Virgin Islands Enhances Financial Crime Investigation Methods Amid Global Scrutiny
New Legislation Aims to Combat Money Laundering, Terrorism, and Proliferation Financing
The Virgin Islands (VI) has passed a trio of bills aimed at strengthening its financial crime investigation methods, ensuring compliance with international anti-money laundering laws. The legislation now awaits Governor John Rankin’s assent.
Key Provisions of the Bills
- Criminal Justice (International Cooperation) (Amendment) Act, 2021: Gives authorities more power to investigate financial crimes and allows for harsher prosecution.
- Counter-Terrorism Act, 2021: Focuses on detecting, preventing, prosecuting, and convicting terrorist activities within the territory. Specifies offences and penalties associated with terrorist acts, including up to lifelong imprisonment for involvement in detonating devices that cause death or destruction.
- Financial Investigation Agency (Amendment) Act, 2021: Redefines the FIA’s role in investigating money laundering, terrorism, and proliferation financing. Gives the FIA more liberty to seek documents, examine people under oath, and take enforcement action.
Council of Competent Authorities Established
The legislation establishes a new council, the Council of Competent Authorities, which will ensure compliance with international anti-money laundering laws and regulate the financial sector and tax administration.
“This allows for all the territory’s competent authorities, which are the Governor’s Office, the Attorney General’s Chambers, the Financial Investigation Agency, the International Tax Authority, and the Financial Services Commission, to work much more closely together,” said Attorney General Dawn Smith.
Importance of Public Consultation
Opposition Leader Marlon Penn emphasized the importance of public consultation to understand the impact of these laws on non-profit organizations and businesses in the territory.
“The FIA is what I call the firewall between our financial system and those who wish to do illicit activity through our financial system,” he said. “One of the things that is important coming out of this exercise is that there needs to be a level of public consultation to at least allow persons to understand what, if any, is the impact coming to them out of this legislation.”
Enacting Measures for Caribbean Financial Action Task Force Evaluation
The bills are seen as a critical step in preparing for the territory’s Caribbean Financial Action Task Force evaluation next year. Premier Andrew Fahie said enacting measures to better protect the financial sector is especially important now considering overseas territories have seen significant funding cuts since the onset of the pandemic.
“The attacks are coming from several angles,” he said. “We have to ensure that we are guarded, our firewall is updated, and our people are well trained to be able to meet the needs of this industry, and by extension the needs of our people and our economy.”