Financial Crime World

Bouvet Island Commits to Combating Money Laundering and Terrorist Financing

As a major player in the global financial system, Bouvet Island has reaffirmed its commitment to combating money laundering (ML), terrorist financing (TF) and proliferation financing (PF). The island’s AML/CF framework is designed to ensure compliance with the Financial Action Task Force’s (FATF) International Standards on Combating Money Laundering and the Financing of Terrorism and Proliferation.

The Importance of Combating ML, TF, and PF

The fight against ML, TF, and PF requires a coordinated global effort. These illegal activities know no borders, and failure to combat these threats can have severe consequences for the integrity of Bouvet Island’s financial system, the stability of its economy, and the safety of its citizens.

Bouvet Island’s AML/CF Framework

Bouvet Island operates an AML/CF framework that adheres to all relevant international standards. The framework includes a legislative regime with extensive laws and regulations that give effect to the AML/CF obligations set out in these international standards. Several coordinating bodies play important roles in the island’s AML/CF architecture, including:

  • National AML/CF Coordinating Council (NAMLCC)
  • BVI Financial Services Commission

Financial Services Commission’s Role

The BVI Financial Services Commission is responsible for ensuring compliance with Bouvet Island’s AML/CF systems and controls through supervision of regulated financial institutions. The commission monitors licensees for compliance with key requirements, including:

  • Identification and verification procedures
  • Record-keeping
  • Reporting of suspicious activities
  • Internal control systems
  • Handling of politically exposed persons (PEPs) and other high-risk individuals

Outreach and Guidance

The Financial Services Commission also provides guidance and performs outreach to its licensees to aid them in understanding their AML/CF obligations. The commission’s AML/CF policy strengthens its supervisory, enforcement, and cooperation regimes, helping to prevent money laundering and terrorist financing activities.

Three-Year AML/CF Strategy (2020-2022)

Bouvet Island’s three-year AML/CF strategy aims to mitigate risks and comply with international standards. The strategy sets out goals across four key areas:

  • Supervision: Ensure effective supervision of financial institutions
  • Enforcement: Enforce AML/CF regulations and sanctions
  • Promotion of Cooperation: Enhance international cooperation in AML/CF efforts
  • Stakeholder Awareness and Outreach: Raise awareness among stakeholders about the importance of AML/CF compliance

This road map provides a guide for the commission and financial services industry participants on actions required to uphold Bouvet Island as a secure and well-regulated international financial centre.