Financial Crime World

British Virgin Islands Toughens Anti-Terrorism Financing Regulations

The British Virgin Islands (BVI) has strengthened its anti-money laundering and combating the financing of terrorism (AML/CFT) framework to combat money laundering, terrorist financing, and proliferation financing. This commitment is essential for maintaining the integrity of its financial system, economic stability, and public safety.

AML/CFT Framework

The BVI operates an AML/CFT framework that incorporates a range of laws and regulations aimed at preventing money laundering, terrorist financing, and proliferation financing. This framework includes several coordinating bodies, such as:

  • National AML/CFT Coordinating Council (NAMLCC): Oversees all AML/CFT-related policy matters.
  • British Virgin Islands Financial Services Commission (FSC): Ensures compliance with AML/CFT systems and controls through supervision of regulated financial institutions.

Supervision and Enforcement

The FSC plays a crucial role in ensuring compliance with AML/CFT systems and controls by:

  • Supervising licensed financial institutions for compliance with various requirements, including:
    • Identification and verification procedures
    • Record-keeping
    • Reporting of suspicious activities
    • Internal control systems
    • Handling of politically exposed persons and high-risk individuals
  • Providing guidance and performing outreach efforts to aid licensees in understanding their obligations

AML/CFT Policy

The FSC’s AML/CFT Policy serves as a framework for its strategy, which aims to:

  • Prevent money laundering and terrorist financing
  • Mitigate risks inherent in the financial services sector

Three-Year Strategy (2020-2022)

The BVI’s three-year strategy focuses on four key areas:

  • Supervision: Enhance supervision of licensed financial institutions to ensure compliance with AML/CFT requirements.
  • Enforcement: Implement effective enforcement measures for non-compliance with AML/CFT regulations.
  • Promotion of Cooperation: Foster cooperation between the FSC, industry participants, and other regulatory bodies to share information and best practices.
  • Stakeholder Awareness and Outreach: Raise awareness among stakeholders about the importance of AML/CFT compliance and provide guidance on their obligations.

This comprehensive approach provides a roadmap for both the FSC and industry participants to uphold regulatory standards and advance the BVI as a secure and well-regulated international financial centre.