Financial Crime World

Here is the rewritten article in markdown format:

Compliance Procedures for Financial Institutions in the British Virgin Islands: A Key Component in the Fight Against Money Laundering and Terrorist Financing

The British Virgin Islands (BVI) remains committed to its role as an International Finance Centre, adhering to the global standards set by the Financial Action Task Force (FATF) in combating money laundering, terrorist financing, and proliferation financing. The BVI’s anti-money laundering and combatting the financing of terrorism (AML/CFT) framework is designed to prevent the misuse of its financial system and protect the integrity of its economy.

Coordinating Bodies

At the heart of the BVI’s AML/CFT efforts are several coordinating bodies, including:

  • National AML/CFT Coordinating Council: sets policy for the territory
  • Council of Competent Authorities: ensures effective coordination among authorities
  • Inter-governmental Committee on AML/CFT Matters: addresses international cooperation and information sharing
  • Joint Anti-money Laundering and Terrorist Financing Advisory Committee: provides guidance and support to financial institutions
  • Committee of Law Enforcement Agencies: enhances law enforcement cooperation

Role of the BVI Financial Services Commission (FSC)

The FSC plays a critical role in ensuring compliance with the territory’s AML/CFT systems and controls. The FSC:

  • Supervises regulated financial institutions, monitoring their adherence to strict standards
    • Identification and verification procedures
    • Record keeping
    • Third-party relationships
    • Suspicious activity reporting
    • Internal control systems
    • Handling of politically exposed persons (PEPs) and high-risk individuals

FSC’s Guidance and Outreach Support

The FSC also provides guidance and outreach support to licensees, helping them understand their obligations and ensure compliance with AML/CFT requirements. The commission’s AML/CFT Policy and Strategy provide a framework for its supervisory, enforcement, and international cooperation efforts.

Three-Year AML/CFT Strategy (2020-2022)

The FSC’s three-year strategy sets goals in four key areas:

  • Supervision: to ensure effective supervision of financial institutions
  • Enforcement: to take appropriate enforcement actions against non-compliant entities
  • Promotion of cooperation: to enhance international cooperation and information sharing
  • Stakeholder awareness and outreach: to educate stakeholders on AML/CFT requirements

By adhering to these compliance procedures, the BVI is well-positioned as a secure and well-regulated international financial centre, effectively combating money laundering and terrorist financing.