Financial Crime World

The British Virgin Islands’ Robust AML/CFT Framework: A Key Player in the Global Fight Against Money Laundering

In its continued commitment to combatting money laundering (ML), terrorist financing (TF) and proliferation financing (PF), the British Virgin Islands (BVI) remains at the forefront of international efforts to uphold financial integrity. As a major International Finance Centre, the BVI has implemented a comprehensive Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) framework that adheres to all relevant global standards.

A Comprehensive Framework for AML/CFT

The BVI’s AML/CFT framework is built upon a robust legislative regime, comprising an extensive suite of laws and regulations designed to give effect to international obligations. This framework is supported by several coordinating bodies, each playing a critical role in ensuring the Territory’s compliance with AML/CFT requirements.

Key Coordinating Bodies

At the heart of the BVI’s AML/CFT architecture lies the National AML/CFT Coordinating Council (NAMLCC), which spearheads policy matters related to AML/CFT. The NAMLCC comprises representatives from various committees, including:

  • The Council of Competent Authorities
  • The Inter-governmental Committee on AML/CFT Matters
  • The Joint Anti-money Laundering and Terrorist Financing Advisory Committee
  • The Committee of Law Enforcement Agencies

Ensuring Compliance: The Role of the Financial Services Commission

The BVI Financial Services Commission (FSC) is responsible for ensuring that regulated financial institutions adhere to the Territory’s AML/CFT systems and controls. This includes monitoring licensees for compliance with key requirements, such as:

  • Identification and verification procedures
  • Record keeping
  • Third-party relationships
  • Reporting of suspicious activities
  • Internal control system requirements
  • Handling of Politically Exposed Persons (PEPs) and other high-risk individuals

The FSC’s AML/CFT Policy and Strategy

Guided by its AML/CFT Policy, the FSC aims to strengthen its supervisory, enforcement, and domestic and international cooperation regimes. The policy provides a framework for the FSC’s three-year AML/CFT strategy (2020-2022), which focuses on four key areas:

  • Supervision
  • Enforcement
  • Promotion of cooperation
  • Stakeholder awareness and outreach

The strategy serves as a roadmap for effective measures to combat ML, TF, and PF risks inherent in the financial services sector, ensuring that the BVI remains a secure and well-regulated international financial centre.