US Virgin Islands Division of Banking, Insurance, and Financial Regulation

Overview

The Division of Banking, Insurance, and Financial Regulation (DBIFR) is the primary financial regulatory agency of the US Virgin Islands government, operating under the Office of the Lieutenant Governor. The Division serves as a major revenue generator and regulatory authority for the USVI, overseeing money transmission licensing, banking activities, securities, insurance, international financial services entities, and emerging fintech services including cryptocurrency and digital assets.

The Division has achieved full national accreditation and regulates a comprehensive range of financial services entities to ensure consumer protection and system integrity across the territory.

Regulator Name: US Virgin Islands Division of Banking, Insurance, and Financial Regulation

Regulator Acronym: DBIFR (or "Division of Banking")

Territory: US Virgin Islands (USVI)

Control Authority: Office of the Lieutenant Governor

Primary Regulator Contact: Requires verification from official sources Director, Division of Banking, Insurance, and Financial Regulation

Basic Identity

Classification

Inclusion Justification

What This Entity Oversees

Regulatory Oversight

The Division conducts regular examinations and ongoing supervision of licensed money transmitters to ensure:

• Compliance with applicable law and regulatory requirements

• Adequate capital and financial condition

• Consumer protection and anti-fraud safeguards

• Accurate record-keeping and reporting

• Compliance with anti-money laundering and sanctions screening requirements

Reporting Requirements

Requires verification from official sources Money transmitters are required to submit periodic financial reports and operational disclosures to the Division, including information regarding transaction volumes, authorized delegates, and significant changes to the business.

Examination Authority

The Director has statutory authority to conduct examinations, request information, and access records of money transmitters and their agents as necessary to ensure compliance and protect consumers.

Consumer Safeguards

The Division establishes and enforces consumer protection requirements for money transmitters, including:

• Disclosure of fees, exchange rates, and service terms

• Proper handling and security of customer funds

• Record-keeping to track customer transactions

• Dispute resolution procedures

• Notification and reporting of data breaches or security incidents

Anti-Fraud Provisions

Money transmitters must implement fraud prevention controls and report suspicious activity in compliance with anti-money laundering requirements.

Requires verification from official sources Consumer Complaint Process

Consumers may file complaints with the Division regarding money transmitter services. The Division investigates complaints and takes corrective action as warranted.

Regulatory Powers

The Division of Banking, Insurance, and Financial Regulation has broad enforcement authority to:

• Deny, refuse to renew, or revoke licenses for violations or failure to meet regulatory standards

• Issue cease and desist orders against unlicensed money transmission activity

• Assess civil penalties and fines for regulatory violations

• Suspend or revoke licenses for serious breaches of law or unsafe practices

• Pursue criminal referrals to law enforcement for criminal violations such as fraud or unauthorized money transmission

• Conduct investigations into consumer complaints and suspected violations

• Impose conditions or restrictions on license renewals

• Require corrective action plans to remedy deficiencies identified during examination

Unlicensed Money Transmission

Operating as a money transmitter without a license is prohibited under USVI law. The Division enforces this prohibition through cease and desist orders, civil penalties, and criminal referrals.

Regulatory Role and Function

Legal Foundation

Establishing Statute

The Division of Banking, Insurance, and Financial Regulation is established under US Virgin Islands Code Title 3, § 35 (2019).

The Division derives its regulatory authority from multiple statutory sources across the Virgin Islands Code:

• Title 3, § 35 — Establishment of the Division of Banking, Insurance and Financial Regulation

• Title 9 — Banking and money services regulation

• Title 12A — Requires verification from official sources Finance and credit regulation

• Title 20 — Requires verification from official sources Insurance regulation

• Title 22 — Requires verification from official sources Securities regulation

• Title 28 — Requires verification from official sources Additional financial services oversight

Key Regulatory Framework

Uniform Money Services Act (Title 9, Chapter 22): The Division regulates money transmission under the Uniform Money Services Act, which establishes licensing requirements, operational standards, and consumer protections for money transmitters, check cashers, and currency exchange servicers operating in or from the USVI.

