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Financial Crimes on the Rise in British Virgin Islands
The British Virgin Islands (BVI) is a popular financial hub, but it’s not immune to the scourge of financial crimes. According to experts, money laundering, terrorism financing, and fraud are among the most common types of financial crimes plaguing the territory.
Definitions
- Money Laundering: Money laundering is broadly defined as any activity related to the proceeds of criminal conduct.
- Terrorism Financing: Terrorism financing is not explicitly defined in BVI law, but it’s considered to be any act that intimidates a population or compels a government or international organization to do something.
- Fraud: Fraud is defined under the Criminal Code as obtaining a pecuniary advantage by deception or dishonestly dealing with financial records.
Principal and Secondary Offences
The principal money laundering offences in BVI include:
- Assisting another to retain the benefits of criminal conduct
- Acquiring or using the proceeds of crime
- Concealing or transferring funds
- Failing to report suspicions of money laundering
- Prejudicing ongoing investigations
Relevant businesses such as credit institutions and financial firms are subject to heightened anti-money laundering obligations.
Terrorist financing offences include:
- Inviting others to provide or receive funds for terrorist purposes
- Willfully providing or making funds available for terrorism
- Failing to disclose knowledge or suspicions of terrorist financing
Fraud offences, including obtaining a pecuniary advantage by deception and dishonestly dealing with financial records, are also punishable under BVI law.
Predicate Offences
The British Virgin Islands has adopted an “all crimes” approach to predicate offences, meaning that any crime can be used as the basis for money laundering or terrorism financing charges. However, foreign crimes that are not considered criminal in the BVI are excluded from this definition.
De Minimis Rules
Unlike some other jurisdictions, there are no de minimis rules in place for money laundering, terrorism financing, and fraud offences in the British Virgin Islands. This means that even small-scale financial crimes can result in severe penalties.
The BVI government has taken steps to combat financial crimes, including strengthening anti-money laundering regulations and increasing cooperation with international law enforcement agencies. However, more needs to be done to protect the territory’s reputation as a major financial hub.