Trust business is defined in section 2(1) of the Banks and Trust Companies Act (Revised Edition 2020) (the BVI BTCA) to mean the business of:

• acting as or arranging for another person to act as a professional trustee, protector or administrator of a trust or settlement or performing the equivalent function for another form of legal arrangement;
• managing or administering any trust or settlement; or
• acting, in relation to a Class I trust licence, as trustee under wills and settlements and as executor and administrator of deceased persons.

Trust business is defined in section 2 of the Banks and Trust Companies Act (2025 Revision) (the Cayman BTCA) to mean the business of acting as a trustee, executor, or administrator.

The BVI BTCA and associated legislation, namely the Regulatory Code (Revised Edition 2020) and the Financial Services (Fees) Regulation (Revised Edition 2020).

The Cayman BTCA and associated legislation, namely the Banks and Trust Companies (Licence Applications and Fees) (2021 Revision) and the various Statements of Guidance.

Yes. Under section 3(2) of the BVI BTCA, no company shall carry on any kind of trust business in or from within the BVI unless the company holds a valid licence authorising it to carry on that kind of trust business.

Section 3(4) of the BVI BTCA provides that a person who contravenes section 3(2) commits an offence and is liable on summary conviction to a fine not exceeding US$50,000 or to imprisonment for a term not exceeding two years or to both.

Yes. Under section 5(2) of the Cayman BTCA, no trust company may carry on trust business from within the Cayman Islands, whether such business is carried on in the Cayman Islands, unless it is in possession of a valid licence granted by the Cayman Islands Monetary Authority (CIMA) authorising it to carry on such business.

Section 5(5) of the Cayman BTCA provides that a person who contravenes section 5(2) commits and offence and is liable on summary conviction to a fine of KYD$10,000 (USD$12,014.11) and to imprisonment for one year and in the case of a continuing offence to a fine of CI$1,000 (US$1,201.41) for each day during which the offence continues.

The following are available in the BVI:

• Class I: allows the holder to conduct trust business and company management business[2];
• Class II: allows the holder to carry on trust business only;
• Restricted Class II: allows the holder to carry on trust business for up to 50 trusts named in a sworn undertaking;
• Class III: allows the holder to carry on company management business only;
• Restricted Class III: allows the holder to carry on company management business that is only limited to the provision of directors and officers and nominee shareholders for BVI and non-BVI companies;
• Class IV: allows the holder to carry on trust business and company management business by family offices and other closely held groups; and
• Class V: allows the holder to carry on company management business only by family and other closely held groups.

The following are available:

• Trust licence: allows the holder to carry on trust business;
• Trust licence (restricted): allows the holder to undertake trust business only for persons listed in an undertaking accompanying the application;
• Nominee (Trust) licence: allows the holder to act solely as the nominee of a trust licensee, being the wholly owned subsidiary of that licensee;
• Registration of a controlled subsidiary – allows the registrant to provide, without a licence, trust services including the issuing of debt instruments or any other trust business connected with the trust business of its parent that holds a trust licence; and
• Registration of a private trust company – allows the registrant to provide trust services to “connected persons” (as defined in the Private Trust Companies Regulations).

The Prudential Division of the BVI Financial Services Commission.

The Fiduciary Services Division of CIMA.

Yes, for example:

• the Financial Investigation Agency;
• the International Tax Authority;
• the Attorney-General;
• the Director of Public Prosecutions;
• the Governor; and
• the Royal Virgin Islands Police Force.

Yes, for example:

• the Financial Reporting Authority;
• the Tax Information Authority;
• the Attorney-General;
• the Director of Public Prosecutions;
• the Governor; and
• the Royal Cayman Islands Police Force.

No. A person who is licensed under the BVI BTCA is not required to obtain a licence under the Business Professions and Trade Licences Act (Revised Edition 2020).

No.

Yes.

• In the case of Class I and III trust licences, these licences require there to be substantial presence on the ground in the BVI. This will include having premises, personnel and expenditure taking place in the BVI;
• Class II, Restricted Class II do not require permanent physical presence;
• There is no specific guidance, as yet, in terms of Classes IV and V.

All types of licences requires that, apart from having the registered office/registered agent, a principal office must be in the BVI. The principal office will need to be a physical space.

Yes. The trust licence holder will need to have physical space in the Cayman Islands.

All types of licences require that, apart from having the registered office function in the Cayman Islands, they shall have a principal office in the Cayman Islands.

• A minimum of two executive directors who can be based anywhere in the world. These directors must be natural persons as corporate directors are not permitted;
• A non-executive, BVI resident director;
• Two authorised agents who must be natural persons and based in the BVI;
• At least one compliance officer and money laundering reporting officer who can be a natural person undertaking both functions or a corporate compliance officer;[3]
• For Class I and III trust licences, they will need an internal audit function; and
• Depending on the type of licence being applied for, “on the ground” staff eg managers, office staff, etc.

• A minimum of two executive directors who can be based anywhere in the world and these directors must be natural persons as corporate directors are not permitted;
• A non-executive, Cayman Islands resident director;
• Two authorised agents who must be natural persons and based in the Cayman Islands
• An anti-money laundering compliance officer;
• A money laundering compliance officer;
• A deputy money laundering compliance officer; and
• Depending on the type of licence being applied for, “on the ground” staff eg managers, office staff, etc.

Yes. The financial auditor will be responsible for reviewing, preparing and filing the annual audited financial statements within six months of the end of the financial year to which they relate.

Yes. The financial auditor will be responsible for reviewing, preparing and filing the annual audited financial statements within six months of the end of the financial year to which they relate.

