Financial Crime World

Virgin Islands Takes Step towards Strengthening Financial Crime Prevention Measures

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The Virgin Islands’ House of Assembly has taken a significant step to stay ahead of changing international standards by passing three bills aimed at countering money laundering, terrorism, and proliferation financing. The legislation, which now awaits Governor John Rankin’s assent, will give authorities more power to investigate such crimes, introduce harsher prosecution measures, and establish a new council to oversee the financial services sector.

Key Bills Passed

The three bills passed on June 24 include:

  • Criminal Justice (International Cooperation) (Amendment) Act, 2021: Formalizes the creation of the Council of Competent Authorities, which will ensure compliance with international law on anti-money laundering and regulate the financial services sector.
  • Counter-Terrorism Act, 2021: Focuses on detecting, preventing, and prosecuting terrorist activities within the territory. The bill specifies offenses and penalties associated with terrorist acts, including lifelong imprisonment for those involved in detonating devices that cause death or destruction.
  • Financial Investigation Agency (Amendment) Act, 2021: Redefines the agency’s role in investigating money laundering, terrorism, and proliferation financing. The legislation will also aid with preparing for the upcoming mutual evaluation.

Importance of Strengthening Financial Crime Prevention Measures

Attorney General Dawn Smith emphasized that giving the Council of Competent Authorities statutory recognition will enable the territory’s competent authorities to work closely together in tackling financial crimes. “This allows for all the territory’s competent authorities to work much more closely together,” she said.

Health and Social Development Minister Carvin Malone highlighted the importance of maintaining the territory’s good standing in the financial sector, particularly amid heavy scrutiny brought on by the Commission of Inquiry.

Premier Andrew Fahie emphasized the need to protect the financial sector, citing significant funding cuts faced by overseas territories since the onset of the pandemic. “Even the United Nations have recognised the BVI on how we have handled Covid-19,” he said.

Benefits of Strengthening Financial Crime Prevention Measures

  • Enhanced cooperation between authorities in tackling financial crimes
  • Improved compliance with international law on anti-money laundering
  • Stronger protection for the financial sector against money laundering, terrorism, and proliferation financing
  • Better preparedness for upcoming mutual evaluation