’ revenue and expenditure.

(2) The organisation shall submit

(a) financial statements, certified by an accountant,
where the gross annual income of the organisation exceeds
two hundred fifty thousand dollars;

(b) financial statements, in a form approved by the
Board, where the gross annual income of the organisation
does not exceed two hundred fifty thousand dollars,

(3) The financial statements required by subsection (2) shall include
(a) a list of donors who have donated in excess of ten
thousand dollars as a single donation or cumulatively, during
the year;
(b) a breakdown of any funds raised, or donations received, and
disbursed, by any association of persons operating under
and subject to the control of the organisation.

(4) The statements required by subsection (2)(a) shall be submitted, within
six months after the end of the year, unless prior written approval of an extension
has been granted by the Board.

(5) A financial statement prepared pursuant to this section shall be
prepared in accordance with generally accepted accounting standards or such
other accounting standards as may be prescribed.

PART VI
MISCELLANEOUS

25. (1) The Agency may, subject to subsection (2), impose an administrative
penalty on a person who fails to comply with a requirement imposed by this Act.

S.I. No 13 of
2008
Schedule 3
Administrative
penalties.
Accounts.

17 (2) The Agency shall not impose a penalty if it is satisfied that the person
took all reasonable steps and exercised due diligence to ensure that the
requirement would be complied with.

(3) The Agency, in deciding whether to impose a penalty on a person under
subsection (1), shall take into account the matters specified in section 28.

(4) A person who commits the offences outlined in Column 1 of Schedule 3
is liable to the penalties prescribed in Column 3 of Schedule 3.

(5) Where a person fails to comply with more than one provision of this Act
and becomes liable to more than one penalty, the Agency may compound the
penalties.

(6) The Agency may recover a penalty imposed by virtue of this section in
civil proceedings as a debt.
(7) A penalty imposed by virtue of this section shall be paid into the
Consolidated Fund.

26. (1) The Agency shall, before imposing penalty under section 25, give
written notice to the person stating

(a) the intention to impose and the reason for the intention to
impose the penalty;

(b) the amount of the proposed penalty; and
(c) the entitlement of the person to make representation to the
Agency in accordance with subsection (2).

(2) Where a person receives a penalty notice, that person shall, within
twenty-one days from the date of the notice, make representation to the Agency as
to why he or she should not be required to pay the penalty or as to why the
proposed penalty should be reduced.

(3) The Agency may at any time prior to the issuing of a penalty notice under
subsection (1), withdraw the notice and substitute a new notice stating a different
penalty.

(4) The Agency shall notify the person of its decision under subsection (3)
and, where it varies the penalty, of the further steps (if any) it has taken in relation
to the person.

(5) Before imposing an administrative penalty on a person, the Agency shall
consider any representations received under subsection (2).

Schedule 3 Schedule 3
Procedure to be
followed by
Agency
.

18 (6) Subject to subsection (7), a person that receives a penalty notice shall pay
the penalty stated in the notice to the Agency within such period as the Agency
may determine.

(7) The Agency may agree to the payment of an administrative penalty in
instalments over such period of time as it considers appropriate.

27. In determining the administrative penalty to be imposed on a person, the
Agency

(a) shall take into account the following matters:

(i) the nature and seriousness of the contravention;
(ii) whether the person has previously contravened the Act or
any relevant legislation;
(iii) whether the contravention was caused by the negligence
of the person; and
(iv) the ability of the person to pay the penalty, including any
gain resulting to the person as a result of the
contravention; and

(b) may take into account such other matters as it considers
appropriate.

28. (1) A person who is aggrieved by a decision of the Agency imposing a
penalty under section 26, may, within fourteen days of receiving the penalty
notice, appeal to the Appeal Board.

(2) An appeal of a decision of the Agency to impose a penalty does not
operate as a stay on the obligation of the person to pay the penalty.

(3) The Appeal Board shall, after hearing an appeal,

(a) affirm the decision appealed against;
(b) vary the decision appealed against; or
(c) set aside the decision appealed against and remit the matter
concerned for reconsideration by the Agency in accordance with
such direction as the Appeal Board may consider fit.

(4) For the purposes of this section, “Appeal Board” means the Board
of the Agency established under section 3 (2) of the Financial Investigation
Agency Act, 2003.

Determination of
appropriate
penalty.
Appeal against
an administrative
penalty.
No.19 2003

19 29. (1) The Agency shall not issue a penalty notice to a person with respect to
a contravention after the end of the period of two years commencing on the date
that the Agency first knew of the contravention.

