Sanctions Screening and Monitoring Crucial for Financial Institutions and Businesses in British Virgin Islands
Background
In a bid to maintain international peace and security, the United Nations (UN) Security Council, European Union (EU), and other countries have imposed various sanctions on individuals, entities, or regimes. These restrictive measures aim to coerce regimes into changing their behavior, constrain targets from accessing key resources, signal disapproval, and protect misappropriated assets.
Compliance Requirements in British Virgin Islands
In the British Virgin Islands (BVI), financial institutions and businesses are required to screen and monitor for sanctions to ensure compliance with international obligations. According to recent notices issued by the Office of the Governor, all relevant persons in the BVI, including individuals, entities, and professionals, must comply with financial sanctions legislation.
Who is Affected?
Sanctions apply to anyone who is a British citizen, Overseas Territories citizen, subject, national (Overseas), or protected person residing in the BVI. Additionally, any body incorporated under the laws of the Territory, as well as persons on-board ships or aircraft registered in the BVI, are also affected.
Responsibilities of Financial Institutions and Professionals
Financial institutions and professionals, including those supervised by the Financial Services Commission and the Financial Investigation Agency, must implement risk-based mechanisms to assess applicants for business, customers, and business relationships. They must determine whether these individuals or entities are subject to sanctions imposed by the UN and EU, which are extended to the Territory through Orders in Council.
Compliance Obligations
To comply with financial sanctions regime, relevant persons and non-profit organizations operating in or from within the BVI must:
- Check if they maintain accounts or hold funds for designated persons
- Freeze such accounts and assets
- Refrain from dealing with frozen assets unless licensed by the Office of the Governor
- Report findings to the Office of the Governor
- Provide additional information to facilitate compliance
Consequences of Non-Compliance
Failure to comply with financial sanctions legislation can result in criminal charges. Businesses and professionals are advised to address all inquiries, reports, and license applications to:
The Office of the Governor Waterfront Drive Road Town, Tortola VG1110 British Virgin Islands [Email: [email protected]]