Financial Crime World

Risk-Based Approach to Financial Crime Risk Management Essential for British Virgin Islands

The British Virgin Islands is taking a proactive approach to financial crime risk management by updating its money laundering and terrorist financing risk assessments. This update is crucial in ensuring that the Territory remains vigilant against emerging risks and threats.

National Anti-Money Laundering Coordinating Council’s Task

  • The National Anti-money Laundering Coordinating Council has tasked the Financial Services Commission (FSC) and the Financial Investigation Agency (FIA) with conducting individual risk assessments for:
    • All financial services licensees
    • Non-profit organizations
    • Qualifying designated non-financial businesses and professionals

Importance of Risk-Based Approach

The Virgin Islands’ National AML/CFT Strategy and Policy require a continuous understanding of money laundering and terrorist financing risks to effectively mitigate such threats. By taking proactive steps to identify and mitigate emerging risks, the Territory can:

  • Identify changes to ML and TF risks affecting the Territory
  • Put measures in place to mitigate such risks
  • Ensure an ongoing understanding of its money laundering (ML) and terrorist financing (TF) risks

Call to Action for Financial Services Licensees

Financial services licensees, including banks, investment business licensees, trust and corporate service providers, and insolvency practitioners, are being asked to complete an online survey by December 30, 2022. The information gathered will enable the FSC and the FIA to identify relevant money laundering and terrorist financing risks that currently impact the Territory.

The Risk-Based Approach to Financial Crime Risk Management

The risk-based approach to financial crime risk management is essential in maintaining a safe and secure financial environment for the Virgin Islands, British. By taking proactive steps to identify and mitigate emerging risks, the Territory can continue to maintain its reputation as a trusted and reliable jurisdiction for international business and finance.

Conclusion

Updating these assessments will allow the Virgin Islands to identify changes to ML and TF risks affecting the Territory, put measures in place to mitigate such risks, and ensure an ongoing understanding of its money laundering (ML) and terrorist financing (TF) risks. The FSC and the FIA thank all participants for their cooperation and look forward to receiving their submissions.