(2) For the purposes of subsection (1), the Agency is deemed to know of a
contravention if it has information from which the contravention can reasonably
be inferred.

30. (1) A person shall keep confidential all information relating to a non-
profit organisation which he or she has acquired in his or her capacity as an
employee of the Agency or as a member of the Board, except as required for an
inquiry in respect of any matter under this Act or on the order of a court of
competent jurisdiction.

(2) A person who contravenes subsection (1) commits and offence an is
liable on summary conviction to a fine of up to ten thousand dollars.

31. (1) A non-profit organisation which is in existence at the commencement
of this Act shall apply for a certificate of registration in accordance with the
provisions of this Act, within ninety days of the coming into force of this Act.

(2) For the avoidance of doubt, a Friendly Society registered under the
Friendly Society Act shall be deemed a non-profit organisation for the purposes of
this Act.

32. The Minister may, by Order, and after consultation with the Board and
with the approval of Cabinet, amend the Schedules to this Act in such manner as
he or she considers necessary.

33. This Act does not apply to
(a) an organisation that is licensed under the Banks and Trust
Companies Act, 1990;
(b) any charitable or non-charitable purpose trust, where the trustee
is licensed under the Banks and Trust Companies Act, 1990.

34. Where an offence under this Act is committed by a body corporate, and
is proved to have been committed with the consent or connivance of, or to be
attributable to neglect on the part of, any director, manager, secretary or other
similar officer of that body corporate, or a person purporting to act in that
capacity, the person as well as the body corporate each commits the offence and
are liable to be proceeded against and punished accordingly.

35. The Minister may, after consultation with the Board and with the
approval of Cabinet, make Regulations for
Limitation
period.
Confidentiality.
Transitional
provisions.
Cap 268
Amendment of
Schedules.
Regulations. Offences by
bodies
corporate.

20
(a) the format of any reports and financial returns to be
submitted by an organisation;
(b) prescribing anything that is required to be prescribed by this
Act;
(c) generally for the purposes of carrying this Act into effect.

Non-
applicability. No. 9 of 1990

21
SCHEDULE 1
[Sections 12 (1)]

REGISTRATION FORM

Non-Profit Organisation (NPO)
Application for Registration
(In Accordance with the NPO Act, 2012)

(
Tick One) Is this a…
_____ New Application (complete sections 1 through 3 only) ($50 or $100)
_____ Renewal Application (complete all sections) ($50 or $100)
_____ Change Information Application (Section 1 and all applicable sections) ($0)

1. ORGANISATION’S CONTACT DETAILS DATE:
Name ( or Proposed Name ) of NPO

Contact Details
for the
Organisation
Office Telephone Cell Phone Email

Address Website (if any)

Contact Person Name Position in the Organisation

Telephone (if different from above)

2. ORGANISATION’S OPERATING DETAILS
NPO Mission Statement NPO Vision Statement

22

In full detail, please describe the PURPOSE (or intended purpose) of the NPO:

In full detail, please describe the ACTIVITIES (or intended activities) of the NPO:

Please provide a copy of the organisation’s CONSTITUTION (or intended constitution) .

Is your Organisation incorporated? YES/NO

Does your Organisation have subsidiary Organisation(s)? YES/NO
(Example- Girls’ Brigades is a subsidiary organisation of the Methodist Church)

Name these Subsidiary Organisations:

1. _________________________ 9. ____________________________
2. _________________________ 10. ___________________________

23 3. _________________________ 11. ___________________________
4. _________________________ 12. ___________________________
5. __________________________ 13. ___________________________
6. _________________________ 14. ___________________________
7. __________________________ 15. ___________________________
8. _________________________ 16. ___________________________

NOTE: If your organisation has subsidiary organisations, in addition to completing sections 4-6 for your
organisation, please copy and complete sections 4-6 for each subsidiary organisation.

What are the criteria (s) for becoming a member?

Total Members ___________
# of Adults ___________
# of Children under 16 _____________ Please attach a sample of your parental
consent form.

Sample of proof of Membership
(circle and attach at least one)
• Membership Certificate/Card
• Official Letter given to Members
• Annual Membership Registration List
• Other __________________________________________________________

Names of Executive Body Date of Election:

President: _________________________

Vice President: _________________________

Treasurer: _________________________

Secretary: _________________________

Other: _________________________
Note: Any Changes to the
Executive Body must be
reported within 14 days of
the change to avoid
penalty fee.

How often does the organisation have the following meetings?