Cryptocurrency Services: The Division issued Bulletin 2022-01: Licensure and Regulation of Cryptocurrency Services in the United States Virgin Islands (April 2022), establishing the regulatory framework for digital asset and cryptocurrency service providers.

Statutory Jurisdiction

The Division's jurisdiction extends to all financial services entities operating in or from the US Virgin Islands, including:

• Money transmitters and payment processors

• Banks and credit unions

• Mortgage lenders and brokers

• Securities brokers and dealers

• Insurance companies and producers

• International Financial Services Entities (IFSEs)

• Cryptocurrency and digital asset service providers

• Captive insurance companies

• Debt management providers

• Non-bank ATM operators

Licensing and Authorization Relevance

Licensing Requirement

Under USVI Code Title 9, Chapter 22, Subchapter II, money transmission activity is not permitted without an active license from the Division of Banking, Insurance, and Financial Regulation. Any person or entity engaged in selling, issuing, or transmitting payment instruments, stored value, or monetary value must be licensed.

Definition of Money Transmitter: Per Title 9, Chapter 22, a money transmitter is any person involved in:

• Selling or issuing payment instruments

• Issuing or selling stored value

• Receiving money or monetary value for transmission to another location

License Application Process

Application Requirements:

Applicants must submit a complete application in the form and medium prescribed by the Director, including:

• List of other jurisdictions where the applicant is licensed to engage in money transmission

• Disclosure of any license revocations, suspensions, or disciplinary actions in any jurisdiction

• Information regarding bankruptcy or receivership proceedings

• Details on authorized delegates and payment instruments offered

• Name and address of depository banks through which payment instruments will be paid

• Description of source of money and credit to be used in the business

• Such other information as the Director may reasonably require

Processing Timeline: Upon receipt of a complete application, the Director shall approve or deny the request within 120 days of determining the application is complete.

License Renewal: Money transmission licenses require periodic renewal in accordance with regulations prescribed by the Division.

License Suspension and Revocation

The Director may suspend or revoke a license for violations of applicable law, failure to maintain capital requirements, failure to maintain accurate records, unsafe or unsound business practices, or other regulatory violations.

Minimum Net Worth

Money transmitter applicants and licensees must maintain a minimum net worth of $25,000 (USD) in accordance with USVI Code Title 9, § 516.

Ongoing Compliance: Licensees must continuously maintain the minimum net worth requirement throughout the term of the license.

Surety Bond Requirements

Bond Amount: The Division requires surety bonds as a condition of money transmission licensing. The Director has authority to establish the required bond amount, which may range from Requires verification from official sources baseline amount up to $1,000,000, depending on:

• The applicant's or licensee's financial condition

• The nature and scope of money transmission activities

• Risk assessment and consumer protection considerations

• Transaction volume and customer funds held

Bond Issuance: All surety bonds must be issued by a surety authorized to conduct business in the US Virgin Islands.

Requires verification from official sources Baseline Bond Amount: Specific baseline surety bond amounts are not confirmed in publicly available sources; contact the Division directly for current requirements.

Cryptocurrency and Digital Assets

The Division regulates cryptocurrency and digital asset service providers under Bulletin 2022-01: Licensure and Regulation of Cryptocurrency Services in the United States Virgin Islands (issued April 2022 by the Office of the Lieutenant Governor).

Framework: The bulletin establishes that persons engaged in providing cryptocurrency and digital asset services—including custody, trading, exchange, and transmission of virtual assets—must comply with applicable money transmission and financial services licensing requirements.

Regulatory Treatment: Digital assets and virtual currency services are treated as money transmission activities for licensing purposes under Title 9, Chapter 22, subject to the same licensing requirements, net worth, and surety bond provisions as traditional money transmitters.

