BVI Prepares for CRS 2.0
The Government of the Virgin Islands and the International Tax Authority (ITA) have confirmed that the OECD’s 2023 amendments to the Common Reporting Standard (CRS 2.0) will take effect locally from 1 January 2026. Financial institutions must collect the new information by the end of 2026 and submit filings to the ITA by May 2027, while the Territory also prepares for Crypto-Asset Reporting Framework (CARF) exchanges beginning in 2028.
The Government of the Virgin Islands has reiterated its commitment to implement the Organisation for Economic Co-operation and Development’s (OECD) 2023 amendments to the Common Reporting Standard — commonly called CRS 2.0 — with effect from 1 January 2026, the Government and the International Tax Authority (ITA) said in a recent notice.
The Territory was an early adopter of CRS: the CRS law was enacted in 2015 and took effect on 1 January 2016, and the Virgin Islands began exchanging financial account information under the original standard in September 2017. The Mutual Legal Assistance (Tax Matters) Act (Revised Edition 2020) confirms that the CRS, its Commentary and later amendments apply in the Virgin Islands (sections 25 and 26), providing the legal basis for CRS 2.0 implementation locally, the Government statement notes.
Under the planned timetable announced by the ITA, financial institutions operating in the Virgin Islands must begin collecting the additional data required under CRS 2.0 through the remainder of 2026 and ensure the new information is submitted to the ITA by May 2027. The ITA and Government stress that participating jurisdictions worldwide have begun implementing the OECD amendments following their finalisation in 2023.
Key changes under CRS 2.0 that will affect banks, e-money providers, custody services and other financial intermediaries include an expanded definition of financial accounts to cover specified electronic money products and central bank digital currencies (CBDCs), and a broader definition of financial assets to capture crypto-assets held in custody, certain derivatives and indirect crypto-asset investments.
CRS 2.0 also tightens due diligence requirements. Financial institutions will be required to validate self-certifications for account holders and controlling persons more robustly and may rely more explicitly on AML/KYC procedures to determine controlling persons. The amendments introduce exceptional due diligence where a valid self-certification cannot be obtained, clarify that certain capital contribution accounts may qualify as excluded accounts, and create a non-reporting financial institution category for genuine charities.
The Virgin Islands has also committed to the OECD’s Crypto-Asset Reporting Framework (CARF); exchanges under CARF are expected to begin in 2028, a separate timeline from CRS 2.0. The ITA advises entities involved in crypto-asset activities to assess CARF applicability alongside CRS 2.0 preparations.
Financial firms are urged to review internal systems, customer onboarding, and AML/KYC procedures now to capture the additional data fields and validation controls required. The OECD amendments and related guidance are published by the ITA and are available on the ITA website. For queries, the ITA can be contacted at info@bviita.vg or by telephone at +1-284-394-4415, and Moreen Barry, Head of Support Services at the ITA, is listed as a point of contact.
The Government has also provided media contact details for international enquiries and encourages affected businesses to use the ITA resources to ensure timely compliance with the new reporting obligations.
Primary source: BVI Government