Financial Crime World

Virgin Islands Steals the Show with Robust Financial Institution Security Measures

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The Virgin Islands has demonstrated its commitment to combating money laundering, terrorist financing, and proliferation financing by implementing a comprehensive framework that adheres to international standards set by the Financial Action Task Force (FATF). This robust system ensures the integrity of its financial sector, economic stability, and citizen safety.

AML/CFT Framework

The Virgin Islands has established an Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) framework that includes a suite of laws and regulations, as well as several coordinating bodies. These bodies play crucial roles in the fight against money laundering, terrorist financing, and proliferation financing.

  • National AML/CFT Coordinating Council (NAMLCC): leads policy matters
  • Council of Competent Authorities: plays a key role in coordinating efforts
  • Inter-governmental Committee on AML/CFT Matters: works to strengthen international cooperation
  • Joint Anti-money Laundering and Terrorist Financing Advisory Committee: provides guidance and support
  • Committee of Law Enforcement Agencies: ensures effective enforcement

Financial Services Commission Takes the Lead

The British Virgin Islands Financial Services Commission (FSC) is responsible for ensuring compliance with AML/CFT systems and controls through supervision of regulated financial institutions. The FSC’s key responsibilities include:

  • Monitoring licensees for compliance with identification and verification procedures
  • Ensuring record keeping requirements are met
  • Supervising third-party relationships
  • Reporting suspicious activities
  • Implementing internal control system requirements
  • Handling Politically Exposed Persons (PEPs)

AML/CFT Policy and Strategy

The FSC provides guidance and 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 AML/CFT Policy and Strategy guide its supervisory, enforcement, and domestic and international cooperation regimes, strengthening its ability to prevent money laundering and other criminal activities.

Three-Year AML/CFT Strategy (2020-2022)

The FSC’s three-year AML/CFT strategy aims to mitigate risks and comply with international standards by implementing effective measures across the financial services sector. The strategy focuses on four key areas:

  • Supervision: ensuring compliance through regular monitoring
  • Enforcement: taking swift action against non-compliant institutions
  • Promotion of Cooperation: strengthening relationships with international partners
  • Stakeholder Awareness and Outreach: educating licensees and the public about AML/CFT requirements

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