Financial Crime World

Virgin Islands Implements Tough Laws to Combat Financial Crime

The British Virgin Islands has taken significant steps to prevent and prosecute financial crimes, including money laundering, terrorist financing, and proliferation financing. The territory’s authorities have implemented a range of legislative measures aimed at safeguarding the integrity of its financial services industry.

Legislative Framework

The laws in question include the Anti-Money Laundering and Countering of Financing of Terrorism (AML/CFT/CPF) legislation, which criminalizes activities surrounding the proceeds of criminal conduct and regulates and supervises relevant entities for anti-money laundering and countering of terrorist financing purposes. The AML/CFT/CPF obligations of these entities are outlined in the Anti-Money Laundering and Terrorist Financing Code of Practice.

Key Legislation

  • Proceeds of Criminal Conduct Act, 1997: This act aims to prevent the use of proceeds from criminal activities for legitimate purposes.
  • Anti-Money Laundering and Terrorist Financing Code of Practice: This code outlines the obligations of financial institutions and other regulated entities to prevent money laundering and terrorist financing.

Regulatory Environment

In addition to these laws, the territory’s authorities have also implemented a range of regulations and guidelines aimed at preventing financial crime. These include:

  • Anti-Money Laundering and Terrorist Financing Code of Practice: This code outlines the obligations of financial institutions and other regulated entities to prevent money laundering and terrorist financing.
  • Guidelines for Reporting Suspicious Transactions: This guideline provides guidance on reporting suspicious transactions to the Financial Investigation Agency.

International Cooperation

The Virgin Islands’ efforts to combat financial crime are seen as a major success story in the region, with the territory’s authorities working closely with international partners to stay ahead of emerging threats. The implementation of these laws is expected to continue to play an important role in maintaining the integrity of the territory’s financial services industry and preventing the misuse of its financial system for illegal purposes.

Timeline

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  • 1997: Proceeds of Criminal Conduct Act, 1997
  • 1999: Proceeds of Criminal Conduct (Designated Countries and Territories) Order, 1999
  • 2008: Anti-Money Laundering and Terrorist Financing Code of Practice, 2008
  • 2010: Anti-Money Laundering and Terrorist Financing (Amendment) Code of Practice, 2010
  • 2010: Anti-Money Laundering and Terrorist Financing (Amendment) (No 2) Code of Practice, 2010
  • 2017: Proceeds of Criminal Conduct (Amendment) Act, 2017
  • 2021: Financial Investigation Agency (Amendment) Act, 2021
  • 2022: Proceeds of Criminal Conduct (Amendment) Act, 2022
  • 2023: Anti-Money Laundering and Terrorist Financing (Amendment) Code of Practice, 2023