Financial Crime World

British Virgin Islands Stays Ahead of the Game in Combating International Financial Crime

The British Virgin Islands (BVI) continues to demonstrate its commitment to combating international financial crime, including money laundering, terrorist financing, and proliferation financing. The territory has implemented a robust Anti-Money Laundering and Combatting Financing of Terrorism (AML/CFT) framework that meets the international standards set by the Financial Action Task Force (FATF).

AML/CFT Framework

The BVI’s AML/CFT framework is designed to prevent financial crimes from infiltrating its financial system, economy, and society. It involves a coordinated effort among various government agencies, regulatory bodies, and financial institutions.

Key Bodies Involved

At the heart of this framework are several key bodies that work together to combat money laundering, terrorist financing, and proliferation financing:

  • National AML/CFT Coordinating Council (NAMLCC): Leads policy efforts
  • Other committees focus on specific areas such as:
    • Law enforcement
    • Financial regulation
    • International cooperation

Supervision and Regulation

The BVI Financial Services Commission (FSC) plays a crucial role in ensuring compliance with the territory’s AML/CFT systems and controls. The FSC:

  • Supervises regulated financial institutions to ensure they adhere to strict guidelines, including requirements for:
    • Customer due diligence
    • Record keeping
    • Reporting of suspicious transactions
  • Provides guidance and outreach to licensees to help them understand their obligations and maintain high levels of compliance with AML/CFT requirements

Three-Year Strategy

The three-year strategy aims to mitigate risks and comply with international standards by implementing effective measures across four key areas:

  • Supervision: Ensuring the effectiveness of supervision and enforcement
  • Enforcement: Taking swift and decisive action against non-compliance
  • Promotion of Cooperation: Strengthening cooperation among government agencies, regulatory bodies, and financial institutions
  • Stakeholder Awareness and Outreach: Educating stakeholders on AML/CFT requirements and best practices

Conclusion

By staying ahead of the curve in combating international financial crime, the BVI is protecting its reputation as a trusted jurisdiction and promoting economic stability and security for its citizens and businesses.