Financial Crime Prevention Strategies Adopted in US Virgin Islands
The United States Virgin Islands has taken a significant step towards combating money laundering, terrorism, and proliferation financing by passing three bills aimed at strengthening its financial crime prevention measures.
Council of Competent Authorities Established
The first bill establishes the Council of Competent Authorities, a body responsible for ensuring compliance with international anti-money laundering laws and regulating the financial services sector and tax administration. This move comes after Cabinet initially approved establishing the council in 2017. Attorney General Dawn Smith emphasized that giving the body statutory recognition will enable it to carry out its mandates more effectively.
Counter-Terrorism Measures Implemented
The second bill focuses on counter-terrorism, specifying offenses and penalties associated with terrorist activities within the territory. The legislation levies up to lifelong imprisonment for involvement in detonating devices causing death, serious bodily injury, or extensive destruction, including nuclear and biological weapons. It also criminalizes financing terrorism and addresses other offenses such as recruitment, harbouring terrorists, and providing property to facilitate terrorist acts.
Enhanced Financial Investigation Agency Powers
The third bill redefines the Financial Investigation Agency’s role in investigating money laundering, terrorism, and proliferation financing, granting it greater authority to:
- Seek documents
- Examine individuals under oath
- Take enforcement action
This legislation aims to aid in preparing for the territory’s upcoming Caribbean Financial Action Task Force evaluation next year.
Premier’s Perspective
Premier Andrew Fahie emphasized the importance of enacting measures to better protect the financial sector, particularly given overseas territories have faced significant funding cuts since the onset of the pandemic. He noted that even the United Nations has recognized the US Virgin Islands’ handling of COVID-19.
Opposition Leader’s Comments
Opposition Leader Marlon Penn highlighted the Financial Investigation Agency’s crucial role in the global financial network and emphasized the need for public consultation to ensure transparency and clarity regarding the new regulations.
Conclusion
The bills are seen as a critical step in maintaining the territory’s good standing in the financial sector, especially amid heavy scrutiny brought on by the Commission of Inquiry. As one of the world’s leading offshore financial centers, the US Virgin Islands is committed to staying ahead of emerging threats and ensuring the integrity of its financial system.