24
Membership Meeting: ___________________________

Executive Body: ___________________________

Board of Directors: ___________________________

3. ORGANISATION’S EXPENDITURE REPORT
Organisations that earn $250,000 or more are asked to attach a certified copy of their financial statements
in addition to completing sections 3-6 of this form.

A. When is the organisation’s Financial Year End? _________________________

Is there a first time Membership Fee? YES/NO Yes, how much?
_________

Is there an Annual Membership Fee? YES/NO Yes, how much?
_________
Does your organisation have operational Costs? YES/NO
If yes, please complete the fields below.
Name of Operational Cost
(All non-income payments, ex. Rent, gas, electricity
etc),
Total Annual Cost Incurred
1.

2.
3.

4.

5.

6.

7.

8.

25
9.

10.

11.

12.

13.

14.

15.

16.

17.

18.

Please attach a separate sheet of paper if additional space is required.
3B. Are any wages, salaries, and/or personal emoluments paid by the organisation?
YES/NO
If yes, please complete the fields below.
Name Position Hourly Wage/Annual
Salary/Personal emolument
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.

26 16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
What percentage % of funds raised is used towards wages, salaries, and/or personal
emoluments? ____________

Please attach a separate sheet of paper if additional space is required

4. REPORT ON FUNDS RAISED ANNUALLY
NOTE: If an activity, for example a bake sale is held more than once in the period under review; indicate
the total funds collected from all sales instead of listing individually.

Total funds
raised in your
last calendar
year? Total Amount
Total amount raised
from within the BVI
Total amount raised
from outside the BVI

Details of Fundraising
Date Event(s) Purpose of Event Amount Raised
1.

2.

3.

4.

5.
6.
7.
8.

27 9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
Please attach a separate sheet of paper if additional space is required

5. FUNDS RECEIVED THROUGH DONATIONS
If $10,000 is donated by one individual at one time or collectively throughout the year, the name of the
donor(s) should be listed in this section.

Total funds
received
through
donation in
your last
calendar year?
Total Amount
Total amount
received through
donations within the
BVI
Total amount received
through donations
outside the BVI

Details of Donations

Date Reason for
donation
Name of Donor Amount Donated

1.

2.

3.

4.

5.

6.

7.

28

8.

9.

10.

11.

12.

13.

14.

15.

16.

Please attach a separate sheet of paper if additional space is required

6. REPORT ON FUNDS DISTRIBUTED ANNUALLY

Total funds
distributed in
your last
calendar year? Total Amount
Total amount
distributed within the
BVI
Total amount distributed
outside the BVI

Details of Distributions
Date

Event Purpose Amount Distributed
1.

2.

3.

4.
5.

6.
7.

29 8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
Please attach a separate sheet of paper if additional space is required

Annual Earning – United States Dollar
NOTE:
“Funds” means assets of every kind, whether tangible or intangible, movable or immovable. Example,
money, property, vehicles, furniture, artwork, etc.

“Raised” , in respect to the funds of an NPO, includes funds given to the NPO but does not include-
a. income earned on the funds of the NPO, i.e. bank interest etc; or
b. new or remaining members fees.

“Distributed”, in respect of the funds of an NPO, does not include the disbursement of funds paid to the
NPO by person to become or remain members of the NPO if those funds only benefits members of the
NPO

Summary of Annual Financial Report
Total Funds Raised ____________________
(section 4)
Plus +
Total Funds by Donation ____________________
(section 5)
____________________________
Equals
TOTAL ANNUAL INCOME ____________________

30 Total Operational Cost ____________________
(section 3A)
Plus +
Total Emoluments
____________________
(section 3B)
Plus +
Total Funds Distributed ____________________
(section 6)
___________________________
Equals
TOTAL ANNUAL EXPENDITURE ____________________

TOTAL ANNUAL INCOME _____________________
Minus –
TOTAL ANNUAL EXPENDITURE ____________________
____________________________
Equals
TOTAL YEAR END BALANCE ____________________

Please use this area to provide any additional information you think might
help the Board when reviewing your application.

I ______________________________ certify that the information
provided in this application is true. I understand that false or incomplete
statements are grounds for refusal of registration.
I also understand that knowingly providing false information on this
registration form is an offence under section 12(5) of the Non-profit

31 Organisation Act 2012 and if convicted, I may be liable to a fine $5,000
dollars or to imprisonment for a term not exceeding one year, or both.

