British Virgin Islands Introduces Comprehensive Sanctions Screening and Monitoring Measures

The British Virgin Islands Financial Services Commission (BVI FSC) has announced the implementation of a robust sanctions screening and monitoring regime, aimed at preventing the misuse of its financial system by entities and individuals targeted by UK sanctions.

Strengthening Commitment to Combating Financial Crime

The new regime is designed to detect and prevent transactions with designated persons, including those subject to asset freezes and travel bans. The BVI FSC has extended several UK sanctions regimes to the VI through Orders in Council, covering various thematic and geographic areas.

Overview of the UK Sanctions Regime

The UK Sanctions Regime includes designated persons and specified or designated ships, which is now in force in the British Virgin Islands. Financial institutions and financial services practitioners are required to screen transactions and monitor accounts for any links to these targeted individuals and entities.

Sanctions Regimes Currently in Effect

• The Sanctions and Anti-Money Laundering Act 2018
• Other UK legislation

Compliance Requirements

Industry stakeholders are advised to familiarize themselves with the new regime and ensure compliance with its requirements. Failure to comply may result in severe consequences, including:

• Fines
• Reputational damage

Marking a Significant Step Forward for the British Virgin Islands

The implementation of this sanctions screening and monitoring regime marks a significant step forward in the British Virgin Islands’ efforts to maintain its reputation as a well-regulated financial center. The initiative demonstrates the territory’s commitment to protecting its financial system from abuse and ensuring the integrity of international transactions.

By implementing this robust regime, the BVI FSC is strengthening its defenses against financial crime and enhancing its position as a reliable and secure jurisdiction for international business.