Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF) Legislation in the British Virgin Islands

The British Virgin Islands (BVI) has implemented comprehensive anti-money laundering (AML) and counter-terrorism financing (CTF) legislation to prevent, detect, and mitigate the risks associated with financial crimes. The following article outlines key aspects of these regulations.

Definitions and Offences

• Money Laundering: Refers to activities related to the proceeds of criminal conduct.
• Terrorism Financing: Involves providing financial support to terrorist groups or individuals, although not explicitly defined in BVI legislation.
• Offences: Individuals convicted of AML/CTF-related offences under the Proceeds of Criminal Conduct Act 1997 or Drug Trafficking Offence Act 1992 may face up to 14 years’ imprisonment, a fine of up to $500,000, or both on conviction on indictment.

Defences and Compliance Measures

• Defences: A party may have a defence if it disclosed the act concerned to the Financial Investigation Agency (FIA) before performing it and performed the act with the FIA’s consent and in aid of a law enforcement function.
• Compliance Measures: Companies are advised to establish internal systems and controls, effect customer due diligence measures, practice good record keeping, and provide employee training.

Record-Keeping and Disclosure Requirements

• Relevant persons must maintain records indicating the nature of evidence obtained during customer due diligence, as well as all transactions carried out by or on behalf of a person.
• These records should be kept for at least five years from the end of the transaction.

Private Actions for Damages

• Any private person with standing can file an action based on a cause of action for damages in the BVI courts.

These regulations aim to prevent financial crimes, protect national security, and maintain the integrity of the financial system.