Premier Dr. Natalio “Sowande” Wheatley (left), and Opposition Leader Ronnie Skelton. (Composition: FILE PHOTOS)

The BVI Financial Investigation Agency is expected to get extra powers to combat money crime and terrorism financing under a bill the House of Assembly passed on Tuesday.

Premier Dr. Natalio “Sowande” Wheatley said the bill — which awaits assent from the governor after being expedited through the HOA in a single sitting — is needed to ensure the Virgin Islands remains a “big player” in global financial services.

He added that the FIA, which was established in 2003, needs the enhanced investigatory powers in order to address “technical shortcomings” identified in a scathing report about the territory released in February by the Caribbean Financial Action Task Force.

“These enhancements are crucial for empowering the FIA to fulfil its mandate more effectively and efficiently, ensuring it can address challenges and respond to the evolving landscape with greater authority and efficacy,” the premier told the HOA on Friday after introducing the Financial Investigation Agency (Amendment) Bill, 2024.

Under the proposed legislation, the FIA would be able to “initiate criminal investigations and to assist with, or facilitate, an investigation for any criminal proceeding,” the premier said.

Other provisions would require designated non-financial businesses and professions to be registered with the agency, Dr. Wheatley added.

Additionally, he said, the FIA would be empowered to make disclosures to foreign financial investigation agencies in order to report possible crimes.

New rules for NPOs

Dr. Wheatley, who is also finance minister and minister of financial services, added that the new legislation would “require the FIA to use all relevant sources of information or data to identify the types and features of non-profit organisations that may be at risk of being used for terrorist financing, including the nature of threats that may be posed to NPOs by individuals, groups or organisations with links to terrorism or terrorist financing.”

He also said the agency would adopt a risk-based approach to the supervision of designated non-financial businesses and professions and NPOs. These entities, he added, would need FIA approval in order to change directors, senior officers, or people holding a significant or controlling interest.

The measures would also expand the FIA’s powers “to order any person to refrain from committing or completing any transaction related to a suspicious activity transaction report for a period not exceeding 72 hours,” according to the premier.

Impact on NPOs

Opposition Leader Ronnie Skelton backed the bill.

“The world is in chaos, and we need to play a role in helping to see if we can elevate terrorist financing and all the illicit stuff that goes along with money laundering,” he said.

However, Mr. Skelton voiced concerns about the possible impact on local NPOs, like the BVI Red Cross and BVI Basketball Federation.

Lorna Smith, in her first parliamentary comments after being fired as deputy premier and financial services minister and joining the opposition last week, said she backed the changes as well.

Considered ‘deficient’

Referring to the CFATF report, Ms. Smith said, “We were considered to be deficient — and, in other words, not effective in these areas. It is hardly likely that you are going to find our [NPOs] — like the Rotary clubs, the Red Cross and so on — would be used for any illicit activities. Globally, we have committed, and we must make sure that we are fully compliant in terms of the legislation.”

Deputy Premier Julian Fraser, who crossed the floor of the House to replace Ms. Smith last week, also offered his backing.

“I support the bill,” he said. “Obviously, I have no choice, because territory’s survival is at stake when it comes to financial services and matters related to it. We have to do what we have to do in order to ensure that the financial sector is well regulated.”

Closing loopholes

The premier insisted that local non-profit bodies would not be detrimentally impacted by the bill.

“We have a risk-based approach, so nobody expects the Boy Scouts or the Girl Guides to be involved in terrorism activity or proliferation financing or laundering of money,” he said.

Dr. Wheatley also stressed the importance of tightening the territory’s legislation.

“While the requirements continue to increase on our government entities, our responsibilities increase, and the resources have to go where it needs to go to ensure that we have that type of regime if we want to continue being a player in this global industry,” he said.