Financial Crime World

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

Enforcement Authorities

In the British Virgin Islands (BVI), several government authorities are responsible for enforcing AML/CTF laws, including:

  • Financial Investigation Agency: Conducts investigations into suspicious transactions and financial crimes.
  • Financial Services Commission: Regulates and supervises financial institutions to ensure compliance with AML/CTF regulations.
  • Attorney General: Oversees the prosecution of money laundering, terrorist financing, and fraud offenses in court.
  • BVI Courts: Handles court-based prosecutions related to AML/CTF offenses.

Statute of Limitations

There is no limitation period for court-based prosecutions related to:

  • Money laundering
  • Terrorist financing
  • Fraud offenses

Penalties

Offenders may face imprisonment, fines, or both. The penalties range from up to two years’ imprisonment and a fine of up to $250,000 on summary conviction to up to 14 years’ imprisonment and a fine of up to $500,000 on indictment.

Plea Agreements

The director of public prosecution has discretion in accepting or rejecting plea agreements in exchange for reduced offenses.

Defenses

Parties may have defenses if they:

  • Disclose acts concerned to the Financial Investigation Agency (FIA) before performing them
  • Perform acts with the FIA’s consent
  • Acquire, transfer, use, or possess property for adequate consideration

Record-Keeping and Disclosure Requirements

Relevant persons must establish and maintain records indicating the nature of evidence obtained, comprising a copy of the evidence, or containing information enabling a copy to be obtained.

Compliance

Companies are advised to:

  • Establish internal systems and controls
  • Effect customer due diligence measures
  • Practice good record keeping
  • Provide employee training

Private Actions

Private actions can be brought for damages arising from money laundering, terrorist financing, or fraud offenses.

The BVI’s AML/CTF regulations aim to prevent the misuse of financial systems for illicit activities and ensure a safe environment for businesses and individuals. By understanding these regulations, companies and individuals in the BVI can ensure compliance and mitigate risks associated with AML/CTF offenses.