Financial Crime World

Fighting Financial Crime: New Legislation Passes in British Virgin Islands

Strengthening Defenses Against Money Laundering, Terrorism Financing, and Proliferation

The House of Assembly has passed three bills aimed at countering financial crimes, including money laundering, terrorism financing, and proliferation. The legislation is expected to receive the Governor’s assent soon.

Key Provisions of the New Laws

  • Criminal Justice (International Cooperation) (Amendment) Act, 2021: Gives Virgin Islands authorities more power to investigate financial crimes.
  • Counter-Terrorism Act, 2021: Focuses on detecting, preventing, prosecuting, and convicting terrorist activities within the territory. Specifies offenses and penalties associated with terrorist acts.
  • Financial Investigation Agency (Amendment) Act, 2021: Redefines the agency’s role in investigating money laundering, terrorism, and proliferation financing.

Enhancing International Cooperation

The Council of Competent Authorities, formalized by the legislation, will ensure compliance with international law on anti-money laundering and regulate the financial services sector and tax administration. Attorney General Dawn Smith emphasized that statutory recognition will enable the body to work more closely together with other authorities.

Counter-Terrorism Measures

  • Specifies offenses and penalties associated with terrorist acts, including lifelong imprisonment for involvement in detonating devices causing death or destruction.
  • Focuses on detecting, preventing, prosecuting, and convicting terrorist activities within the territory.

Financial Investigation Agency Enhancements

  • Gives the agency more authority to seek documents, examine people under oath, and take enforcement action.
  • Aims to prepare for the territory’s Caribbean Financial Action Task Force evaluation next year.

Importance of Enacting Measures

Premier Andrew Fahie highlighted the importance of enacting measures to better protect the financial sector, citing overseas territories’ significant funding cuts since the pandemic. Experts warn that attacks on the financial system are multifaceted and require a robust defense.

Call for Public Consultation

Opposition Leader Marlon Penn emphasized the need for public consultation to ensure non-profit organizations and businesses understand the impact of the new regulations.

Conclusion

The legislation marks a crucial step in preparing the territory for its upcoming evaluation, and authorities hope it will help maintain the Virgin Islands’ good standing in the financial sector.