British Virgin Islands

New Documents

The British Virgin Islands issued the Lebanon (Sanctions) (Overseas Territories) Order 2020, which modifies the sanctions against Lebanon pursuant to the Sanctions and Anti-Money Laundering Act 2018.

The British Virgin Islands Financial Services Commission published its annual report for the year 2018, analyzing its efforts to meet its strategic aims of ensuring compliance with legislation aimed at safeguarding the financial industry

News

Enforcement Actions

The Financial Services Commission issued an enforcement action against the British Virgin Islands-based office of the Panamanian law firm requiring it to appoint a qualified person to advise it proper business conduct pursuant to the Financial Services Commission Act.

The Financial Services Commission of the British Virgin Islands issued a directive against the British Virgin Islands office of the Panamanian law firm pursuant to the Financial Services Commission Act, 2001. The directive orders the firm to restrict its business and refrain from entering contracts.


Important Facts

  • The U.S. State Department labels the British Virgin Islands as a major money laundering jurisdiction. The economy of this UK overseas territory depends greatly on tourism and the offshore financial sector. As of June 2019, its commercial banking sector had assets valued at $2.44 billion. Exploitation of its offshore financial services and the unique share structure that does not require a statement of authorized capital pose significant money laundering risks to the jurisdiction. It is a favored destination for incorporating new companies and registering shell companies. Also, its proximity to the U.S. Virgin Islands and the use of the U.S. dollar for its currency add risks for money laundering. The British Virgin Islands is a major target for drug traffickers, who use the area as a gateway to the United States. Know your customer and suspicious transaction report requirements cover banks, money services businesses, insurance companies, investment businesses, insolvency practitioners, trust and company service providers, attorneys, notaries public, accountants, auditors, yacht and auto dealers, real estate agents, dealers in precious stones and metals, dealers in other high-value goods, and non-profit organizations. The British Virgin Islands applies enhanced due diligence procedures to politically exposed person.
-Source: 2020 International Narcotics Control Strategy Report (INCSR)

Rankings

FATF i

Technical Effectiveness
Compliant : 18 High :
Largely Compliant : 15 Substantial :
Partially Compliant : 15 Moderate :
Non-Compliant : 1 Low :

BASEL i

Rank : N/A
Score : N/A

TRANSPARENCY INTERNATIONAL i

Rank : N/A
Score : N/A

Tax Justice Network i

Rank : 9/133
Score : 71/100