Financial Sanctions and Embargoes in the Virgin Islands: What You Need to Know
The British Virgin Islands has been subject to financial sanctions and embargoes imposed by the United Nations Security Council, European Union, and the United Kingdom. These measures aim to achieve specific foreign policy or national security objectives, maintain international peace and security, and prevent the misuse of assets.
What are Financial Sanctions?
Financial sanctions can take many forms, including:
- Asset freezes: preventing individuals or entities from accessing their financial resources
- Trade restrictions: restricting trade with targeted countries or individuals
- Travel bans: prohibiting travel to or from targeted countries
These measures are designed to coerce regimes or individuals into changing their behavior by increasing the cost on them, constrain targets by denying access to key resources, signal disapproval, stigmatize, and isolate regimes or individuals, and protect the value of misappropriated assets.
Who is Affected?
Financial sanctions apply to:
- Any person resident in the territory
- British citizens, overseas territories citizens, subjects, nationals, and protected persons who are ordinarily resident
- Bodies incorporated under local laws
- Ships registered in the territory
- Aircraft registered in the territory
Compliance Requirements
Financial institutions and professionals regulated by the Financial Services Commission and the Financial Investigation Agency must ensure compliance with financial sanctions obligations. This includes:
- Having risk-based mechanisms, policies, and procedures to assess applicants for business, customers, and business relationships to determine whether they are subject to UN or EU-imposed sanctions extended to the territory through Orders in Council
- Conducting regular checks on accounts and funds held by designated individuals
Reporting Requirements
Relevant persons and non-profit organizations operating in or from within the Virgin Islands must:
- Check if they hold accounts or funds for designated individuals
- Freeze such accounts and funds
- Refrain from dealing with them unless licensed by the Office of the Governor
- Report findings to the Office of the Governor
- Provide additional information as required
Consequences of Non-Compliance
Failure to comply with financial sanctions obligations is a criminal offense.
Contact Information
All enquiries, reports, and license applications should be addressed to:
Office of the Governor Waterfront Drive, Road Town, Tortola VG1110 Email: [email protected]