Financial Crime World

Anti-Money Laundering and Counter-Terrorist Financing Framework for the British Virgin Islands

Introduction

The British Virgin Islands (BVI) has established a comprehensive Anti-Money Laundering (AML) and Counter-Terrorist Financing (CFT) framework to prevent, detect, and report suspicious activities. This document outlines the key legislation, regulations, and coordinating bodies that are part of the BVI’s AML/CFT architecture.

Key Legislation

The following pieces of legislation form the foundation of the BVI’s AML/CFT framework:

  • Anti-Money Laundering Regulations 2008: These regulations provide a comprehensive framework for the prevention of money laundering.
  • Anti-Money Laundering and Terrorist Financing Code of Practice 2008: This code sets out the minimum standards for businesses to follow in order to comply with AML/CFT regulations.
  • Proliferation Financing (Prohibition) Act 2009: This act prohibits the financing of proliferation activities, including nuclear, chemical, and biological weapons development.
  • Chemical Weapons (Overseas Territories) Order 2005: This order implements the Chemical Weapons Convention in the BVI, prohibiting the development, production, acquisition, stockpiling, and use of chemical weapons.
  • Chemical Weapons (Sanctions) (Overseas Territories) Order 2018: This order imposes sanctions on individuals and entities involved in the proliferation of chemical weapons.

Coordinating Bodies

The following coordinating bodies play a crucial role in ensuring compliance with AML/CFT regulations:

  • National Anti-Money Laundering and Counter-Terrorist Financing Coordinating Council (NAMLCC): This council oversees the development and implementation of AML/CFT policies and procedures.
  • Committee of Competent Authorities (CCA): This committee coordinates the efforts of competent authorities, including law enforcement agencies and regulatory bodies.
  • Committee for Law Enforcement Authorities (CLEA): This committee provides a forum for law enforcement agencies to discuss AML/CFT issues and share best practices.
  • Joint Anti-Laundering Task Force Advisory Committee (JALTFAC): This committee advises on the development of policies and procedures related to anti-money laundering and counter-terrorist financing.

Role of the Commission

The Commission plays a critical role in ensuring compliance with AML/CFT systems and controls through supervision and inspection of regulated financial institutions. This includes:

  • Monitoring licensees for compliance with identification and verification procedures, record keeping requirements, third-party relationships, reporting of suspicious activities, internal control system requirements, identification and handling of Politically Exposed Persons (PEPs), and other high-risk individuals.
  • Providing guidance and performing outreach to its licensees to aid them in complying with AML/CFT regulations.