Virgin Islands Takes Bold Steps to Combat Financial Crime
In a move to stay ahead of changing international standards, the House of Assembly in the Virgin Islands has passed three bills aimed at countering money laundering, terrorism, and proliferation financing. The measures, awaiting Governor John Rankin’s assent, grant authorities greater powers to investigate such crimes, impose harsher penalties for offenders, and establish a new council to oversee the financial services sector.
Key Provisions of the Bills
Criminal Justice (International Cooperation) (Amendment) Act, 2021
- Grants authorities greater powers to investigate money laundering and related offenses
- Imposes harsher penalties for offenders
- Establishes the Council of Competent Authorities to oversee the financial services sector and tax administration
Counter-Terrorism Act, 2021
- Focuses on detecting, preventing, prosecuting, and convicting terrorist activities within the territory
- Specifies offenses and penalties associated with terrorist acts, including up to lifelong imprisonment for involvement in detonating devices that cause death or destruction
- Criminalizes financing terrorism and includes provisions addressing recruitment, harbouring terrorists, and providing property to facilitate such acts
Financial Investigation Agency (Amendment) Act, 2021
- Redefines the agency’s role in investigating money laundering, terrorism, and proliferation financing
- Grants the agency greater powers to seek documents, examine individuals under oath, and take enforcement action
- Aids in preparing for the upcoming mutual evaluation
Significance of the Bills
The passage of these bills marks a significant step forward for the territory’s efforts to maintain its good standing in the financial sector. The measures are seen as critical in combating financial crime, particularly amid scrutiny from international organizations and the Commission of Inquiry.
Premier’s Statement
Premier Andrew Fahie emphasized the importance of protecting the financial sector, given significant funding cuts faced by overseas territories since the pandemic. He noted that “the attacks are coming from several angles” and urged for vigilance in guarding against financial crime.
Opposition Leader’s Call for Public Consultation
Opposition Leader Marlon Penn called for public consultation to ensure that non-profit organizations and businesses understand the impact of the new regulations. He emphasized the need to “ensure that we are guarded, our firewall is updated, and our people are well-trained to meet the needs of this industry.”