Financial Crime World

Sanctions Screening and Monitoring in British Virgin Islands

The British Virgin Islands (BVI) has implemented a robust sanctions regime to curb global financial malpractices and achieve specific foreign policy or national security objectives.

Overview of the Sanctions Regime

The BVI’s sanctions regime is designed to prohibit transactions with individuals, entities, and regimes deemed harmful to international peace and security. The prohibitions are formulated as sanctions legislation and can be imposed by various bodies such as:

  • United Nations Security Council
  • European Union Council
  • Her Majesty’s Treasury in the United Kingdom
  • Office of Foreign Assets Control in the United States

Types of Sanctions

The regime includes:

  • Financial sanctions: used to coerce entities or individuals into changing their behavior
  • Trade sanctions: used to constrain access to key resources needed for illegal activities
  • Immigration sanctions: used to signal disapproval through stigmatization and potential isolation
  • Protection of assets misappropriated from a country

Compliance Requirements

In the BVI, financial sanctions apply to any person, body corporate, or entity registered in the territory. Compliance with these regulations rests with:

  • Financial institutions
  • Designated non-financial businesses supervised by:
    • BVI Financial Services Commission
    • BVI Financial Investigation Agency

To ensure compliance, subjects of the sanctions regime are advised to implement:

  • Risk-based mechanisms
  • Policies and procedures
  • Assess customers and business relationships for potential sanctions violations

Consequences of Non-Compliance

Failing to comply with these regulations constitutes a criminal offense, while circumventing the regime carries severe consequences.

Monitoring Compliance

The BVI Financial Services Commission and other regulatory bodies are responsible for:

  • Monitoring compliance
  • Enforcing sanctions violations

Staying Informed

Individuals and entities operating in the BVI must stay abreast of:

  • Financial sanctions notices
  • Targeted financial sanctions consolidated lists
  • Guidance from the UK

For more information on sanctions screening and monitoring in the British Virgin Islands, please visit harneys.com.