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Anti-Money Laundering Measures in the British Virgin Islands

The British Virgin Islands (BVI) has implemented anti-money laundering (AML) regulations to prevent money laundering and terrorist financing. Here are the main points:

Background

  • The BVI has put in place AML regulations to combat financial crimes.
  • The Anti-Money Laundering and Terrorist Financing Code of Practice (the “Code”) was promulgated by the Financial Services Commission (FSC) in 2008.

Relevant Businesses

The following businesses are considered “relevant” for AML purposes:

  • Banking or trust business
  • Insurance business
  • Company management business
  • Anti-money laundering measures
  • Investment business or mutual fund
  • Trust or company service providers
  • Remittance service providers
  • Financing or money services business
  • Advising on capital structure, mergers and acquisitions
  • Providing legal, notarial, or accounting services relating to real estate transactions

AML Requirements

Relevant businesses must:

  • Maintain client identification procedures
  • Keep “know your client” and suspicious transaction records
  • Establish internal reporting procedures for suspicious transactions
  • Have in place internal controls and communication procedures
  • Appoint a money laundering reporting officer
  • Provide adequate training for staff on AML obligations

Code of Practice

The Code provides detailed guidance on AML requirements, including:

  • Internal systems and controls
  • Risk-based approach to establishing policies
  • Administrative offences and related penalties for non-compliance
  • The Drug Trafficking Offences Act, 1992, and the Drug Trafficking Offences (Enforcement of Overseas Confiscation Orders) Order, 2017 establish machinery for registering external confiscation orders.
  • The Criminal Justice (International Co-operation) Act, 1993 provides for facilitating cooperation with other countries in criminal proceedings and investigations.

Mutual legal assistance treaties allow for the exchange of evidence and information in criminal and ancillary matters. The Mutual Legal Assistance (United States of America) Act, 1990 gives effect to the Mutual Legal Assistance Treaty between the USA and the BVI.