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Anti-Money Laundering Measures in the British Virgin Islands

The British Virgin Islands (BVI) has established a robust anti-money laundering (AML) framework, comprising legislation such as the Proceeds of Crime Act 2007 and the Laundering and Terrorist Financing Code of Practice. This article provides an overview of the BVI’s AML measures.

Introduction

The BVI has taken significant steps to combat money laundering and terrorist financing by introducing a comprehensive AML framework. The jurisdiction’s commitment to this area is evident in its robust legislation and guidelines, which provide clarity on internal systems and controls for relevant businesses.

Laundering and Terrorist Financing Code of Practice

The Laundering and Terrorist Financing Code of Practice (the “Code”) was introduced in 2008 and revised in 2012 to reflect industry best practices. The Code is subsidiary legislation with the force of law, requiring relevant businesses to implement adequate policies, internal systems, and controls. It uses a risk-based approach, allowing for flexibility while maintaining minimal requirements.

Key Provisions of the Code

Requires relevant businesses to establish adequate policies, internal systems, and controls
Uses a risk-based approach to determine the level of compliance required
Allows for flexibility in implementing AML measures while maintaining minimal requirements

Administrative Offences and Penalties

The Code creates administrative offences related to non-compliance, with associated penalties. These are designed to encourage adherence to the Code’s requirements.

Key Provisions

Creates administrative offences for non-compliance
Imposes penalties on relevant businesses that fail to comply with the Code
Encourages adherence to the Code’s requirements through the use of penalties

Other BVI legislation addressing AML includes:

Drug Trafficking Offences Act 1992: Establishes machinery for registering external confiscation orders.
Criminal Justice (International Cooperation) Act 1993: Facilitates cooperation with other countries in criminal proceedings and investigations.
Mutual Legal Assistance (United States of America) Act 1990: Enables the exchange of evidence and information between the BVI and the USA for the investigation, prosecution, and suppression of crimes.

Conclusion

The BVI has demonstrated its commitment to combating money laundering and terrorist financing by adopting a robust AML framework. The jurisdiction is expected to continue setting a high standard in this area, following the 2008 FATF assessment team’s largely positive evaluation.

Note

This summary should not be relied upon as legal advice, but rather serves as a general overview of the topic. If you require specific guidance or have questions about AML measures in the BVI, it is best to consult with a qualified attorney or a reputable law firm.