More reforms to combat money crime are on the way as the Virgin Islands works to avoid censure from international financial watchdogs.
With a crunch meeting of the Paris-based Financial Action Task Force looming next month, Premier Natalio “Sowande” Wheatley hailed two documents recently completed by his government.
One is an extensive action plan for preventing financial crime in the territory; the other is an assessment designed to enhance efforts to fight international terrorism financing.
With the FATF expected to consider the VI’s situation at its coming meeting, the territory is keen to avoid being placed on the watchdog’s “grey list” of jurisdictions that receive increased fiscal scrutiny.
Both documents were informed by recommendations in the Mutual Evaluation Report released in February 2024 by the FATF’s regional branch, the Caribbean Financial Action Task Force.
That withering assessment was widely seen as a warning to the VI that it needed to get its financial house in order.
And since then, the government has passed a flurry of legislation designed to meet the report’s recommendations and curry favour with the FATF.
The watchdog usually takes between 12 and 18 months from a Mutual Evaluation Report to decide whether to censure a particular jurisdiction — a timeline that suggests that the June meeting could be pivotal for the VI.
Premier’s praise
On Friday, Mr. Wheatley welcomed the release of both documents.
“This National Action Plan affirms the Virgin Islands’ unwavering commitment to protecting the integrity of our financial system and meeting international standards,” said Mr. Wheatley, who chairs the National Anti-Money Laundering Coordinating Council. “It is a forward-looking strategy that balances robust regulatory safeguards with practical, risk-based implementation.”
The plan, which was approved by the NAMLCC on Feb. 21, outlines legislative, regulatory, institutional and operational priorities designed to meet FATF standards.
It is designed to support the implementation of the territory’s 2024-2026 strategy for countering money laundering and financing for terrorism and proliferation, according to government.
To that end, it assigns responsibilities to agencies including the Financial Investigation Agency, the Financial Services Commission, the Attorney General Chambers, the Royal Virgin Islands Police Force, and the Ministry of Financial Services, Economic Development and Digital Transformation.
The premier also praised the Terrorist Financing Risk Assessment 2025, which he said will boost the VI’s appeal to investors by reassuring them that the territory is adhering to FATF standards.
“This risk assessment underscores the Virgin Islands’ commitment to proactive, data-driven decision-making in the fight against terrorist financing,” he said. “We take our responsibility to uphold international standards extremely seriously, and this underpins our appeal as a reputable international financial centre.”
The premier also signalled that the assessment, which itself is a follow-up to a 2020 report, would lead to changes in the law.
“These findings will guide our next phase of reforms, including the enhancement of regulatory frameworks for virtual assets, strengthened coordination among law enforcement, and continued improvement of our sanctions enforcement regime,” he said.
‘Low risk’
The government-commissioned report found that the territory “continues to present a low risk for the collection and use of terrorist funds.”
However, it states that one area of “medium-high risk” that requires further consideration is the potential movement of terrorist funds through VI entities, particularly via virtual asset platforms and business companies.
“This risk is elevated by the potential misuse of complex structures, cross-border transactions, and rapidly evolving technologies,” the report states.
The assessment also calls for enhanced training for frontline agencies, better detection of virtual asset-related threats, and strengthened data sharing between domestic and international counterparts in order to combat the terrorist-financing risk.