Signature ________________________________

Name in BLOCK Letters ________________________________
Position Held in NPO ________________________________
Date ________________________________

OFFICE USE ONLY

32 SCHEDULE 2
[Sections 12 (2),
13 (2)]

FEES
(1) Application for registration
(a) for newly formed organisations $100.00

(b) for existing organisations
(i) where gross annual income does $50.00
not exceed two hundred and fifty
thousand dollars
(ii) where gross annual income exceeds $100.00
two hundred and fifty thousand dollars

(2) Application for renewal of registration

(a) where gross annual income does not $50.00
exceed two hundred and fifty dollars
(b) where gross annual income exceeds $100.00
two hundred and fifty thousand dollars

(3) to replace a certificate of registration or $25.00
for an additional certificate of registration

(4) for a certified copy of a document $25.00

(5) for an uncertified copy of a document $10.00

33 SCHEDULE 3

ADMINISTRATIVE PENALTIES

Section of
Act
Breached Type of Breach Penalty Range
Section 20 (a) Failure to comply with Notice as required by
the Act where the Agency decides to institute
an inquiry

(b) Failure to provide explanation of records
produced, where required to do so

$3,000 up to
$20,000

$3,000 up to
$20,000

Section 21 Supplying inaccurate or misleading information or
withholding of information $3,000 up to
$20,000
Section 22 Failure to notify the Board of changes to registration
information $1,000 up to
$10,000
Section 23 Failure to maintain any records required to be
maintained $1,000 up to
$10,000

Passed by the House of Assembly this 11
th day of October, 2012.

Ingrid Moses-Scatliffe,
Speaker.

Phyllis Evans,
Clerk of the House of Assembly.

34 LEGAL REPORT

Non-profit organisations play an essential and complementary role in the social
and economic development of society. Their efforts complement the activity of
the government and business sectors in providing essential services, comfort and
hope to those in need. The ongoing international campaign against terrorist
financing has demonstrated that terrorist organisations exploit the non-profit
sector to raise funds, among other things.

The Government of the Virgin Islands recognises this fact and seeks to facilitate
the work and contribution of non-profit organisations through enactment of an
appropriate legal and regulatory framework that provides stability and certainty
for non-profit organisations and increases public confidence in the work and
programmes of such organisations. The Government of the Virgin Islands will
support initiatives that increase public understanding of the role and contributions
of non-profit organisations.

By creating an environment in which nonprofit organisations can flourish, and
freely and independently engage in activities for the benefit of the general public
the Government of the Virgin Islands seeks to increase the understanding of
philanthropy in the Virgin Islands, thereby promoting the betterment of Virgin
Islands society, while protecting the non-profit sector from terrorist abuse.

In 2012, the FATF published its revised International Standards on Combating
Money Laundering and the Financing of Terrorism and Proliferation. The FATF
Recommendations are used by more than 180 governments around the world to
guide their efforts to combat terrorist financing and money laundering and
provide a benchmark to assess each country’s terrorist financing and anti-money
laundering regime through a process of mutual evaluations.

Recommendations 8 of the FATF International Standards on Combating Money
Laundering and the Financing of Terrorism and Proliferation concerns non-profit
organisations. It requires countries to review the adequacy of laws and regulations
that relate to entities that can be abused for the financing of terrorism.

It is against this background that the proposed Non-Profit Organisations Act, 2012
is premised. The Act seeks to register and monitor the operations of non-profit
organisations in the Virgin Islands.

This Act consists of six Parts.

Part I provides for preliminary provisions. Section 1 provides for the short title
and commencement of the legislation. Section 2 deals with the definitions of
various terms for the purposes of the legislation.

35 Part II provides for the establishment of the non-profit organisation Registration
Board and the functions of the Board.

Section 3 provides for the establishment of a Non-profit Organisation Registration
Board and the membership of the Board which shall comprise seven persons
appointed by the Minister.

Section 4 provides for the functions of the Non-Profit Organisation Registration
Board.

Section 5 provides for the tenure of office of the members of the Board.

Section 6 provides for the meetings, quorum and conduct of meetings the Board.

Section 7 provides for the resignation of members of the Board other than ex
officio members.

Section 8 provides for a member of the Board to disclose any interest in a matter
to be decided by the Board in advance of any consideration of the matter.

Section 9 provides that members who are not public officers may be paid a
stipend as determined by the Minister, acting on the advice of the Minister of
Finance.

Part III of the Act provides for the registration of non-profit organisations.

Section 10 provides for a public officer to be designated the Registrar of non-
profit organisations in the Virgin Islands.

