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Regulatory Frameworks for Financial Crime Prevention in Virgin Islands, U.S.
As the global economy continues to evolve, the risk of financial crime and fraud has become a pressing concern for regulatory bodies and financial institutions alike. In the Virgin Islands, U.S., regulators are taking proactive steps to strengthen frameworks for preventing financial crimes.
Key Regulatory Challenges
1. Synthetic Identity Fraud
The use of real and fabricated information to create new identities is on the rise, making it difficult to flag suspicious activity using conventional fraud detection models.
2. Account Takeover and Social Engineering
Financial institutions must strengthen controls around evolving regulatory focal areas, including corruption, cybercrime, terrorist financing, and more.
3. Ransomware Demands via Virtual Currency
Regulators are turning attention to the use of virtual currency in ransomware demands.
4. Beneficial Ownership Information Reporting
Forthcoming regulations will require financial institutions to report beneficial ownership information.
5. Environmental Crimes
Suspicious activity reporting for environmental crimes is a growing area of regulatory focus.
Regulatory Expectations
- FinCEN’s expanded technology resources and focus on innovation, including machine learning and enhanced data analytics
- FFIEC guidance outlining effective risk management principles and practices for access and authentication
- The impending government-wide shift to “zero-trust” security
Regulatory Perimeters Continue to Expand
As regulatory expectations continue to increase, financial services companies in the Virgin Islands, U.S. should expect high levels of supervision and enforcement activity across ten key challenge areas.
Expert Insights
Amy S. Matsuo, Principal, U.S. Regulatory Insights & Compliance Transformation Lead, KPMG LLP
Edwige Sacco, Principal, KPMG US
Todd Semanco, Partner, Advisory, Financial Services Risk, Regulatory & Compliance, KPMG US
Matthew P. Miller, Principal, Advisory, Cyber Security Services, KPMG US
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