Financial Crime World

The British Virgin Islands (BVI) Anti-Money Laundering Regime

The BVI has implemented a comprehensive anti-money laundering (AML) framework to prevent and detect money laundering and terrorist financing activities. This framework is underpinned by robust legislation, policies, and international cooperation agreements.

Key Legislation

The following pieces of legislation form the foundation of the BVI’s AML regime:

Proceeds of Criminal Conduct Act 1997 (PCCA)

  • The Laundering and Terrorist Financing Code of Practice was promulgated by the Financial Services Commission (FSC) in 2008, pursuant to the exercise of powers granted to it under the Proceeds of Criminal Conduct Act 1997 (PCCA).
  • This code provides detailed guidance on internal systems and controls to prevent money laundering and terrorist financing.

Drug Trafficking Offences Act, 1992

  • Establishes machinery for the registration of external confiscation orders made by designated countries’ courts.
  • Facilitates international cooperation in combating drug trafficking and related offenses.

Criminal Justice (International Co-operation) Act, 1993

  • Provides provisions for facilitating cooperation with other countries in criminal proceedings and investigations.
  • Enhances the BVI’s ability to combat cross-border crime and terrorism financing.

Guiding Documents

In addition to legislation, the following guiding documents play a crucial role in shaping the BVI’s AML regime:

Laundering and Terrorist Financing Code of Practice

  • A subsidiary legislation that provides detailed guidance on internal systems and controls to prevent money laundering and terrorist financing.
  • Outlines minimal requirements for institutions to establish effective policies, procedures, and controls.
  • Agreed between the UK and the USA in 1986, facilitated by the Mutual Legal Assistance (United States of America) Act, 1990.
  • Facilitates cooperation between countries for mutual assistance in criminal matters.

Anti-Money Laundering Measures

The BVI’s AML regime incorporates several key measures to prevent money laundering and terrorist financing:

Risk-Based Approach

  • The Code allows for a risk-based approach to establishing internal policies, subject to certain minimal requirements.
  • Institutions must assess their exposure to money laundering risks and implement controls accordingly.

Administrative Offences and Penalties

  • Failure to have adequate policies, internal systems, and controls in place can result in administrative offenses with related penalties.
  • This approach provides a strong deterrent against non-compliance.

International Cooperation

  • The BVI has entered into mutual legal assistance treaties with other countries to facilitate the exchange of evidence and information in criminal matters.
  • Enhances cooperation between jurisdictions to combat cross-border crime and terrorism financing.