Solomon Islands Compliance Report

Generated 2026-09-22

Comprehensive Framework

Regulatory Overview

Regulatory Status: Dedicated crypto/VA legislation, licensing regime, active enforcement
Key Regulator(s): Central Bank of Solomon Islands Act, Ministry of Finance and Treasury
Primary Legislation: Companies Act 2009: For breaches related to illegal offerings of unregistered se, Anti-Money Laundering and Counter-Terrorist Financing (AML/CTF) Act 2002: The Fi, s powers and responsibilities, which include regulating the financial system and ensuring monetary stability. This Act forms the basis for the CBSI, There is no dedicated cryptocurrency or digital asset law in Solomon Islands; vi, The Legislation Act 2023 was preceded by the Legislation Bill 2023, which was ta, Virtual Asset Act,, The existing Immigration Act 2011, while not a financial law, indicates the type, The Legislation Act 2023 modernizes the parliamentary legislative process but do, The Legislation Act 2023, which came into effect to streamline how statutory ins, Parliament has not debated or passed any bill that would establish a VASP licens, No public ruling confirms whether the Solomon Islands Income Tax Act applies to, While the Constitution provides for the rule of law and Parliament's ability to, The Legislation Act 2023 demonstrates that Parliament is modernizing its legisla, Legislation Act 2023 - National Parliament of Solomon Islands
Travel Rule: Not adopted
Tax Reporting: Solomon Islands does NOT have a general Capital Gains Tax.. Therefore, any profits from the sale or disposal of cryptocurrency for individuals or businesses, if solely considered a capital gain, would likely not be subject to CGT as such a tax does not exist in the Solomon Islands.. However, this does not mean profits are entirely tax-free. If the activities involving cryptocurrency are deemed to constitute a "business" or if the profits are considered "income" under the Income Tax Act, they could be taxable under income tax provisions (see below).. Trading as a Business: If an individual is regularly buying and selling cryptocurrency with the intention of making a profit, and the scale and frequency of these activities resemble a business, the profits could potentially be classified as business income.. Employment Income: If an individual receives cryptocurrency as payment for services rendered or as part of their employment, the value of the cryptocurrency at the time of receipt would likely be treated as taxable income (similar to a benefit in kind).

