Here is the rewritten article in markdown format:

BVI Financial Regulator Cracks Down on Anti-Money Laundering Compliance

The British Virgin Islands (BVI) Financial Services Commission (FSC) has announced plans to increase scrutiny of financial service providers in response to a European Union blacklist and a visit by the Caribbean Financial Action Task Force. As a result, professional services firms are under pressure to demonstrate robust anti-money laundering (AML) and countering the financing of terrorism (CTF) controls.

More Onsite Inspections and Regulatory Scrutiny Expected

The BVI FSC will focus on ensuring that licensed entities have adequate internal controls in place to prevent financial crimes. This includes reviewing client acceptance procedures, ongoing due diligence processes, record-keeping practices, and the effectiveness of internal audit functions.

Key Areas of Focus for Compliance

Client and Mandate Acceptance Procedures: Ensuring that clients are properly vetted and onboarded
Ongoing Client Due Diligence Processes: Regularly reviewing client information to ensure continued compliance
Maintenance of Client Books and Records: Keeping accurate and up-to-date records of client transactions
Evidence of Robust Internal Audit or Compliance Function: Demonstrating a sound internal audit process
Consideration of Tax Risk/Transparency Requirements: Ensuring tax compliance and transparency
Sanction Checking: Verifying that clients are not subject to any sanctions

Consequences of Non-Compliance

The increased regulatory scrutiny will lead to more instances of enforcement actions, fines, and penalties for non-compliance. Companies that fail to remediate deficiencies in their AML/CTF frameworks may face significant consequences.

KPMG BVI Offers Assistance with Compliance

KPMG’s experienced team in the British Virgin Islands can provide guidance on meeting AML/CTF requirements, including independent audits, industry best practices, and remediation of deficiencies. Our structured approach has been developed based on working with leading financial institutions and service providers in the region.

Why Choose KPMG BVI?

Deep Understanding of Local Regulatory Requirements: We have extensive knowledge of BVI regulations
Global and Local Footprint for National, Regional, and International AML Risk Management: Our global network provides comprehensive AML risk management solutions
Passionate About Clients, People, and Communities: We are dedicated to delivering exceptional service to our clients