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Anti-Money Laundering (AML) and Terrorist Financing Measures in the British Virgin Islands

The British Virgin Islands (BVI) has established a robust framework to combat money laundering and terrorist financing, ensuring a safe and secure financial environment for its residents and international businesses.

The Laundering and Terrorist Financing Code of Practice

In 2008, the Financial Services Commission (FSC) promulgated the Laundering and Terrorist Financing Code of Practice, which was revised in 2012 to align with industry best practices. This code has the force of law and is enforceable against relevant businesses.

Key Requirements for Compliance

To prevent money laundering and terrorist financing, relevant businesses must have internal policies and systems in place, as outlined in the Code. These include:

  • Mandatory compliance: Relevant businesses must adhere to the Code’s requirements.
  • Risk-based approach: The Code favors a risk-based approach to establishing internal policies, subject to certain minimal requirements.
  • Administrative offences: Failure to comply with the Code can result in administrative offences and related penalties.

Other relevant laws and regulations include:

  • Drug Trafficking Offences Act, 1992
  • Drug Trafficking Offences (Enforcement of Overseas Confiscation Orders) Order, 2017
  • Criminal Justice (International Co-operation) Act, 1993
  • Mutual Legal Assistance (United States of America) Act, 1990

International Cooperation

The BVI has mutual legal assistance treaties with other countries, including the USA, to facilitate cooperation in criminal proceedings and investigations.

FATF Assessment

The BVI received a largely positive assessment from the FATF assessment team in 2008, indicating that it is considered a model for other jurisdictions to follow in terms of AML and terrorist financing efforts.

Overall, the British Virgin Islands’ commitment to combating money laundering and terrorist financing demonstrates its dedication to creating a secure financial environment for all stakeholders.