Financial Crime World

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Anti-Money Laundering Measures in the British Virgin Islands (BVI)

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Overview of Anti-Money Laundering Regulation

The BVI Financial Services Commission (FSC) has established a robust anti-money laundering (AML) framework to prevent and detect money laundering and terrorist financing activities. This framework is designed to ensure that relevant businesses operating in the BVI comply with international AML standards.

The Laundering and Terrorist Financing Code of Practice

Introduction

In 2008, the FSC promulgated the Laundering and Terrorist Financing Code of Practice (the “Code”), which sets out guidelines for relevant businesses to follow under the Proceeds of Criminal Conduct Act (PCCA). The Code has the force of law and requires relevant businesses to establish internal policies and controls to prevent money laundering and terrorist financing.

Administrative Offences and Penalties

The Code creates administrative offences related to inadequate policies, internal systems, and controls. These offences are tailored for different types of businesses, including:

  • Banking institutions
  • Trust companies
  • Insurance companies
  • Securities dealers
  • Money services providers

Relevant businesses must ensure that they comply with the Code’s requirements to avoid administrative penalties.

Several laws in the BVI address money laundering and terrorist financing, including:

1. Drug Trafficking Offences Act 1992

Establishes machinery for registering external confiscation orders made by designated countries.

2. Criminal Justice (International Cooperation) Act 1993

Facilitates cooperation with other countries in criminal proceedings and investigations.

Implements the Mutual Legal Assistance Treaty concerning the Cayman Islands between the UK and USA, facilitating exchange of evidence and information in criminal matters.

Conclusions

The BVI has taken a proactive approach to combat money laundering and terrorist financing, with effective anti-money laundering regulation reflecting international standards. The jurisdiction is expected to continue as a model for other countries to follow in AML efforts.