The Honourable Lorna Smith, OBE, Junior Minister for Financial Services and Economic Development, and the Honourable Attorney General Dawn J. Smith led the Virgin Islands delegation. Photo: Facebook

The Financial Action Task Force (FATF) has recognised the Virgin Islands’ progress in strengthening its defences against money laundering, terrorist financing and proliferation financing, following the Territory’s participation in the FATF Plenary in Paris from 26–30 October 2026. Photo: Facebook

The Territory remains under FATF increased monitoring, but the latest assessment acknowledges substantial movement on key commitments.

Delegation Reaffirms Commitment

According to a press release, Honourable Lorna Smith, OBE, Junior Minister for Financial Services and Economic Development, and the Honourable Attorney General Dawn J. Smith led the Virgin Islands delegation. It also included Glenford V. Malone, Deputy Managing Director and Regulation at the Financial Services Commission, and Ayana I. Glasgow, Director of Financial Services in the Ministry of Financial Services, Economic Development and Digital Transformation.

This was the Virgin Islands’ third formal report to the FATF since it entered the increased monitoring process. The delegation said all action items were either completed, progressing, or ahead of the agreed timetable, and reaffirmed the Government’s commitment to delivering the FATF Action Plan.

Beneficial Ownership and SARs

The release added that FATF specifically acknowledged that the Virgin Islands’ beneficial ownership regime substantially meets requirements for maintaining accurate and up-to-date information. It also recognised concrete improvements in the quality of Suspicious Activity Reports (SARs) submitted by financial institutions and designated non-financial businesses and professions.

The progress follows the Territory’s high-level political commitment in June 2025 to work with the FATF and the Caribbean Financial Action Task Force (CFATF) to strengthen its anti-money laundering and counter-terrorist financing framework. FATF’s October 2026 statement also notes that the Virgin Islands has improved reporting aligned with risk and increased resources within law enforcement authorities.

Remaining Work on Track

The advances form part of the revised National Strategic Action Plan, which has delivered improvements in threat understanding, risk-based supervision, regulatory oversight, and the capacity of law enforcement and prosecutors to investigate financial crime.

The FATF has identified continuing priorities, including stronger risk-based supervision of trust and company service providers, investment businesses and virtual asset service providers; sanctions for beneficial-ownership breaches; better international dissemination of financial intelligence; more systematic money-laundering investigations and prosecutions; and greater seizure and confiscation of criminal proceeds. The Government said the remaining commitments remain on track for completion in 2027.

During the Plenary, the delegation held bilateral meetings with FATF heads of delegation from several countries. In particular, it met the United Kingdom delegation and expressed support for the FATF Work Plan under the UK Presidency.

Government Response

Attorney General Dawn J. Smith said the progress reflects coordinated work across government, regulators, competent authorities, law enforcement and the private sector. “In the months ahead, we will continue to actively build on these achievements and complete the outstanding actions within the agreed timeframe to ensure that the measures implemented deliver meaningful and lasting results.”

Junior Minister Lorna Smith said the Territory has demonstrated its ability to provide timely, accurate and up-to-date beneficial ownership information and to identify suspicious transactions.

“We have substantially addressed many key requirements outlined under our Action Plan and are well on track to meet our commitments in 2027,” she said. “The progress achieved to date has significantly strengthened our ability to tackle illicit finance and demonstrates that we continue to be a proactive member of the international financial community whose contributions are trusted and recognised.”