Financial Crime World

Financial Crime Investigation and Analysis in US Virgin Islands Gets Boost with New Laws

The United States Virgin Islands has taken a significant step towards strengthening its financial crime investigation and analysis capabilities by passing three bills aimed at countering money laundering, terrorism, and proliferation financing.

Key Highlights of the Bills

  • The House of Assembly passed the Criminal Justice (International Cooperation) (Amendment) Act, 2021, which allows for harsher prosecution and gives authorities more power to investigate financial crimes.
  • The Counter-Terrorism Act, 2021 focuses on detecting, preventing, prosecuting, and convicting terrorist activities within the territory, specifying offenses and penalties for involvement in detonating devices that cause death or destruction.
  • The Financial Investigation Agency (Amendment) Act, 2021 redefines the FIA’s role in investigating money laundering, terrorism, and proliferation financing, giving it more authority to seek documents and take enforcement action.

Strengthening International Cooperation

The bills give statutory recognition to the Council of Competent Authorities, established in 2017. This council will ensure the territory’s compliance with international anti-money laundering laws and regulate the financial services sector and tax administration.

  • Attorney General Dawn Smith emphasized that giving the body statutory recognition will enable its members to work more closely together.
  • The council will also aid in preparing for the upcoming mutual evaluation by the Caribbean Financial Action Task Force.

Protecting the Financial Sector

Premier Andrew Fahie highlighted the need to protect the financial sector, particularly considering overseas territories have faced significant funding cuts since the onset of the pandemic.

  • The bills passed without amendments and are expected to enhance the territory’s ability to combat financial crime and maintain its good standing in the international financial community.
  • Opposition Leader Marlon Penn emphasized the importance of public consultation to ensure understanding of the impact of the new regulations on non-profit organizations and businesses.

By implementing these new laws, the US Virgin Islands is taking a proactive approach to combating financial crime and maintaining its reputation as a responsible and compliant member of the global financial community.