The Virgin Islands has been deemed Compliant or Largely Compliant with all 40 Financial Action Task Force (FATF) Recommendations. Photo: VINO/File

Despite negative speculations surrounding the financial services sector in the Virgin Islands, the Caribbean Financial Action Task Force (CFATF) has rated the territory as Compliant or Largely Compliant with all 40 Financial Action Task Force (FATF) Recommendations. Photo: GIS

In a press release, the Government of the Virgin Islands expressed its gratitude for the publication of the territory's 2nd Enhanced Follow-Up Report (FUR) by the CFATF. This report recognizes the significant progress made since the release of the 2024 Mutual Evaluation Report, which aimed to strengthen existing mechanisms and align the territory with the highest global standards. Photo: GIS

In a press release, the Government of the Virgin Islands expressed its gratitude for the publication of the territory's 2nd Enhanced Follow-Up Report (FUR) by the CFATF. This report recognises the significant progress made since the release of the 2024 Mutual Evaluation Report, which aimed to strengthen existing mechanisms and align the territory with the highest global standards.

 VI rated as Compliant or Largely Compliant with all 40 FATF Recommendations

The report confirms that the Virgin Islands is now rated Compliant or Largely Compliant with all 40 FATF Recommendations. This reflects the ongoing efforts the territory is making to enhance its anti-money laundering, counter-terrorist financing, and counter-proliferation financing (AML/CFT/CPF) framework.

Report highlights improvements in regulating business operations 

Additionally, the report highlights substantial improvements in regulating businesses operating in the Virgin Islands. These improvements include the monitoring and risk-based supervision of financial institutions and Designated Non-Financial Businesses and Professions (DNFBPs), as well as the collection and maintenance of accurate and up-to-date beneficial ownership information. These measures aim to prevent the misuse of legal entities registered in the Virgin Islands and grant enhanced powers to the Financial Investigation Agency (FIA) to ensure more effective enforcement of sanctions.

These findings underscore the high-level political commitment from the Government to implement the recommended actions outlined in the Mutual Evaluation Report. The government remains determined to reinforce the territory's standing as a secure and reputable international finance centre.

VI Committed to maintaining a transparent and trusted financial services environment

Hon Lorna G. Smith OBE, the Junior Minister for Financial Services and Economic Development, stated, "This achievement reflects the Virgin Islands’ unwavering commitment to maintaining a transparent and trusted financial services environment. We are proud to have reached this level of compliance. I want to pay tribute to the Attorney General's Chambers, the Financial Services Commission, the Financial Investigations Agency and all domestic competent and law enforcement agencies whose work has enabled us to reach this milestone. We are fully committed to working closely with the CFATF, FATF and all relevant stakeholders to ensure that the Virgin Islands’ AML/CFT/CPF regime remains effective and responsive to a range of evolving global threats."

The Attorney General, Honourable Dawn J. Smith added, "This is an important step in our journey towards achieving full compliance and alignment with the recommended actions outlined in our Mutual Evaluation Report. Our focus now is on ensuring that we maintain the current pace of progress, implementing measures which will strengthen our financial system and allow us to more effectively tackle financial crime. I want to thank the CFATF Secretariat and Group of Experts for their work in analysing the Virgins Islands’ progress and confirming that we have met the global standard."