A Virgin Islands delegation travelled to France this week to attend a meeting where a global financial watchdog is expected to decide whether to sanction the VI for falling short in its efforts to tackle money crime.
Financial Services and Economic Development Junior Minister Lorna Smith is leading the VI representatives to the joint plenary session of the Financial Action Task Force and its European regional partner MONEYVAL in Strasbourg.
At the two-day session, which is scheduled to start today, the FATF is to consider whether to put the VI on its “grey list” of jurisdictions that require increased financial monitoring.
“This visit is an opportunity to reaffirm the Virgin Islands’ vital role as a constructive and cooperative partner in the global fight against financial crime,” Ms. Smith said before her departure, adding, “I look forward to meeting with my fellow delegates and discussing with them how we can work together to continue strengthening our financial system so that the BVI continues to be a best-in-class jurisdiction that demonstrates excellence, innovation and leadership in the region and beyond.”
The team is also expected to obtain insight into international standards for deterring money laundering, terrorism financing and proliferation financing, according to government.
Additionally, delegates aim to highlight the territory’s work to comply with best practices in these areas.
To that end, they will host discussions on the implementation of recent measures that enhanced the government’s ability to use intelligence to support money-laundering and terrorist-financing investigations, according to government, which promised further updates after the plenary session.
Besides Ms. Smith, the delegation includes Attorney General Dawn Smith, National Anti-money Laundering Coordinator Lavonna Burrows, and Financial Services Commission Deputy Managing Director of Regulation Glenford Malone.
CFATF report
The grey-list threat has been looming since February 2024, when the FATF’s regional branch, the Caribbean Financial Action Task Force, released a withering report following its mutual evaluation review of the VI.
Since then, the government has said it has been working hard to comply with the CFATF recommendations, including by passing a raft of new legislation in the House of Assembly.
But experts have suggested that the territory’s chances of being grey-listed increased following the release this April of the second volume of a law-enforcement review by His Majesty’s Inspectorate of Constabulary and Fire and Rescue Services.
That report noted “problems with BVI agencies’ capacity and capability to tackle illicit finance.”
But leaders including Premier Natalio “Sowande” Wheatley have said the government is prepared to deal with any fallout from a potential grey-listing.