Key Facts

aml Solomon Islands Financial Intelligence Unit (SIFIU) Role: SIFIU is responsible for receiving, analysing, and disseminating financial intelligence related to suspected money laundering and terrorist financing. It also provides guidance to reporting entities and monitors their compliance with AML/CFT obligations. Financial Intelligence Unit Act 2021: This Act establishes the SIFIU and defines its powers and functions. Anti-Money Laundering and Counter-Terrorist Financing Act 2021 (the AML/CFT Act): This comprehensive legislation aligns the Solomon Islands with international FATF standards, covering customer due diligence, reporting obligations, and broader AML/CFT requirements for financial institutions, which increasingly include VASPs. Financial Transactions Reporting Act 2010: This Act also contributes to the framework, particularly regarding the reporting of certain transactions. Natural Persons: Obtain full name, date of birth, residential address, nationality, and unique identification number (e.g., passport, national ID). Verify this information using reliable, independent source documents, data, or information. Legal Persons/Entities (e.g., Companies): Obtain name, legal form, proof of existence, powers that regulate and bind the legal person, and the names of relevant persons holding senior management positions. Beneficial Ownership: Identify and verify the identity of the natural person(s) who ultimately own or control the customer (typically 25% or more ownership/control threshold for legal entities).
custody No specific crypto custody license: There is no dedicated license for virtual asset custodians. Potential application of existing licenses: If an entity's activities involving digital assets were deemed to fall under the definition of banking business, financial institution services, or securities trading, it would likely require a license under the Financial Institutions Act 1998 or other relevant financial legislation administered by the CBSI. However, this would depend on how digital assets are legally characterized, which is currently ambiguous for custody. Anti-Money Laundering (AML) / Counter-Terrorist Financing (CFT): The Anti-Money Laundering and Counter-Terrorist Financing Act 2002 (as amended) is the primary legislation for AML/CFT. The Solomon Islands is a member of the Asia/Pacific Group on Money Laundering (APG), which aligns with FATF standards. While the Act broadly covers "financial institutions," it is not explicitly clear if "virtual asset service providers" (VASPs), including custodians, are explicitly defined and captured under its scope for registration or licensing beyond general reporting obligations. Many jurisdictions initially apply AML/CFT to VASPs before developing specific operational rules. Segregation of Client Assets Rules: No specific crypto rules: There are no explicit rules mandating the segregation of client digital assets from the custodian's proprietary assets. General fiduciary principles: For traditional financial institutions, general principles of fiduciary duty and client asset protection would typically apply, implying segregation. However, without specific legislation for digital assets, the enforceability and interpretation for crypto assets would be unclear. No specific crypto requirements: There are no specific insurance or bonding requirements for digital asset custodians. General capital adequacy: Licensed financial institutions might be subject to capital adequacy requirements as part of their licensing conditions, but this typically does not extend to specific insurance for digital asset theft or loss.
licensing Debentures (including debenture stock, bonds, notes, and other similar instruments) Interests in a managed investment scheme Units in an unlisted trust Other instruments commonly understood as securities. Investment of Money (or assets): Has an investor committed assets (fiat, other crypto) into the token issuance? In a Common Enterprise: Is there a pooling of investor funds, or a shared interest in the success or failure of the project? With an Expectation of Profit: Did the issuer promote the token as an investment, promising future returns, appreciation, or other financial benefits? Deriving Solely from the Efforts of Others: Do the profits or returns primarily depend on the managerial or entrepreneurial efforts of the token issuer or a third party, rather than the efforts of the individual token holder?
securities Solomon Islands Stock Exchange (SISE): Established in 1996, it operates under the supervision of SIFSA. Website: https://generisonline.com/understanding-securities-law-and-stock-exchange-regulations-in-the-solomon-islands/ Securities Act of 2010: Governs the issuance and trading of securities, including potential digital assets. No specific section references cryptocurrencies, indicating a need for interpretation or amendment. SIFSA reference International Standing: The Solomon Islands is a member of the Financial Action Task Force (FATF), adhering to global AML/CFT standards. FATF membership Issuance of digital asset securities. Trading of digital assets on a regulated exchange. Provision of advisory services related to digital assets. EDD (Enhanced Due Diligence): Not explicitly defined for digital assets. STR (Suspicious Transaction Reporting): Obligatory for any suspicious activity related to digital asset transactions.
stablecoin No specific classification. There is currently no specific legislation in the Solomon Islands that explicitly classifies stablecoins as e-money, payment tokens, or securities. In the absence of specific crypto-asset regulation, their classification would likely depend on their specific characteristics and how they are offered and used: If a stablecoin functions primarily as a medium of exchange and is widely accepted, it could potentially be viewed as an unregulated form of e-money or a payment token, subject to the Central Bank of Solomon Islands' (CBSI) general oversight of payment systems, though specific rules would be absent. If a stablecoin is offered to investors with an expectation of profit from the efforts of others, it could theoretically be considered a security under a broad interpretation of existing securities laws, though this is highly speculative without explicit guidance. Not specified. Given the absence of specific stablecoin regulation, there are no stipulated reserve requirements for stablecoin issuers in the Solomon Islands. If a stablecoin were to be deemed a form of e-money or deposit-taking activity, it might eventually fall under the prudential requirements enforced by the CBSI for licensed financial institutions, but this would require a specific determination and potentially new regulations. No specific licensing regime. There is no dedicated licensing regime for stablecoin issuers in the Solomon Islands. Entities wishing to operate payment systems or conduct financial services that could involve stablecoins would need to ascertain if their activities fall under the purview of the Central Bank of Solomon Islands (CBSI) under the Central Bank of Solomon Islands Act 1976 (as amended) or the Financial Institutions Act 1998. However, neither of these acts explicitly mentions or provides a framework for virtual asset issuers.
