The Financial Action Task Force (FATF) is an intergovernmental organization that aims to combat money laundering, terrorist financing, and other financial crimes. In 2022, FATF published an assessment of the British Virgin Islands (BVI)’s anti-money laundering and counter-terrorism financing (AML/CFT) framework. The assessment found that the BVI had made significant progress in strengthening its AML/CFT framework, but some key deficiencies remain.
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Key Findings
The FATF’s assessment found that the BVI has made significant progress in the following areas:
- Legal and regulatory framework: The BVI has a comprehensive legal and regulatory framework that is in line with international standards.
- Enforcement: The BVI has a dedicated AML/CFT enforcement authority that has the resources and expertise to conduct investigations and prosecutions.
- Supervision: The BVI has a comprehensive supervisory framework for financial institutions that is in line with international standards.
- International cooperation: The BVI has a strong track record of cooperating with international law enforcement and regulatory agencies.
Deficiencies
However, the FATF’s assessment also found that the BVI has some key deficiencies, including:
- Risk assessment: The BVI needs to improve its understanding of the money laundering and terrorist financing risks it faces.
- Customer due diligence: The BVI needs to improve the way it collects and verifies customer information.
- Targeted financial sanctions: The BVI needs to improve its implementation of targeted financial sanctions.
FATF Recommendations
The FATF has made a number of recommendations to the BVI to address these deficiencies, including:
- Conducting a national risk assessment to identify and assess the money laundering and terrorist financing risks facing the BVI.
- Developing and implementing a national AML/CFT strategy to address the identified risks.
- Strengthening the supervision of financial institutions to ensure that they are effectively implementing AML/CFT measures.
- Enhancing the collection and verification of customer information by financial institutions.
- Improving the implementation of targeted financial sanctions.
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Fatf British Virgin Islands
Conclusion
The FATF’s assessment found that the BVI has made significant progress in strengthening its AML/CFT framework. However, some key deficiencies remain. The BVI has committed to addressing these deficiencies and has developed an action plan to do so. The FATF will continue to monitor the BVI’s progress and will conduct a follow-up assessment in due course.
