The XXXVI Plenary of the Caribbean Financial Action Task Force (CFATF) is being held from November 12 – 15, 2012 at the Multipurpose Sports Complex and is the second time the Territory has hosted the event. The first was in 1999. Some 150 delegates from 29 member jurisdictions including 20 delegates from the Virgin Islands are attending the event. Photo: VINO/File

Mr Gonzalez was at the time speaking at the opening ceremony of the XXXVI Caribbean Financial Action Task Force (CFATF) Plenary at the Multipurpose Sports Complex in Road Town on November 14, 2012.

“After three rounds of assessments it is acknowledged that despite high levels of compliance in some jurisdictions, which we call our centre of excellence which include the Virgin Islands, the levels compliance with FATF recommendations generally amongst the membership are not particularly encouraging.”

Mr Gonzalez said, however, that over the past two years, the Virgin Islands has been playing another important role in encouraging those countries with weaker Mutual Legal Assistance (MLA) CFATF regimes to expedite the pace with which they rectify the deficiencies identified in their mutual evaluation report.

The Chairman noted also that over the past two years the CFATF undertook a process of reflection and introspection, which though at times was difficult, has proven to be very beneficial to the long term prospects of the organisation and consequently “we would recommend such an exercise to our partners within the global anti-money laundering and combating the financing of terrorism network.  

The Virgin Islands is currently the Deputy Chair of CFATF and will assume the position of Chair at the conclusion of the Plenary today November 15, 2012.

“I am confident that as chair the Virgin Islands, with the support and goodwill of all our members and our long standing regional and international partners will build upon the foundation of our growing achievements so that it can be sustained well into the future.”

Mr Gonzalez recalled that the last time the CFATF Plenary was held in the Virgin Islands was some 12 years ago when the Territory assumed the mantle of leadership with the Honourable Dancia Penn, who became the first woman to hold the position of CFATF Chair with Director of Financial Services Commission Mr Robert Mactavious undertaking the formal duties as chair shortly after and bringing to the task at hand visionary and steady guidance during a period of guidance when several CFATF members were identified globally as having weak anti-money laundering systems.

“It is therefore particularly special that at this juncture that the CFATF members have unanimously agreed once more to entrust the steward of this organisation...”

Mr Gonzalez concluded by saying the Virgin Islands has been and in no doubt will continue to be an asset to the CFATF.

President of FATF Bjorn S. Aamo said that part of the revised recommendation of the FATF was the introduction of a Risk-Based Approach as overriding part of the existing methodology.

He said the purpose of the Risk-Based Approach was to allow a more efficient allocation of resources to combating money laundering and terrorist financing both by governments and financial institutions. He explained that it was a simple formula of using more resources where the risks are higher and less resources where the risks are lower.

“This approach should also make it easier to promote financial inclusion.”

The greatest challenge to money laundering and economic crime, Mr Aamo said, “is where people are staying outside organised financial industry. We can see that in this region as well as other regions that there is a vicious circle where people are staying outside.” This tendancy, he said, fosters criminality and hampers growth. “So if we can bridge the door for the entrance into the financial market for those who are still outside we will get into a win win situation.”

Premier Dr the Honourable D. Orlando Smith said as a tourist destination and a premier financial services jurisdiction, the Virgin Islands understands just how well good reputation matters. He also said a hike in the level of criminality in society would likely keep visitors away and if a blind eye is turned to any abuse of legitimate business structures, those engaged in money laundering, terrorist financing and other forms of financial crime will see a haven in the Virgin Islands.

“These will create a serious dent in our reputation as a tourist-friendly jurisdiction and a well-established international finance centre.”

Consequently, the Premier said, the only recourse is to build and strengthen law enforcement defences, in addition to ensuring the enactment of appropriate legislations that comply with established standards to curb the spread of criminality.

The XXXVI Plenary of the Caribbean Financial Action Task Force (CFATF) is being held from November 12 – 15, 2012 and this is the second time the Territory has hosted the event. The first was in 1999.

Some 150 delegates from 29 member jurisdictions including 20 delegates from the Virgin Islands are attending the event.

The CFATF is an organisation of twenty-nine states of the Caribbean Basin, which have agreed to implement common measures to address the problems of money laundering and terrorist financing. The main objective of the CFATF is to achieve effective implementation of and compliance with global standards on the detection and prevention of money laundering, terrorist financing and other forms of financial crime.