Key Regulatory Principles:

• Cryptocurrency and digital asset service providers must obtain appropriate licenses

• Services involving custody or control of customer virtual assets are subject to capital and insurance requirements

• Anti-money laundering and sanctions screening requirements apply

• Customer due diligence and beneficial ownership disclosure are required

Emerging Fintech Services

The Division maintains authority to regulate emerging financial technologies and services as they develop, with particular focus on:

• Non-custodial payment services and protocols

• Stablecoins and tokenized money

• Digital wallet providers

• Decentralized finance (DeFi) services offered by USVI-based entities

• Blockchain-based payment and settlement systems

Requires verification from official sources Fintech Guidance: The Division may issue additional bulletins or guidance as regulatory frameworks evolve for fintech services.

Payments and Money Movement Relevance

The US Virgin Islands Division of Banking, Insurance, and Financial Regulation has the following relevance to payments and money movement in United States:

Payment Systems Governed or Overseen

The US Virgin Islands Division of Banking, Insurance, and Financial Regulation does not directly operate payment systems. Its payment-related role includes:

Money transmitters, payment processors, and fintech companies operating in this jurisdiction require licensing or registration with this entity.

Relationship to Other Regulators

Multi-Jurisdictional Licensing

The Division recognizes that money transmitters often operate in multiple states and territories. Applicants must disclose all other jurisdictions where they hold or have held money transmission licenses.

Information Sharing

Requires verification from official sources The Division participates in information sharing with other state financial regulators and federal agencies (FinCEN, Federal Reserve, OCC) to coordinate examination activities and enforcement.

Money Transmitter Reciprocity

Licensed in Another Jurisdiction: Entities licensed in other jurisdictions may apply for approval to operate in the USVI under USVI Code Title 9, § 517 (Approval to engage in money transmission when licensed elsewhere). Such entities must still meet USVI requirements or qualify for reciprocal recognition.

NMLS and Regulatory Databases

Requires verification from official sources The Division may utilize the National Multistate Licensing System (NMLS) or other regulatory databases for licensing coordination and consumer protection.

Geography and Jurisdiction Notes

Important Departments and Divisions

Key Public Resources

Primary Office Locations

St. Thomas Office (Main):

• Address: 5049 Kongens Gade, Charlotte Amalie, St. Thomas, US Virgin Islands 00802

• Phone: (340) 774-7166

• Fax: (340) 774-9458

• Email: Requires verification from official sources licensing inquiries

St. Croix Office:

• Address: 1131 King St., Suite 101, Christiansted, St. Croix, US Virgin Islands 00802

• Phone: (340) 773-6459

• Fax: (340) 719-3801

Division Leadership

Chief of Licensing: Requires verification from official sources Gail Danet-Joseph (contact information: [email protected])

Director: Requires verification from official sources The Division is headed by a Director whose duties are prescribed by the Lieutenant Governor. The Lieutenant Governor serves as ex officio Commissioner of Banking and Insurance.

Official Website

Departmental Website: https://ltg.gov.vi/departments/banking-insurance-and-financial-regulation/

Parent Agency: Office of the Lieutenant Governor, US Virgin Islands Government

• Website: https://ltg.gov.vi/

Regulatory Documents and Bulletins

• USVI Code Title 9, Chapter 22 (Uniform Money Services Act): https://law.justia.com/codes/virgin-islands/2019/title-9/chapter-22/

• Bulletin 2022-01 (Cryptocurrency Services): https://ltg.gov.vi/wp-content/uploads/2022/04/Bulletin-2022-01-Licensure-and-Regulation-of-Cryptocurrency-Services-in-the-United-States-Virgin-Islands.pdf

• Establishment Statute (Title 3, § 35): https://law.justia.com/codes/virgin-islands/2019/title-3/chapter-3/35/

Application and Licensing

License Applications: Applicants must submit applications to the Division at the St. Thomas office or by mail. Contact the Division for current application forms and procedures.

License Fees: Requires verification from official sources License application fees and renewal fees are established by regulation and are available from the Division upon request.

Notes on Naming and Language