Financial Crime World

VIRGIN ISLANDS TIGHTENS THE SCREWS ON AML/KYC COMPLIANCE

In its ongoing efforts to combat money laundering, terrorist financing, and proliferation financing, the Virgin Islands has strengthened its Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) framework.

The Territory’s Commitment to Global Standards

The Virgin Islands’ commitment to global standards is evident in its adherence to the Financial Action Task Force’s (FATF) International Standards on Combatting Money Laundering and the Financing of Terrorism and Proliferation. This framework requires a coordinated effort from national borders, as money laundering, terrorist financing, and proliferation financing have far-reaching consequences that can compromise the integrity of the financial system, economic stability, and public safety.

AML/CFT Framework in Place

The Virgin Islands operates a comprehensive AML/CFT framework that includes an extensive suite of laws and regulations. The legislative regime is supported by several coordinating bodies, which play crucial roles in the Territory’s AML/CFT architecture.

Coordinating Bodies

  • National AML/CFT Coordinating Council (NAMLCC): Leads on all AML/CFT-related policy matters, including representatives from various committees.
  • Financial Services Commission: Responsible for ensuring compliance with the Territory’s AML/CFT systems and controls through supervision of regulated financial institutions.

Key Responsibilities of the Financial Services Commission

The Commission is responsible for:

Monitoring Compliance

  1. Identifying and verifying procedures for new and continuing business relationships
  2. Record-keeping requirements
  3. Third-party relationships
  4. Reporting of suspicious activities
  5. Internal control system requirements
  6. Handling of Politically Exposed Persons (PEPs) and other high-risk individuals

Providing Guidance and Outreach

  • Providing guidance to aid licensees in understanding their obligations
  • Ensuring the highest level of compliance with AML/CFT requirements

AML/CFT Policy and Strategy

The Commission’s AML/CFT policy strengthens its supervisory, enforcement, and domestic and international cooperation regimes. The strategy is a three-year roadmap (2020-2022) to implement effective measures against money laundering, terrorist financing, and proliferation financing risks inherent in the financial services sector.

Key Areas of Focus

  1. Supervision: To ensure that licensees comply with AML/CFT requirements.
  2. Enforcement: To take action against non-compliant licensees.
  3. Promotion of Cooperation: To enhance collaboration between relevant authorities and stakeholders.
  4. Stakeholder Awareness and Outreach: To educate the public and industry participants about AML/CFT risks and best practices.

The Strategy’s Goals

  • Uphold the Commission as an effective regulator
  • Advance the Virgin Islands as a secure and well-regulated international financial centre
  • Mitigate against ML, TF, and PF risks