Monitoring and compliance checks on registered and approved foreign investments is an important role that is undertaken by Vanuatu Foreign Investment Promotion Agency (VFIPA).

Over the past years VFIPA did not engage effectively in its compliance program. However, VFIPA’s new Act provides more emphasis on the function of registration of foreign investments activities where an important element of this role is the monitoring and compliance of registered investments during the implementation of their approved investment activities.

VFIPA is beefing up its compliance operations to ensure that meaningful investments are established within a reasonable time frame in adherence with the laws of the country.

During the first quarter of this year VFIPA conducted a number compliance checks. Deliberately providing information that is not true or not properly informing the agency on investment information incurs high penalties under the new Act and two investments have already been penalised for these breaches. All investors are encouraged to adhere to the foreign investment laws and all necessary laws that affect their business.