status There is no dedicated cryptocurrency or digital asset law in Solomon Islands; virtual assets are not explicitly legalized, prohibited, or regulated under any specific statute Parliament No named regulator has been designated with specific authority over virtual assets, digital currencies, or blockchain-based financial services as of 2025–2026 National Parliament of Solomon Islands No licensing or registration regime exists for cryptocurrency exchanges, wallet providers, or digital asset service providers—no entity can apply for a crypto-specific license SI Constitution The practical reality is that cryptocurrency activity operates in a legal vacuum; while no law explicitly bans it, no legal framework authorizes, supervises, or protects virtual asset businesses, and the Central Bank has not issued any public framework for digital assets Legislation Act 2023 - National Parliament of Solomon Islands No specific government body in Solomon Islands has been formally assigned statutory responsibility for cryptocurrency or digital asset regulation National Parliament of Solomon Islands The Central Bank of Solomon Islands (CBSI) serves as the nation's central financial authority under the existing constitutional and statutory framework, but no gazetted notice or legislation has been identified that confers specific virtual asset oversight powers to CBSI SI Gazette - 2011 Gazette Notices Gazette Edn. No. GN No. Publication date The Ministry of Finance and Treasury has general responsibility for financial sector policy, but no public document indicates it has issued any cryptocurrency-specific directives Parliament The Office of the Registrar of Companies, operating under the Ministry of Commerce, handles general business registration but has no published mandate for digital asset service providers Acts Of Parliament 1982 | National Parliament of Solomon Islands
tax Therefore, any profits from the sale or disposal of cryptocurrency for individuals or businesses, if solely considered a capital gain, would likely not be subject to CGT as such a tax does not exist in the Solomon Islands. However, this does not mean profits are entirely tax-free. If the activities involving cryptocurrency are deemed to constitute a "business" or if the profits are considered "income" under the Income Tax Act, they could be taxable under income tax provisions (see below). Trading as a Business: If an individual is regularly buying and selling cryptocurrency with the intention of making a profit, and the scale and frequency of these activities resemble a business, the profits could potentially be classified as business income. Employment Income: If an individual receives cryptocurrency as payment for services rendered or as part of their employment, the value of the cryptocurrency at the time of receipt would likely be treated as taxable income (similar to a benefit in kind). Mining/Staking: If an individual engages in crypto mining or staking activities at a scale that resembles a business, the rewards received could be considered business income. Profits from Trading: If a company trades cryptocurrency, any profits generated would generally be considered part of the company's ordinary business income and taxed at the corporate income tax rate. Receipts in Crypto: If a business receives cryptocurrency as payment for goods or services, the value of that cryptocurrency would form part of its assessable income. Mining/Staking: For businesses engaging in mining or staking, the rewards would be part of their taxable income.
travel rule Not Adopted: The Solomon Islands does not have a specific regulatory framework for Virtual Assets (VAs) or Virtual Asset Service Providers (VASPs). Consequently, the FATF Travel Rule (Recommendation 16, as applied to VASPs under Recommendation 15) has not been adopted or made effective. The Asia/Pacific Group on Money Laundering (APG) Mutual Evaluation Report for the Solomon Islands, published in August 2019, clearly states that the Solomon Islands "has not yet assessed the ML/TF risks associated with virtual assets (VAs) and virtual asset service providers (VASPs) within the jurisdiction" and that there is "no specific legislation or regulation relating to VASPs." Recommendation 15 (New Technologies) was rated as "Non-Compliant" (NC). Further reinforcing this, the Central Bank of Solomon Islands (CBSI) issued a Public Notice on 26th July 2021 warning the public about the risks associated with cryptocurrencies. The notice stated that cryptocurrencies are "not legal tender in Solomon Islands," "unregulated," and "not recognized by CBSI as a regulated financial product or service." Since there is no regulatory framework for VASPs or the Travel Rule, there are no established threshold amounts for information exchange in the Solomon Islands. As there is no specific legislation or regulation covering VASPs, no VASPs are formally covered under a VASP-specific AML/CFT regime, nor are they subject to the Travel Rule. Given the absence of a regulatory framework for VASPs and the Travel Rule, there are no specified technical implementation requirements for VASPs in the Solomon Islands. Because the Travel Rule has not been adopted into law, there are no specific penalties for non-compliance with the Travel Rule in the Solomon Islands. However, operating any unregulated financial service carries inherent risks, and any entity found to be facilitating money laundering or terrorist financing through virtual assets, if such activities were ever investigated and proven, would likely fall under the general provisions of the Solomon Islands Anti-Money Laundering and Counter-Terrorist Financing Act 2002 (as amended). But this would be for the underlying crime, not for VASP-specific regulatory non-compliance.

Sources

This report is AI-generated from publicly available regulatory sources. Last updated: 2026-09-09. View full profile