Virgin Islands Takes Major Step Forward in Combating Financial Crime

Strengthening Laws to Combat Money Laundering, Terrorism, and Proliferation Financing

The Virgin Islands has taken a significant step forward in its efforts to combat financial crime with the passage of three critical bills aimed at countering money laundering, terrorism, and proliferation financing. The legislation gives local authorities more power to investigate such crimes, introduces harsher prosecution measures, and creates a new council to oversee the financial services sector.

Key Bills Passed

1. Criminal Justice (International Cooperation) (Amendment) Act, 2021

• Gives statutory recognition to the Council of Competent Authorities
• Ensures the territory’s compliance with international standards on anti-money laundering and regulates the financial services sector

“This allows for all the territory’s competent authorities to work much more closely together,” said Attorney General Dawn Smith. “The Council of Competent Authorities will play a crucial role in preventing and detecting money laundering, terrorism financing, and other white-collar crimes.”

2. Counter-Terrorism Act, 2021

• Focuses on the detection, prevention, prosecution, and conviction of terrorist activities within the territory
• Specifies the offences and penalties associated with terrorist acts in the VI, including up to lifelong imprisonment for involvement in detonating devices that cause death or destruction

“This bill is indeed an extensive one, and it marks the territory’s development as a jurisdiction called upon to conform to international standards,” said Attorney General Smith.

3. 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

“The FIA plays a very important role in the global financial network, especially in the industry that we depend so heavily on in terms of economic viability,” said Opposition Leader Marlon Penn. “This legislation is critical for maintaining our good standing in the financial sector.”

Conclusion

The passage of these bills marks an important step forward in ensuring the Virgin Islands’ compliance with international standards and protecting its financial sector from illicit activities. The new laws will enable local authorities to more effectively investigate and prosecute crimes related to money laundering, terrorism, and proliferation financing, ultimately making the territory a safer place for businesses and residents alike.