AML/KYC Compliance Checklists in British Virgin Islands Get a Digital Boost

New Amendments to Anti-Money Laundering and Terrorist Financing Code of Practice 2008

The British Virgin Islands (BVI) Financial Services Commission (FSC) has introduced amendments to the Anti-Money Laundering and Terrorist Financing Code of Practice 2008, paving the way for financial institutions in the jurisdiction to leverage electronic innovations for customer verification. The changes came into effect on August 1, 2018.

Key Changes

• Electronic Verification: BVI institutions can now conduct electronic and digital verification processes using proprietary software or programmes. This includes verification by digital, electrical, magnetic, optical, electromagnetic, biometric, and photonic forms.
• Cyclical Monitoring: Institutions must engage in a cyclical monitoring process every three years to track changes in conditions and ensure compliance with stipulated requirements.
• Independent Third-Party Platforms: The revised rules emphasize the importance of relying on independent third-party platforms for verification. These organizations must use accurate and reliable sources of data to link customers to current and historical information.

Key Takeaways

• Non-Face-to-Face Meetings: BVI institutions do not automatically treat applicants for business or customers as high risk in non-face-to-face transactions, unless they are satisfied that the individual presents a high risk or is engaged in money laundering or terrorist financing.
• Certified Documents: Certified documents such as passports and utility bills can be relied upon by BVI institutions without needing to be physically certified by designated professionals.

Conclusion

The amendments reflect the shift towards fintech innovation in financial services, allowing the BVI to stay ahead of developments in this space while maintaining its integrity as a world-class jurisdiction.