New Laws Aimed at Countering Money Laundering and Terrorism Take Center Stage in British Virgin Islands

The House of Assembly in the British Virgin Islands has passed three significant bills aimed at bolstering the territory’s defenses against money laundering, terrorism financing, and proliferation. The legislation now awaits Governor John Rankin’s assent and is seen as crucial in helping the BVI maintain its good standing in the international financial sector.

Council Codified: Creation of the Council of Competent Authorities

The first bill to be debated formalized the creation of the Council of Competent Authorities, a body established by Cabinet in 2017. The council will ensure compliance with international law on anti-money laundering and help regulate the financial services sector and tax administration.

• The council will comprise of the Governor’s Office, the Financial Investigation Agency, and the International Tax Authority.
• Giving the body statutory recognition will enable its various components to work more closely together.

Counter-Terrorism: Detecting, Preventing, Prosecuting, and Convicting Terrorist Activities

The Counter-Terrorism Act, 2021 focuses on detecting, preventing, prosecuting, and convicting terrorist activities within the territory. The bill specifies offenses and penalties associated with terrorist acts, including up to lifelong imprisonment for involvement in detonating devices that cause death or extensive destruction.

• The act also criminalizes financing terrorism.
• Opposition Leader Marlon Penn emphasized the importance of public consultation to ensure non-profit organizations and businesses understand the impact of the new regulations.

FIA Enforcement: Investigating Money Laundering, Terrorism Financing, and Proliferation

The Financial Investigation Agency (Amendment) Act, 2021 redefines the FIA’s role in investigating money laundering, terrorism financing, and proliferation. The legislation gives the FIA more liberty to seek documents, examine individuals under oath, and take enforcement action.

• The act also aids with preparing for the upcoming mutual evaluation by the Caribbean Financial Action Task Force.
• Premier Andrew Fahie highlighted the significance of enacting measures to better protect the financial sector, given overseas territories have faced significant funding cuts since the pandemic began.