Financial Institution Risk Assessment in Virgin Islands, U.S.
In a bid to combat money laundering and terrorist financing, the financial sector of the Virgin Islands, U.S., is undergoing a comprehensive risk assessment. The Financial Services Commission has outlined specific guidelines for various entities to participate in this initiative.
Financial Institutions Under Scrutiny
All licensed financial institutions operating in the territory are required to complete questionnaires related to Financial Institutions and International Cooperation as part of their mandatory compliance with the Anti-Money Laundering and Terrorist Financing Code of Practice, 2008. These institutions include:
- Banking
- Financial leasing
- Securities and investment business
- Insurance
- Money or value transfer services
- Trust and company service providers
Designated Non-Financial Businesses and Professions Targeted
The code also applies to designated non-financial businesses and professions, including:
- Real estate agents
- Dealers in precious metals and stones
- Lawyers
- Notaries public
- Accountants
These entities are obligated to participate in the National Risk Assessment process by completing a questionnaire specifically designed for DNFBPs.
Non-Profit Organizations Under Microscope
Non-profit organizations (NPOs) operating in the Virgin Islands, whether registered or unregistered, are also required to complete a questionnaire related to their activities. NPOs that engage in charitable, religious, cultural, educational, social, or fraternal purposes and raise or disburse funds to achieve their objectives are subject to these requirements.
High-Value Goods Dealers Under Scrutiny
Businesses involved in buying and selling high-value goods such as:
- Boats
- Vehicles
- Jewelry
- Furniture
- Machinery
- Art
- Luxury items that involve cash transactions of $15,000 or more
are considered High Value Goods Dealers. These entities must also complete a questionnaire related to their activities.
Competent Authorities’ Role
The National Risk Assessment process also involves the participation of competent authorities, including:
- Governor’s Office
- Attorney General’s Chambers
- Financial Investigation Agency
- Financial Services Commission
- International Tax Authority
These authorities are responsible for combating money laundering and terrorist financing and must complete questionnaires related to their activities.
Conclusion
All entities falling under these categories are obligated to participate in this risk assessment initiative to ensure compliance with the Anti-Money Laundering and Terrorist Financing Code of Practice, 2008. By doing so, they will help strengthen the financial sector’s defenses against money laundering and terrorist financing threats.