Money Laundering in Virgin Islands, British: A Growing Concern

The latest 2022 Money Laundering Risk Assessment by the BVI Financial Services Commission and the BVI Financial Investigation Agency has sounded a warning about the growing threat of money laundering (ML) in the Virgin Islands. This assessment highlights the territory’s continued commitment to identifying, assessing, and mitigating ML risk, as required by the Financial Action Task Force.

The Growing Threat of Money Laundering

The report builds on previous findings from 2020 and demonstrates the need for increased vigilance against ML schemes. The BVI authorities are urging all stakeholders to take steps to prevent their financial systems from being exploited by criminals seeking to launder ill-gotten gains.

Risks Contributing to Money Laundering

• Favorable business environment
• Financial infrastructure
• Geographic location

Areas Requiring Attention

The report identifies several areas that require attention, including:

• Improved Customer Due Diligence: The need for enhanced customer due diligence and verification procedures to prevent ML schemes.
• Enhanced Reporting Requirements: The requirement for financial institutions and businesses to report suspicious transactions and maintain accurate records.

Ongoing Threats

The Financial Investigation Agency has also issued a warning about a recent Business Email Compromise scheme targeting the real estate industry, highlighting the ongoing threat of cybercrime in the territory.

Conclusion

In light of these findings, it is clear that money laundering remains a significant concern in the Virgin Islands, British. The authorities are working to strengthen safeguards and prevent ML schemes from taking hold, but all stakeholders must remain vigilant and take proactive steps to prevent financial crimes.