Financial Sanctions and Embargoes in the British Virgin Islands: A Comprehensive Guide
The British Virgin Islands (BVI), a self-governing overseas territory of the United Kingdom, has implemented financial sanctions and embargoes to achieve specific foreign policy or national security objectives. These measures are designed to maintain international peace and security.
What Are Financial Sanctions?
Financial sanctions are restrictive measures put in place by the United Nations (UN) Security Council or the UK government. They may include:
- Designations for asset freezes
- Trade restrictions
- Arms embargoes
- Travel bans
Sanctions can limit financial services provision, restrict access to markets, funds, and economic resources.
Why Are Financial Sanctions Used?
Financial sanctions are generally imposed on individuals, entities, or regimes to:
- Coerce a regime into changing its behavior by increasing costs
- Constrain targets by denying them key resources needed for offending behavior
- Signal disapproval and potentially isolate a regime or individual
- Protect the value of assets misappropriated from a country
Who Is Subject To Financial Sanctions?
Financial sanctions apply to:
- Any person in the BVI
- British citizens, Overseas Territories citizens, or British subjects ordinarily resident in the BVI
- Bodies incorporated or constituted under BVI laws
- Persons on-board ships or aircraft registered in the BVI
Compliance With Financial Sanctions
The requirement of ensuring compliance with obligations rests with relevant entities and professionals. These include:
- Financial institutions registered, incorporated, or constituted under BVI laws and supervised by the Financial Services Commission
- Designated Non-Financial Businesses and Professions (DNFBPs) and Non-Profit Organisations (NPOs) registered, incorporated, or constituted under BVI laws and supervised by the Financial Investigation Agency
- Persons on-board ships or aircraft registered in the BVI
All relevant persons are required to fully comply with obligations set out in legislation and ensure appropriate risk-based mechanisms, policies, and procedures to assess applicants for business, customers, and business relationships to determine whether they are under any sanctions imposed by the UN and EU extended to the Territory as Sanctions Orders by the UK through Orders in Council.
Key Takeaways
- Financial sanctions are restrictive measures used to achieve specific foreign policy or national security objectives.
- These sanctions can limit financial services provision, restrict access to markets, funds, and economic resources.
- Compliance with financial sanctions is a shared responsibility among relevant entities and professionals.