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Virgin Islands Moves to Prevent Financial Crime with Trio of Bills
The Virgin Islands House of Assembly has passed a trio of bills aimed at countering money laundering, terrorism, and proliferation financing. These measures will give local authorities more power to investigate such crimes, allow for harsher prosecution, and create a new council to oversee the financial services sector.
Council of Competent Authorities Formalized
The first bill formalizes the creation of the Council of Competent Authorities. This body will ensure compliance with international law on anti-money laundering and help regulate the financial services sector and tax administration.
- Key Features:
- Ensures all competent authorities work closely together
- Creates a statutory recognition for the council to carry out its mandates effectively
- Has been in the works since 2017, when Cabinet initially approved its establishment
Attorney General Dawn Smith brought the bill for final readings and stated, “This allows for all the territory’s competent authorities to work much more closely together.”
Counter-Terrorism Act Focuses on Detection and Prevention
The Counter-Terrorism Act focuses on detecting, preventing, and prosecuting 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 destruction.
- Key Features:
- Specifies offences and penalties associated with terrorist acts
- Includes provisions addressing recruitment, harbouring terrorists, and providing property to facilitate terrorist acts
- Criminalizes financing terrorism
Attorney General Smith stated, “This bill is indeed an extensive one, and it marks the territory’s development as a jurisdiction called upon to conform to international standards.”
Financial Investigation Agency Given More Power
The Financial Investigation Agency (Amendment) Act gives the FIA more liberty to seek documents, examine people under oath, and take enforcement action. The legislation will aid with preparing for the upcoming mutual evaluation.
- Key Features:
- Gives the FIA more power to seek documents
- Allows the FIA to examine people under oath
- Enables the FIA to take enforcement action
Minister Kye Rymer stated, “Defining ‘designated non-financial businesses and professions’ will provide greater clarity for prosecuting financial offences across the board.”
Opposition Leader Emphasizes Importance of Public Consultation
Opposition Leader Marlon Penn emphasized the importance of public consultation to ensure that persons understand what impact the legislation may have on them. He noted that non-profit organizations and businesses in the territory need to be communicated with so they can comply with the new regulations.
- Key Quote:
- “The attacks are coming from several angles… 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 Emphasizes Importance of Protecting Financial Sector
Premier Andrew Fahie emphasized the importance of enacting measures to better protect the financial sector, especially now considering overseas territories have seen significant funding cuts since the onset of the pandemic. He noted that the United Nations has recognized the BVI on how it has handled Covid-19.
- Key Quote:
- “The bills await Governor John Rankin’s assent and are expected to be implemented soon.”