Financial Crime World

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AML Policies and Procedures in Need of Strengthening in Virgin Islands, British

A Robust System with Room for Improvement

February 27, 2024 - The financial sector in Virgin Islands, British (VI) has a robust anti-money laundering/combating the financing of terrorism (AML/CFT) system in place. However, it still requires significant strengthening to meet international standards.

Compliance with FATF Recommendations

A recent onsite visit by international experts found that VI’s AML/CFT measures are largely compliant with the Financial Action Task Force (FATF) 40 Recommendations. The island has made significant strides in implementing AML/CFT policies and procedures, including:

  • Establishing a national financial intelligence unit
  • Introducing regulations for customer due diligence and reporting suspicious transactions
  • Having regulatory bodies with a strong track record of enforcing these measures

Areas for Improvement

Despite these advancements, several challenges remain. The report highlights the need for enhanced cooperation between VI’s financial institutions and law enforcement agencies to improve information sharing and coordination in combating money laundering and terrorist financing. Additionally, there is a lack of transparency in the implementation of AML/CFT policies and procedures, making it difficult to assess their effectiveness.

Recommendations to Strengthen the System

The experts recommended several measures to strengthen VI’s AML/CFT system, including:

  • Enhancing customer due diligence requirements for financial institutions
  • Improving risk-based supervision
  • Increasing public awareness about the risks of money laundering and terrorist financing
  • More effective enforcement mechanisms to ensure compliance with AML/CFT regulations

Conclusion

While Virgin Islands, British has made significant progress in implementing AML/CFT measures, there is still much work to be done to meet international standards and protect its financial sector from illicit activities.