Financial Crime World

Money Laundering Concerns Lifted for Virgin Islands as EU Reverses Blacklist Decision

Major Development: US Virgin Islands Removed from EU’s High-Risk Jurisdictions List

The European Commission has removed the US Virgin Islands from its list of high-risk jurisdictions posing significant threats to the European Union’s financial system. This decision comes after Governor Albert Bryan Jr announced on Saturday that the territory is no longer considered a threat by the EU.

Background: How it All Started

In February, the EU had initially placed the US Virgin Islands on the list along with Puerto Rico, Guam, and American Samoa due to strategic deficiencies in their anti-money laundering and countering the financing of terror regimes. However, following aggressive action by the Department of Treasury at the request of the territory, the EU has reversed its decision.

Key Points

  • The EU had placed the US Virgin Islands on the list due to concerns over anti-money laundering and counter-terrorism financing measures.
  • Governor Bryan announced that the territory is no longer considered a threat by the EU.
  • The Department of Treasury worked closely with the territory’s legal team in Washington to address concerns and reverse the decision.

Consequences of Blacklisting

The blacklisting of the US Virgin Islands had significant implications for the territory, which relies heavily on foreign investment and banking services. Governor Bryan emphasized that the placement of the US Territories on the list made no sense, given that the US as a whole was not included.

Quotes from Governor Bryan

  • “We use US currency, tax systems, tax treaties, banking, corporate laws, and courts the same as all states.”
  • “We are pleased that the Department of Treasury has taken aggressive action to address these concerns.”

EU Council Meeting Outcome

During a Council Meeting in Brussels last week, 27 of the 28 EU member states objected to the list. This decision is seen as a major victory for the territory, which can now look forward to increased foreign investment and confidence in its banking system.

Conclusion

The removal of the US Virgin Islands from the EU’s high-risk jurisdictions list is a significant development for the territory. With this decision, the territory can now focus on attracting foreign investment and rebuilding its reputation as a stable and secure financial hub.