Financial Intelligence Unit Established in Virgin Islands, U.S.

Efforts to Combat Money Laundering, Associated Predicate Offenses, and Terrorist Financing

The Financial Intelligence Unit (FIU) has been established in the Virgin Islands, U.S. to combat money laundering, associated predicate offenses, and terrorist financing. The FIU serves as a national center for receiving and analyzing suspicious transaction reports and other relevant information.

Functions of the Financial Intelligence Unit

• Receiving and analyzing disclosures from reporting entities, including financial institutions and designated non-financial businesses and professions (DNFBPs)
• Conducting operational analysis to identify specific targets
• Conducting strategic analysis to identify trends and patterns related to money laundering and terrorist financing

Access to Information

The FIU has the authority to obtain additional information from reporting entities as needed to perform its analysis properly. It also has access to: + Financial, administrative, and law enforcement information from other sources, including open or public sources and commercially held data + Additional information obtained through agreements with international financial intelligence units and other organizations

Security and Confidentiality

• Information received, processed, held, or disseminated by the FIU must be securely protected and used only in accordance with agreed procedures and applicable laws and regulations
• The FIU has rules in place governing the security and confidentiality of information, including procedures for handling, storage, dissemination, and protection

Operational Independence

The FIU is operationally independent and autonomous, with the authority to carry out its functions freely. It has the right to forward or disseminate information to competent authorities without undue influence or interference.

Partnership with the Egmont Group

The FIU will apply for membership in the Egmont Group to facilitate international cooperation and information exchange. The unit regards the Egmont Group’s Statement of Purpose and Principles for Information Exchange Between Financial Intelligence Units for Money Laundering and Terrorism Financing Cases.

Large Cash Transaction Reporting

The FIU is considering the feasibility and utility of a system where financial institutions and DNFBPs would report all domestic and international currency transactions above a fixed amount.

Conclusion

The establishment of the Financial Intelligence Unit in the Virgin Islands, U.S. marks an important step in the country’s efforts to combat money laundering, associated predicate offenses, and terrorist financing. The unit will play a critical role in identifying and disrupting illegal financial activities, and will work closely with other domestic and international authorities to achieve its objectives.