Director of the Financial Investigation Agency (FIA) Mr Errol George said the intention of the international bodies was to make it difficult for jurisdictions, especially financial offshore centres, to be able to fully meet the requirements under international obligation in relation to anti-money laundering and terrorist financing. Photo: VINO/File

Mr George was at the time responding to questions from Minister for Health and Social Development the Honourable Ronnie W. Skelton, who had asked him about future initiatives of the institution. Photo: VINO/File

Under ‘staffing and expenses – salaries and wages’ the Agency in 2012 had an actual of $547,800. For 2013 the budgeted estimate under this head was $769,669 with a revised of $710,015 for the same year. However for 2014 the budgeted sum under this head is $924,458.

It is unclear what accounted for the increase in the staffing expenses as the report said nothing regarding increases in staffing numbers.

Total expenditure for the Agency for the year 2012 was budgeted at $1.259 million while the budgeted figure for 2013 was $2.166 million with the revised for 2013 ending up at $1.654 million. However, a sum of $2.094 million was budgeted for 2014.

See previous story posted on March 6, 2014:

Intl. bodies ‘shift goalpost’ on requirements – Errol George

- Making it difficult for the Territory to meet obligations in relation to money laundering and terrorist financing

ROAD TOWN, Tortola, VI - Director of the Financial Investigation Agency (FIA) Mr Errol George told the Standing Finance Committee (SFC) that it was difficult to anticipate future need for resources for the agency he heads because international bodies such as the Financial Action Task Force continue to shift the goalpost.

Speaking before the SFC as they deliberated the 2014 budget estimates some weeks ago, Mr George said the intention of the international bodies was to make it difficult for jurisdictions, especially financial offshore centres, to be able to fully meet the requirements under international obligation in relation to anti-money laundering and terrorist financing.

Mr George was at the time responding to questions from Minister for Health and Social Development the Honourable Ronnie W. Skelton, who had asked him about future initiatives of the institution.

In putting questions to Mr Julien N. Johnson Chief Operating Officer, Financial Investigation Agency (COOFIA), Member for the Third District Honourable Julian Fraser RA queried a figure under ‘Other Income’ in the Estimates and asked what this amount would have been generated from.

According to the SFC Report, Mr Johnson in responding to Hon Fraser stated it was a token figure that they included “in case there were opportunities for the Agency to generate some revenue of its own through the provision of services.”

Hon Fraser noted that in 2013 the Reserve Account was $ 3,065,526 and asked what the purpose was for these monies. To this question Mr Johnson stated that the account was a result of surplus balances they had had over the years.

In addition, he said that within the general reserve there was a training fund and an investigative fund and said these were perhaps the biggest areas of concern. Mr Johnson mentioned that the IPOC case had cost the Agency in excess of $2 million dollars, and the Reserve Account was to deal with such incidences as well as other Capital Projects that may arise.

Hon Fraser referred to the FIA’s 2014 Draft Budget Estimates and asked Mr. George whether he had seen the draft allocations in the budget for their agency. According to the report, Mr George responded that he had seen the document.

Hon Fraser then asked what the correlation was between the Draft Budget Estimates 2014 and British Virgin Islands Financial Investigation Agency 2014 Budget Estimates. To this query, Mr Johnson said that they were now seeing the difference in the figures allocated in the Budget. However, he noted that their budget reflected the total contribution from Government of $1,662,500 which was approved by the Board of the FIA in September 2013. He further added that the figure reflected a 5% reduction from 2013.