Risk-Based Approach Takes Center Stage

Risk-Based Approach Takes Center Stage in British Virgin Islands’ Financial Crime Management

New Report Enhances Anti-Money Laundering and Counter Terrorist Financing Framework

The British Virgin Islands Financial Services Commission (BVIFSC) has released its “Money Laundering Risk Assessment 2020” report, a comprehensive document that analyzes sectoral assessments for the period from 2015 to 2019. This significant move aims to bolster the island territory’s anti-money laundering and counter terrorist financing (AML/CFT) framework.

Background

The report serves as a follow-up to the country’s National Risk Assessment report issued in 2016, building upon subsequent recommendations outlined in the “Progress Report on the Implementation of the Recommendations from the National Risk Assessment” published by the Ministry of Finance in 2017. The BVI first conducted its national AML/CFT risk assessment in 2014.

Key Findings and Implications

Enhanced Sectoral Assessments: The report undertook a critical review of money laundering risks across various sectors under the commission’s supervision, taking into account broader threats facing the Virgin Islands.
Targeted Measures: Regulated entities can now identify specific ML risks within their respective sectors, allowing them to employ targeted measures to mitigate and manage these risks.
Refined AML/CFT Strategies: The BVIFSC and entities under its purview can leverage this detailed risk analysis to refine their AML/CFT strategies, positioning themselves more effectively against emerging threats in the financial services sector.

Conclusion

The release of the “Money Laundering Risk Assessment 2020” report marks a significant step forward in the British Virgin Islands’ efforts to enhance its anti-money laundering and counter terrorist financing framework. By adopting a risk-based approach, the BVIFSC aims to ensure that regulated entities are equipped to effectively manage and mitigate financial crime risks, ultimately strengthening the island territory’s financial stability and integrity.