Virgin Islands Enhances Regulatory Frameworks for Financial Crime Prevention
In a bid to stay ahead of international standards, the Virgin Islands has passed three key bills aimed at countering money laundering, terrorism, and proliferation financing. The legislation now awaits Governor John Rankin’s assent.
New Legislation Aims to Strengthen Anti-Crime Measures
The trio of bills - the Criminal Justice (International Cooperation) (Amendment) Act, 2021; the Counter-Terrorism Act, 2021; and the Financial Investigation Agency (Amendment) Act, 2021 - were passed by the House of Assembly on June 24. The first was Gazetted in March.
Key Provisions of the Bills
- Counter-Terrorism Act, 2021:
- Focuses on detection, prevention, prosecution, and conviction of terrorist activities within the territory
- Specifies offences and penalties associated with terrorist acts, including lifelong imprisonment for involvement in detonating devices that cause death or extensive destruction
- Criminalises financing terrorism and addresses other offences such as recruitment, harbouring terrorists, and providing property to facilitate terrorist acts
- 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
Creation of Council of Competent Authorities
The first bill establishes the Council of Competent Authorities, which will ensure the VI’s compliance with international law on anti-money laundering and help regulate the financial services sector and tax administration. The council will comprise:
- Governor’s Office
- Attorney General’s Chambers
- Financial Investigation Agency
- International Tax Authority
- Financial Services Commission
Government Officials Weigh in
- Attorney General Dawn Smith: “Giving statutory recognition to the council will enable all competent authorities to work more closely together. This legislation marks our development as a jurisdiction called upon to conform to international standards.”
- Premier Andrew Fahie: “Enacting measures to better protect the financial sector is especially important now considering overseas territories have seen significant funding cuts since the pandemic.”
- Opposition Leader Marlon Penn: “The importance of public consultation to ensure that persons understand what impact, if any, this legislation will have on them. We also need communication with non-profit organisations and businesses in the territory so they can comply with new regulations.”
The bills now await Governor Rankin’s assent before coming into effect.