Junior Minister for Financial Services, Trade and Economic Development, Hon Lorna G. Smith (AL), has said the targeted two-year timeline to be removed from the Financial Action Task Force’s (FATF) grey list is normal. Photo: Facebook

The Virgin Islands was placed on the Financial Action Task Force’s grey list on June 13, 2025, for the very first time. Photo: Internet Source

Junior Minister for Financial Services, Trade and Economic Development, Hon Lorna G. Smith (AL) said being placed on the FATF’s grey list is viewed as a positive step in the VI’s continued development as a well-regulated cooperative and internationally respected financial jurisdiction. Photo: FSC

The Virgin Islands (VI) was placed on the FATF’s grey list on June 13, 2025, and Hon Smith said that while it did not come as a surprise to her, they only became aware of the FATF’s decision that same day. 

“Given our close collaboration with the FATF team over the last several months, it was no surprise that we were going to be under increased monitoring," Hon Smith said during a press conference yesterday, Monday, June 23, 2025. 

2-year timeline normal

Hon. Smith explained that the two-year timeline was established by the FATF, noting, “It sounds like a long time, but the Financial Action Task Force meets three times a year.”

She also explained that the process could take 12 or 18 months; however, there would also be an additional six-month period where the FATF would have to do an onsite assessment and report back. 

“So that’s the timeframe, but it is important to say that it has been acknowledged by the Financial Action Task Force…that the BVI has completed a lot of the actions, a significant number of the actions…and there were six areas that we would need to complete. I am confident that we will finish within the two-year period.”

Grey listing is ‘not a sanction’

Increased monitoring or being on the grey list, Hon Smith said, is not a sanction or indication of failure. 

“It is a recognition that while we have made substantial progress in improving our anti-money laundering and counter terrorism framework, a few key areas remain that we must show effectiveness in. It is also a recognition of our desire and also our intent to work with the FATF as this process continues.”

Hon Smith also said this is viewed as a positive step in the VI’s continued development as a well-regulated cooperative and internationally respected financial jurisdiction.