Financial Crime World

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Virgin Islands Stays Committed to Fighting Money Laundering and Terrorist Financing

The Virgin Islands has reaffirmed its commitment to combating money laundering (ML), terrorist financing (TF) and proliferation financing (PF) by maintaining compliance with the Financial Action Task Force’s (FATF) international standards on combating ML, TF and PF.

The Importance of Combating Money Laundering and Terrorist Financing

The fight against these illegal activities requires a coordinated global effort, as they have far-reaching consequences that can impact national borders. The Virgin Islands recognizes the importance of an effective anti-money laundering and combatting the financing of terrorism (AML/CFT) framework to ensure:

  • The integrity of its financial system
  • Economic stability
  • Public safety

The AML/CFT Framework in the Virgin Islands

The Virgin Islands operates an AML/CFT framework that adheres to international standards, with a legislative regime comprising various laws and regulations. The framework includes several coordinating bodies, including:

  • National AML/CFT Coordinating Council (NAMLCC): leads on policy matters related to AML/CFT
  • BVI Financial Services Commission: responsible for ensuring compliance with the Territory’s AML/CFT systems and controls through supervision of regulated financial institutions

Responsibilities of the BVI Financial Services Commission

The Commission is responsible for:

  • Monitoring licensees for compliance with identification and verification procedures, record keeping requirements, reporting of suspicious activities, internal control system requirements, and handling of politically exposed persons (PEPs) and other high-risk individuals
  • Providing guidance and performing outreach to its licensees to aid them in understanding their obligations and ensuring the highest level of compliance with AML/CFT requirements

The Commission’s Strategy for AML/CFT

The Commission’s three-year strategy (2020-2022) sets out goals across four key areas:

Supervision

  • Ensure effective supervision of financial institutions to prevent money laundering and other criminal activities

Enforcement

  • Take enforcement actions against licensees that fail to comply with AML/CFT requirements

Promotion of Cooperation

  • Foster cooperation with international partners to combat ML, TF, and PF

Stakeholder Awareness and Outreach

  • Raise awareness among stakeholders about the importance of AML/CFT compliance and provide guidance on their obligations

The strategy provides a guide for both the Commission and financial services industry participants on actions required to uphold the Commission as an effective regulator and advance the Virgin Islands as a secure and well-regulated international financial centre.