Yes. Class I, II, and III trust licences will need to have US$250,000 contributed capital. This capital will need to be unencumbered at all times.

The Class I and III trust licences will also need to pay a minimum regulatory deposit of between US$30,000 to US$80,000 depending on the number of companies under administration. The Class II trust licence holder will need to pay US$20,000.

Yes. Essentially:

• Except in the case of a restricted trust licence or a nominee trust licence, a licence will not be granted unless the trust company has not less than CI$400,000 (US$480,345.70);
• In the case of a restricted trust licence not less than CI$20,000 (USD$20,028.22); and
• A nominee trust licence a guarantee will need to be provided from the licensee of which it is a wholly-owned subsidiary for liabilities of up to CI$200,000 (USD$240,282.20).

Yes. All directors, senior managers, ultimate beneficial owners must meet the fit and proper standards to be approved into their respective roles.

Yes. All directors, senior managers, ultimate beneficial owners must meet the fit and proper standards to be approved into their respective roles.

Yes. Trustee licences will need to comply with the requirements in the:

• Proceeds of Criminal Conduct Act (Revised Edition 2020), the Anti-Money Laundering Regulations (Revised Edition 2020), and the Anti-Money Laundering and Terrorist Financing Code of Conduct (Revised Edition 2020);
• The Proliferation Financing (Prohibition) Act 2021;
• The Counter-Terrorism Act 2021; and
• The UK and BVI sanctions regime together with any UN sanctions as the BVI is an overseas territory of the UK.

Yes. Trustee licences will need to comply with the requirements in the:

• Proceeds of Crime Act (Revised), the Anti-Money Laundering Regulations (Revised), and CIMA’s statement of guidance on AML);
• The Proliferation Financing (Prohibition) Act (Revised);
• The Terrorism Act (Revised); and
• The UK and Cayman Islands sanctions regime together with any UN sanctions as the Cayman Islands is an overseas territory of the UK.

Potentially, subject to bespoke analysis on individual cases.

Potentially, subject to bespoke analysis on individual cases

No. However, there may be annual reporting to the local tax regulator via the registered agent/registered office.

No. However, there is annual reporting to the Companies Registry via the registered office service provider.

Yes.

• Compliance officer reports;
• Annual fiduciary reports;
• Annual AML/CFT reports;
• Audited financial reports;
• Economic substance annual reports;
• Semi-annual reports;
• Internal audit reports;
• AEOI reports, where applicable;
• Annual employee training reports.

Yes.

• Audited financial reports;
• Prudential and statistical reports;
• AML/CFT reports;
• Economic substance annual reports;
• Semi-annual reports;
• Internal audit reports;
• AEOI reports, where applicable;
• Annual employee training reports.

Yes. However, there are some functions that are termed “core management functions” that cannot be outsourced. Any outsourcing must be subject to a written policy and agreements should be in place documenting the service that is outsourced.

Yes. Any outsourcing must be subject to a written policy and agreements should be in place documenting the service that is outsourced.

Yes.

Yes.

Yes.

Yes.

Yes. A minimum of US$5,000,000.

Yes. A licensee should obtain and maintain adequate professional indemnity insurance or have in place other appropriate arrangements to cover risks, in respect of trust business and such insurance or arrangements is subject to review by CIMA.

Yes. These will include, for example:

• Corporate governance;
• Internal strategies, policies, systems, and controls;
• Internal audit;
• Audit committee;
• Record keeping;
• Compliance;
• Outsourcing;
• Complaints;
• Reporting to the regulator.

Yes. These will include, for example:

• Recruitment and selection standards;
• Market conduct;
• Nature, accessibility, and retention of records;
• Net worth and liquidity standards;
• Cybersecurity;
• Marketing policies;
• Internal controls;
• Business continuity management.

A BVI business company incorporated under the BVI Business Companies Act (Revised Edition 2020).

A Cayman Islands ordinary resident company or an exempted company incorporated under the Companies Act (Revised 2023).

In practice, assuming a full and complete application is submitted, it can take between four to six months for an approval as a conservative estimate. The precise timing will be dependent on several factors.

In practice, assuming a full and complete application is submitted, it can take between nine months to a year for an approval as a conservative estimate. The precise timing will be dependent on several factors.

Yes. This is called the “managed trust company” relationship. The managing trust company will need to be a Class I trust licensee.

Yes. This can be achieved via various contractual and outsourcing arrangements.

By hand and electronically via email. The filing is made by BVI legal counsel.

On CIMA’s REEFS portal. The filing is made by Cayman Islands legal counsel.

Application fees:

• Class I, II or III – US$1,200
• Class IV – US$750
• Class V – US$500
• Restricted Class II – US$600
• Restricted Class III – US$400

Approval fees:

• Class I – US$19,200
• Class II – US$16,800
• Class III – US$14,400
• Class IV – US$7,000
• Class V – US$5,000
• Restricted Class II – US$1,200 to US$3,600
• Restricted Class III – US$600

Application fees:

• Trust licensee – CI$3,500 (US$4,268.29)
• Trust company (restricted) - CI$3,500 (US$4,268.29)
• Nominee trust - CI$3,500 (US$4,268.29)
• Trust company-controlled subsidiary - CI$3,500 (US$4,268.29)

Approval fees:

• Trust licensee – CI$90,000 (US$109,756.10)
• Trust company (restricted) - CI$8,000 (US$9,756.10)
• Nominee trust - CI$8,000 (US$9,756.10)
• Trust company-controlled subsidiary - CI$8,000 (US$9,756.10)