Virgin Islands Takes Bold Steps in Financial Regulation and Crime Prevention
Strengthening Financial Regulatory Framework
In a significant move, the Government of the Virgin Islands has pledged to enhance its financial regulatory framework in an effort to prevent financial crimes. This commitment was made by Honourable Lorna Smith, OBE, Deputy Premier and Minister for Financial Services, Labour and Trade, during a recent sitting of the House of Assembly.
Response to Mutual Evaluation Report
The move comes on the heels of a Mutual Evaluation Report (MER) conducted by the Caribbean Financial Action Task Force (CFATF), which assessed the Virgin Islands’ efforts against money laundering and terrorist financing. The report highlighted several areas where improvement was needed, including:
- Enhanced anti-money laundering (AML) measures
- Improved counter-financing of terrorism (CFT) measures
National Action Plan to Address Critical Issues
In response to the report’s findings, Deputy Premier Smith emphasized the Government’s commitment to adopting and implementing the recommendations outlined in the MER. She also announced the development of a National Action Plan aimed at addressing the critical issues identified in the report.
Importance of International Cooperation and Reputation
Deputy Premier Smith highlighted the importance of international cooperation and reputation, citing her participation in the CFATF Plenary in November 2023 as an example. She emphasized that the Virgin Islands is determined to attract only reputable business and is committed to mitigating risks and strengthening the prosecution of financial crimes.
Commitment to Global Financial Security Standards
This recent development not only reflects the Virgin Islands’ dedication to global financial security standards but also underscores the collaborative approach between government bodies, regulatory authorities, law enforcement, and the private sector in safeguarding the integrity of its financial system.
Progress Towards Enhanced Regulatory and Enforcement Mechanisms
As the Virgin Islands embarks on this crucial journey towards enhanced regulatory and enforcement mechanisms, Deputy Premier Smith’s statement reassures both local and international communities of the territory’s resolve to lead by example in financial services regulation and crime prevention. The progress of these initiatives is awaited with keen interest by stakeholders worldwide, as the Virgin Islands continues to uphold its reputation as a secure and reputable global financial centre.
Background
Since the introduction of the Anti-Money Laundering Code of Practice in 1999, the Virgin Islands has progressively strengthened its legislative and regulatory provisions. However, the latest CFATF evaluation indicates that more needs to be done to combat illicit financial flows and ensure that the territory remains an uninviting terrain for financial criminals.
The Virgin Islands is recognized as a major financial hub globally, with a significant portion of its government revenues and economic sustainability coming from the financial services sector. In order to maintain a clean, transparent, and highly regulated financial environment, the Government has pledged an unwavering commitment to bolstering its AML and CFT framework.