Financial Crime World

EU Imposes Sanctions on Chemical Weapons Proliferators

The European Union has taken a significant step to curb the proliferation and use of chemical weapons by imposing sanctions on individuals and entities responsible for such activities. According to Council Regulation (EU) 2018/1542, those designated by the EU will face asset freezes and other restrictive measures.

Sanctions Regime

The regulation outlines exemptions and derogations that can be licensed by the Governor in certain circumstances. This allows for specific activities to continue while still complying with the sanctions regime.

Coordinating Bodies Play Key Role

In addition to the sanctions, several coordinating bodies play a crucial role in the Virgin Islands’ anti-money laundering (AML) and combating the financing of terrorism (CFT) framework. These bodies include:

  • NAMLCC: The national coordinating body on AML/CFT issues, responsible for developing and coordinating strategies to combat money laundering and terrorist financing.
  • CCA: Facilitates coordination between the Territory’s chartered accountants relative to the execution of domestic and international cooperation matters and other relevant AML/CFT issues.
  • CLEA: Established to ensure greater coordination and collaboration in the fight against money laundering, terrorist financing, and organized crime through intelligence sharing and joint law enforcement efforts.
  • JALTFAC: Advises the Commission on initiatives for the prevention and detection of money laundering and terrorist financing, promotes dialogue with the private sector, and encourages information exchange on AML/CFT matters.
  • IGC: Serves as a mechanism for creating public awareness of issues relating to money laundering and terrorist financing, fostering cooperation between key public bodies involved in the fight against ML/TF activities.

Commission’s Role

The Commission is responsible for ensuring compliance with the Territory’s 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, and reporting of suspicious activities.

The Commission also provides guidance and outreach to its licensees to aid them in complying with AML/CFT regulations. By working together with these coordinating bodies, the Commission aims to create a robust framework that prevents the misuse of financial systems for illicit activities.