Financial Crime World

Virgin Islands Takes Bold Steps in Financial Regulation and Crime Prevention

The government of the Virgin Islands has taken a significant step towards enhancing its financial regulatory framework following the release of the Caribbean Financial Action Task Force’s (CFATF) Mutual Evaluation Report (MER). The report assessed the territory’s efforts against money laundering and terrorist financing, highlighting areas that require improvement.

Implementing Recommendations

Deputy Premier and Minister for Financial Services, Labour and Trade, Honourable Lorna Smith, OBE, delivered a statement on March 5th, 2024, emphasizing the government’s commitment to implementing the report’s recommendations. This includes the development of a National Action Plan designed to strengthen anti-money laundering (AML) and counter-financing of terrorism (CFT) measures.

Strengthening AML/CFT Framework

The Virgin Islands, a major financial hub, relies heavily on its financial services sector, which contributes significantly to government revenues and economic sustainability. To maintain a clean, transparent, and highly regulated environment, the government has vowed to bolster its AML/CFT framework.

  • Since introducing the Anti-Money Laundering Code of Practice in 1999, the Virgin Islands has strengthened its legislative and regulatory provisions over time.
  • However, the latest CFATF evaluation indicates that further efforts are needed to combat illicit financial flows and ensure the territory remains an uninviting terrain for financial criminals.

International Cooperation

Deputy Premier Smith highlighted the importance of international cooperation and reputation at the CFATF Plenary in November 2023. The Virgin Islands’ commitment to addressing identified issues was evident, and the message was clear: the Virgin Islands is determined to attract only reputable business and is committed to mitigating risks and strengthening financial crime prosecution.

Collaborative Approach

This development not only reflects the territory’s dedication to global financial security standards but also underscores its collaborative approach between government bodies, regulatory authorities, law enforcement, and the private sector in safeguarding the integrity of its financial system.

Commitment to Financial Security

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