Financial Crime World

Financial Crime Prosecution and Sentencing in Virgin Islands, U.S. Gets Boost with New Legislation

In a significant move aimed at countering money laundering, terrorism, and proliferation financing, the House of Assembly has passed three bills designed to strengthen financial crime prosecution and sentencing in the U.S. Virgin Islands.

Strengthening Financial Crime Prosecution and Sentencing

The bills, which now await Governor John Rankin’s assent, give authorities more power to investigate such crimes, allow for harsher prosecution, and create a new council to oversee the financial services sector. The Council of Competent Authorities will ensure compliance with international law on anti-money laundering and regulate the financial services sector and tax administration.

Key Provisions

  • The Counter-Terrorism Act, 2021 focuses on detecting, preventing, prosecuting, and convicting terrorist activities within the territory.
    • Specifies offenses and penalties for terrorist acts, including lifelong imprisonment for involvement in detonating devices that cause death, serious bodily injury, or extensive destruction.
    • Criminalizes financing terrorism.
  • The Financial Investigation Agency (Amendment) Act, 2021 redefines the agency’s role in investigating money laundering, terrorism, and proliferation financing.
    • Gives the agency more authority to seek documents, examine people under oath, and take enforcement action.

Preparing for Mutual Evaluation by Caribbean Financial Action Task Force

The legislation is expected to aid in preparing for the upcoming mutual evaluation by the Caribbean Financial Action Task Force. The bills are seen as a critical step in maintaining the territory’s good standing in the financial sector, which has come under scrutiny following the Commission of Inquiry.

Importance of Public Consultation and Communication

Opposition Leader Marlon Penn emphasized the importance of public consultation and communication with non-profit organizations and businesses to ensure compliance with new regulations. Premier Andrew Fahie noted that enacting measures to better protect the financial sector is especially important now, given overseas territories have seen significant funding cuts since the onset of the pandemic.

Conclusion

The bills are expected to contribute significantly to the territory’s efforts in combating financial crime and maintaining its international reputation as a responsible financial jurisdiction.