Section 11 requires non-profit organisations to register before they commence
operations in the Virgin Islands.

Section 12 provides non-profit organisations to apply to the Board, through the
Registrar, for registration. It would also provide for the documents to be lodged
with the application.

Section 13 provides for the duration and renewal of the certificate of registration.

Section 14 authorises the Board to refuse to register or renew the registration of a
non-profit organisation where the applicant does not comply with requirements of
the Act or where the organisation is being used, or likely to be used for financing
terrorism or money laundering. It also provides for an organisation to appeal to
the Minister, within twenty-one days, decisions of the Board.

Section 15 provides for deregistration of non-profit organisations by the Agency
where the non-profit organisation has contravened any provision of the law or

36 where a person authorised by the non-profit organisation requests the Agency to
deregister it.

Section 16 requires the Registrar to maintain a register of non-profit organisations
registered in accordance with the Act and to forward a list of all registered and
deregistered organisations to the Agency.

Section 17 provides for the Registrar to publish annually, the names of all
registered non-profit organisations as well as, the organisations which were
deregistered.

Part IV of the Act provides for the supervision and monitoring of non-profit
organisations.

Section 18 provides for the Financial Investigation Agency to be responsible for
the supervision and monitoring of non-profit organisations in the Territory, in so
doing Agency would monitor compliance by non-profit organisations with
registration requirements and the relevant legislation, as well as monitor the
effectiveness of the relevant legislation in protecting non-profit organisations
against use for terrorist financing.

Section 19 gives the Agency the power, where it reasonably believes that there is
a risk of terrorist financing or money laundering activities being carried out by an
organisation to enter the premises of a non-profit organisation to inspect records
and to take copies or extracts of the records which are relevant to the performance
of its functions.

Section 20 gives power to the Agency to institute an inquiry, for purposes of
carrying out its functions, where it reasonably believes that there is a risk of
terrorist financing or money laundering activities being carried out by the
organisation.

The Agency is authorised to require a person who directs or controls the activities
of a non-profit organisation to furnish specific information including the records
required to be kept under the Act, for the purpose of assessing the extent to which
a non-profit organisation is used or may be used in the future for terrorist
financing or money laundering.

Section 21 provides that a person who gives the Agency information that is false
or misleading or withholds relevant information from the Agency commits an
offence and is liable to pay a penalty.

Part V of the Act provides for the obligations of registered non-profit
organisations.
Section 22 requires organisations to notify the Board of any changes in
information provided to the Board at the time of registration.

37
Section 23 requires non-profit organisations to maintain records of its purposes,
objectives and activities, as well as financial records explaining its transactions
within and outside the Virgin Islands.

Section 24 provides for non-profit organisations to submit annual financial
statements to the Board and where the gross annual income of the organisation
exceeds two hundred-fifty thousand dollars the statements must be certified by a
qualified accountant.

Part VI of the Act deals with miscellaneous provisions.

Section 25 gives the Agency the power to impose administrative penalties for
failure to comply with the requirements of this Act.

Section 26 provides for the procedure to be followed by the Agency before
imposing administrative penalties.

Section 27 provides for the matters to be taken into account in determining the
appropriate administrative penalty.

Section 28 provides for an appeal to be made to the Minister where a person is
aggrieved by a decision of the Agency to impose an administrative penalty.

Section 29 provides for a limitation period within which a penalty notice may be
issued.

Section 30 provides for employees of the Agency and members of the Board to
keep confidential any information relating to a non-profit organisation, except as
required by a court or for the purposes of an inquiry under this Act.

Section 31 deals with transitional provisions. It would provide for existing non-
profit organisations to register within ninety days of the Act coming into force. It
would also provide for registered Friendly Societies to be treated as non-profit
organisations for the purposes of this Act.

Section 32 provides for the Minister, after consultation with the Board, and on the
approval of Cabinet to amend the schedules to the Act by Order.

Section 33 provides for the non-applicability of this Act to organisations licensed
under the Banks and Trust Companies Act.

Section 34 provides a body corporate as well as officers of a body corporate to be
liable for offence committed under the Act.

38 Section 35 gives the Minister power to make regulations for the better carrying
into effect the provisions of the Act.

This Act was introduced in the House of Assembly on the 13
th day of September,
2012, taken through its remaining stages and passed on the 11th day of October,
2012.

In my opinion, His Excellency the Governor may properly assent to this Act in
the name and on behalf of Her Majesty.

Dr. Christopher P. Malcolm
Attorney General

Date: October, 2012