Financial Crime World

Virgin Islands Committed to AML/CFT Compliance

The United States Virgin Islands, a major international finance center, has reaffirmed its commitment to combating money laundering (ML), terrorist financing (TF), and proliferation financing (PF) by adhering to the Financial Action Task Force’s (FATF) global standards.

A Strong AML/CFT Framework

To prevent ML, TF, and PF from having a negative impact on the territory’s financial system, economy, and citizens’ safety, the Virgin Islands operates an anti-money laundering and combating the financing of terrorism (AML/CFT) framework that meets international standards. This framework is supported by several coordinating bodies, including:

  • National AML/CFT Coordinating Council: leads policy matters related to ML/CFT
  • Council of Competent Authorities: responsible for coordinating efforts between government agencies
  • Inter-governmental Committee on AML/CFT Matters: focuses on intergovernmental cooperation and information sharing
  • Joint Anti-money Laundering and Terrorist Financing Advisory Committee: provides guidance and recommendations on AML/CFT issues
  • Committee of Law Enforcement Agencies: coordinates law enforcement efforts to combat ML, TF, and PF

Supervision and Compliance

The Financial Services Commission (FSC) is responsible for ensuring compliance with AML/CFT systems and controls. The FSC supervises regulated financial institutions to ensure they meet requirements, including:

  • Identification and verification procedures: ensure the identity of customers and beneficial owners
  • Record keeping: maintain accurate records of transactions and customer information
  • Third-party relationships: conduct due diligence on third-party service providers
  • Reporting of suspicious activities: report unusual or suspicious transactions to the authorities
  • Internal control system requirements: establish and maintain effective internal controls
  • Handling of PEPs and high-risk individuals: ensure proper due diligence and monitoring

Guidance and Outreach

The FSC provides guidance and outreach to licensees to aid them in understanding their AML/CFT obligations and ensuring the highest level of compliance. The Commission’s AML/CFT Policy and Strategy guide its supervisory, enforcement, and international cooperation efforts, aimed at preventing ML, TF, and PF in or from within the Virgin Islands.

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

The three-year strategy sets out goals across four key areas:

  • Supervision: ensure effective supervision of financial institutions
  • Enforcement: take swift and decisive action against non-compliance
  • Promotion of cooperation: foster international cooperation to combat ML, TF, and PF
  • Stakeholder awareness and outreach: educate stakeholders on AML/CFT requirements and best practices

The strategy provides a roadmap for both the Commission and financial services industry participants to uphold the Commission as an effective regulator and advance the Virgin Islands as a secure and well-regulated international financial center.