British Virgin Islands

New Documents

BVI Regulator Announces Launch of Online AML Returns Platform

The British Virgin Islands Financial Services Commission issued a reminder to licensed entities concerning their regulatory obligations.

June 15, 2021

British Virgin Islands FSC Releases 2019 Annual Report, Highlights AML/CTF Work

The British Virgin Islands Financial Services Commission published its annual report for the year 2019, summarizing the regulator’s efforts to ensure compliance by licensed entities.

May 26, 2021

BVI Reminds Financial Institutions to File Prudential, AML/CTF 2020 Returns by May 15

May 4, 2021

CFATF Highlights AML/CTF Legislations Under Consideration by BVI

March 17, 2021

British Virgin Islands FSC Issues Alert on Jurisdictions Included in February 2021 FATF Statement

March 16, 2021

News

Midweek Roundup: Canadian AML Whistleblower Vanishes, US Treasury Revokes Gertler License, and More

Cryptocurrency exchange bans users in FATF gray-listed countries, encrypted messaging platform laundered funds through Panama and Luxembourg, and more, in the midweek roundup

March 10, 2021

Midweek Roundup: Yellen Pledges Swift AML Reform, Blinken Plans Sanctions Review, and More

Trump pardons Bannon, ABN Amro nears AML settlement, and more, in the midweek roundup.

January 20, 2021

Weekly Roundup: US Officials Target Ransomware Payments, Pennsylvania Bank Must Bolster AML Program, and More

October 2, 2020

Caribbean Banks Found Workarounds After Losing Correspondent Accounts

August 7, 2018

Midweek Roundup: EU Ministers Plan Stronger AML Supervision, Dutch Bank Anticipates Criminal Penalties, and More

June 27, 2018

Enforcement Actions

British Virgin Islands FSC: Mossack Fonseca & Co. (B.V.I) Ltd. Must Appoint Qualified Advisor on Business Affairs

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.

April 29, 2016

British Virgin Islands FSC Orders Mossack Fonseca & Co. (B.V.I) Ltd. to Cease Certain Business Activities

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.

April 29, 2016

BVI Fines Commonwealth Trust Limited $100,000 for AML/CTF Noncompliance

September 26, 2013

BVI’s Regulator Issues $2,500 Penalty Against Orbis Services Limited for AML/CTF Violations

September 26, 2013

Key Documents

British Overseas Territories Adopt UN Counter Terrorism Measures

October 9, 2001

UK Issues Anti-Terrorism Order 2002 Applicable to Six Overseas Territories

July 16, 2002

British Virgin Islands Imposes AML Obligations on Non-Financial Businesses

February 22, 2008

Bahamas Imposes Reporting Requirements on Investment Fund Operators

December 31, 2003

British Virgin Islands Issues Consolidated AML Code

February 22, 2008

British Virgin Islands Enacts Proliferation Financing (Prohibition) Act of 2009

November 11, 2009

British Virgin Islands Issues New Act to Regulate MSBs, Financing Companies

June 29, 2009

BVI Governor in Council Issues Order for Enforcement of Confiscation Orders from Other Countries

September 29, 1999

British Virgin Islands Authorizes Seizure of Criminal Proceeds

September 30, 1997

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)