Enhancing Anti-Money Laundering and Counter-Terrorism Measures in the Virgin Islands
The Government of the Virgin Islands has taken a significant step towards strengthening its anti-money laundering (AML) and counter-terrorism measures, with the House of Assembly passing three bills aimed at countering money laundering, terrorism, and proliferation financing.
Key Measures Introduced
Creation of the Council of Competent Authorities
The trio of bills introduces the creation of the Council of Competent Authorities, which will ensure the territory’s compliance with international law on AML. The council will comprise:
- Governor’s Office
- Attorney General’s Chambers
- Financial Investigation Agency (FIA)
- International Tax Authority
- Financial Services Commission
“This allows for all the territory’s competent authorities to work much more closely together,” said Attorney General Dawn Smith. “This is a significant step forward in our efforts to combat money laundering and terrorism.”
Counter-Terrorism Act 2021
The Counter-Terrorism Act 2021 focuses on the detection, prevention, prosecution, and conviction of terrorist activities within the territory. The bill specifies offences and penalties associated with terrorist acts, including up to lifelong imprisonment for involvement in detonating devices that cause death or serious bodily injury.
“This bill is an extensive one, and it marks the territory’s development as a jurisdiction called upon to conform to international standards,” said Ms Smith. “Extensive provisions address other offences, including recruitment, harbouring terrorists, and providing property to facilitate terrorist acts.”
FIA (Amendment) Act 2021
The FIA (Amendment) Act 2021 redefines the agency’s role in investigating money laundering, terrorism, and proliferation financing, giving it more liberty to seek documents and examine people under oath.
“These bills are critical steps in preparing for our Caribbean Financial Action Task Force evaluation next year,” said Minister Kye Rymer. “We need to ensure that our financial system is robust and secure.”
Government’s Commitment
The opposition leader, Marlon Penn, praised the efforts but called for public consultation on the legislation to inform non-profit organisations and businesses of their obligations.
“The attacks are coming from several angles,” he said. “We have to ensure that we are guarded, our firewall is updated, and our people are well trained to meet the needs of this industry.”
Premier Andrew Fahie highlighted the importance of protecting the financial sector in light of significant funding cuts due to the pandemic. The UK cut foreign aid by $4 billion last year.
“Even the United Nations have recognised the BVI on how we have handled Covid-19,” he said. “Enacting measures to better protect the financial sector is especially important now.”
Next Steps
The bills are a crucial step in maintaining the territory’s good standing in the financial sector, particularly amid heavy scrutiny brought on by the Commission of Inquiry.
As the House of Assembly plans its next sitting, these measures demonstrate the government’s commitment to enhancing anti-money laundering and counter-terrorism efforts in the Virgin Islands.