British Virgin Islands: Detailed Assessment Report on Anti-Money Laundering and Combating the Financing of Terrorism

IMF Staff Country Reports, February 27, 2024

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Canonical URL: British Virgin Islands: Detailed Assessment Report on Anti-Money Laundering and Combating the Financing of Terrorism

The paper summarizes the anti-money laundering/combating the financing of terrorism (AML/CFT) measures in place in the Virgin Islands (VI).
The overall understanding of ML and TF risks in the VI is fair and narrow, particularly with respect to the design of VI legal persons and legal arrangements, and their misuse abroad.
All banks and some legal practitioners demonstrated a good understanding of their ML risks and AML/CFT obligations.
The VI generally provides mutual legal assistance within a reasonable timeframe and its quality is generally good.
Competent authorities were able to demonstrate their ability to furnish basic and beneficial ownership information in a timely manner in the context of international cooperation requests.
The VI does not proactively seek international cooperation, and the VI has not investigated or prosecuted any cases of misuse of legal persons and arrangements.
The law should be amended to provide for the full range of powers to carry out financial and complex investigations as well as effective, proportionate, and dissuasive sanctions for ML, whether such ML relates to drug offences or other crimes.

Overall understanding of ML and TF risks: "fair and narrow."
Specific weakness highlighted: risks related to the design of VI legal persons and legal arrangements, and their misuse abroad.
Sectoral note: "All banks and some legal practitioners demonstrated a good understanding of their ML risks and AML/CFT obligations."

Mutual legal assistance: generally provided within a reasonable timeframe; quality generally good.
Provision of ownership information: competent authorities demonstrated ability to furnish basic and beneficial ownership information in a timely manner in the context of international cooperation requests.
Proactivity: competent authorities "do not proactively seek international cooperation."

No investigations or prosecutions recorded for misuse of legal persons and arrangements in the VI.
Legal gaps identified:
- Law should be amended to provide for the full range of powers to carry out financial and complex investigations.
- Law should provide for effective, proportionate, and dissuasive sanctions for ML, whether related to drug offences or other crimes.

Amend legislation to grant the full range of powers for financial and complex investigations.
Introduce or strengthen sanctions for ML that are effective, proportionate, and dissuasive, covering ML related to drug offences and other crimes.
Enhance proactive engagement in international cooperation and seek mutual legal assistance where appropriate.
Improve investigative and prosecutorial capacity to address misuse of legal persons and legal arrangements.