Financial Sanctions and Embargoes in the USVI: A Guide

Introduction

The United States Virgin Islands (USVI) has implemented financial sanctions and embargoes to achieve specific foreign policy or national security objectives. These measures are put in place by the US government and can have significant implications for individuals and businesses operating within the territory.

What Are Financial Sanctions?

Financial sanctions, also known as targeted financial sanctions, are restrictive measures that limit access to financial markets, funds, economic resources, trade, and exports. They can include asset freezes, travel bans, and arms embargoes. Sanctions are typically imposed on individuals or entities involved in illicit activities, such as terrorism, nuclear proliferation, or human rights abuses.

Why Are Financial Sanctions Used?

The US government imposes financial sanctions to achieve several objectives:

• Coerce a regime or individual into changing their behavior
• Constrain access to key resources needed to continue offending behavior
• Signal disapproval and potentially isolate a regime or individual
• Protect the value of assets misappropriated from a country

Who Is Subject to Financial Sanctions?

Financial sanctions apply to:

• Any person in the USVI
• British citizens, Overseas Territories citizens, subjects, Nationals (Overseas), or protected persons who are ordinarily resident in the USVI
• Bodies incorporated or constituted under the laws of the Territory
• Individuals on-board a ship or aircraft registered in the Territory

Ensuring Compliance with Financial Sanctions Regime

Relevant entities and professionals must comply with financial sanctions legislation, including:

• Financial institutions registered in the USVI
• Designated Non-Financial Businesses and Professions (DNFBPs) and Non-Profit Organizations (NPOs)
• Individuals on-board a ship or aircraft registered in the Territory

To comply with the financial sanctions regime, relevant persons must:

1. Check if they maintain accounts or hold funds for designated individuals
2. Freeze such accounts and funds
3. Refrain from dealing with frozen assets unless licensed by the Office of the Governor
4. Report findings to the Office of the Governor
5. Provide additional information requested by the Office of the Governor

Failure to Comply with Financial Sanctions Legislation is a Criminal Offense.

Contact Information

Enquiries, reports, and license applications should be addressed to:

The Office of the Governor
Waterfront Drive
Road Town, Tortola VG1110
British Virgin Islands email protected