Virgin Islands Takes Bold Steps in Financial Regulation and Crime Prevention

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The government of the Virgin Islands has made a significant statement on March 5th, 2024, to enhance its financial regulatory framework. The announcement was made by Deputy Premier and Minister for Financial Services, Labour and Trade, Honourable Lorna Smith, OBE.

Recent Mutual Evaluation Report (MER) Spurs Action

The MER, conducted by the Caribbean Financial Action Task Force (CFATF), assessed the effectiveness of the Virgin Islands’ efforts against money laundering and terrorist financing. The report’s findings have prompted the government to take immediate action.

National Action Plan Launched

The government has launched a National Action Plan designed to address key vulnerabilities identified in the MER. Deputy Premier Smith emphasized the commitment to adopting and implementing the report’s recommendations, highlighting the importance of international cooperation and reputation.

Strengthening Financial Services Sector

As a major financial hub globally recognized, the Virgin Islands relies heavily on its financial services sector, which generates significant revenue for the government and drives economic sustainability. The government has reiterated its commitment to maintaining a clean, transparent, and highly regulated financial environment.

Anti-Money Laundering (AML) and Counter-Financing of Terrorism (CFT)

Since introducing the Anti-Money Laundering Code of Practice in 1999, the Virgin Islands has progressively strengthened its legislative and regulatory provisions. However, the latest CFATF evaluation indicates a need for further improvement.

Collective Responsibility

Deputy Premier Smith underscored the collective responsibility of both public and private sectors in combating illicit financial flows and ensuring the Virgin Islands remains an uninviting terrain for financial criminals.

Commitment to Global Financial Security Standards

The Deputy Premier highlighted her participation in the CFATF Plenary in November 2023, where the Virgin Islands’ commitment to addressing identified issues was clear. The message is unequivocal: the Virgin Islands is determined to attract only reputable business and will continue to strengthen its efforts to mitigate risks and prosecute financial crimes.

Collaborative Approach

The development reflects the Virgin Islands’ dedication to global financial security standards and underscores the collaborative approach between government bodies, regulatory authorities, law enforcement, and the private sector in safeguarding the integrity of its financial system.

Conclusion

As the territory embarks on this crucial journey towards enhanced regulatory and enforcement mechanisms, Deputy Premier Smith’s statement reassures local and international communities of the Virgin Islands’ resolve to lead by example in financial services regulation and crime prevention. The progress of these initiatives is eagerly awaited by stakeholders worldwide, as the Virgin Islands continues to uphold its reputation as a secure and reputable global financial centre.