Offshore

The British Virgin Islands' inclusion on the EU's anti-money laundering high-risk country list creates specific compliance obligations for BVI funds marketed under AIFMD, while having limited broader impact on BVI vehicles.

The Cayman Islands Grand Court has introduced Rule 7A, granting express powers for pre-action discovery and non-party discovery in civil proceedings. This procedural reform addresses significant gaps in the court's framework by providing a codified mechanism for obtaining documents before litigation commences and from non-parties during ongoing proceedings.

The Bermuda Economic Substance Regime has undergone significant administrative changes with the transfer of oversight from the Registrar of Companies to the Bermuda Corporate Income Tax Agency. Entities with a December 31, 2025 financial year-end face a June 30, 2026 filing deadline for their Economic Substance Declaration Forms, with new enforcement powers and penalty structures now in effect.

The British Virgin Islands Commercial Court has issued a significant ruling clarifying that liquidators should have broad powers to act without prior court approval, marking a departure from longstanding practice. Justice Mithani's decision in Jin Yao Holdings Ltd v Forever Winner International Ltd challenges the routine inclusion of sanction requirements in liquidation orders, restoring flexibility to insolvency practitioners while maintaining appropriate judicial oversight.