The Virgin Islands was placed on the Financial Action Task Force’s (FATF) ‘grey list’ on Friday, June 13, 2025. Photo: Internet Source

Junior Minister for Financial Services, Trade and Economic Development Hon Lorna G. Smith, OBE (AL) said the resilience of the territory’s financial system will ensure its place as a leading international finance centre. Photo: Internet Source

Premier and Minister of Finance, Dr the Hon Natalio. D. Wheatley (R7) said there is confidence in the robustness of the Virgin Islands’ proactive steps being taken to improve effectiveness in combating financial crime. Photo: GIS/File

Attorney General Hon Dawn J. Smith reiterated the Virgin Islands’ commitment to achieving full compliance with global AML standards. Photo: GIS/File

The FATF is an international body that sets global standards for combating money laundering and terrorist financing. It monitors countries' progress in implementing these standards, identifies evolving methods of money laundering and terrorist financing, and works to promote the adoption and implementation of effective countermeasures. 

In May 2025, it was revealed that the VI may be added to the grey list. The VI was officially added to the grey list released on June 13, 2025, due to concerns about its AML framework, particularly regarding the identification of corporate beneficial owners. 

In a press release today, June 13, 2025, the Ministry of Finance said the measures to be implemented “span risk-based supervisory effectiveness and reporting, systematically pursuing ML investigations and prosecutions, increasing the seizure and confiscation of criminal proceeds, the sharing of relevant information with competent authorities, and operationalising the new asset management framework”.

FATF recognises significant progress made

The Ministry also stated that the government welcomes the FATF’s recognition of the significant progress made in implementing the recommended actions from the Mutual Evaluation Report, as well as the high-level political commitment the Government has made to ensure alignment with the FATF's global standards.

Work is being done to progress target areas, and it is expected to be completed in two years, thereby reinforcing the Territory’s standing as a secure, reputable international finance centre.

Junior Minister for Financial Services, Trade and Economic Development Hon Lorna G. Smith, OBE (AL) said, “As we work through the remaining items over the next two years, the resilience of our financial system will ensure the Virgin Islands remains a leading international finance centre.”

Notable progress made

Of priority will be the publishing of an updated National Strategic Action Plan that details completed actions and remaining milestones. This publication will provide stakeholders with full transparency on the Virgin Islands’ progress.

According to the Ministry of Finance, notable progress over the last year alone has included amending or enhancing over 20 pieces of legislation, namely the Anti-Money Laundering and Terrorist Financing Code of Practice and the Proliferation Financing (Prohibition) Act.

The Territory has also strengthened its beneficial ownership regime by implementing new regulations for improved global information sharing and migrating data to the secure VIRRGIN platform.

Comprehensive risk assessments, including an updated Terrorist Financing Risk Assessment, an NPO Risk Assessment and a specific legal persons and legal arrangements risk assessment, have been conducted to identify risks, vulnerabilities and emerging threats.

The VI has also issued enhanced technical guidance on crucial areas, including ongoing monitoring, introduced business, beneficial ownership, Suspicious Activity Reporting (SAR), and the Virtual Asset Service Provider (VASP) travel rule.

In addition, the establishment of a new Sanctions Unit in the Attorney General's office has improved the VI’s capacity to implement targeted financial sanctions and provide stakeholders with essential guidance on compliance.

Confident in VI’s robust framework- Premier Wheatley 

Premier and Minister of Finance, Dr the Hon Natalio. D. Wheatley (R7) stated, “We are confident in the robustness of our framework and the proactive steps we are taking to improve effectiveness in combatting financial crime. By continuously engaging with industry partners, modernising our laws, and bolstering law enforcement, we are well-positioned to address emerging threats and uphold our reputation as a trusted international finance centre.”

Meanwhile, Attorney General Honourable Dawn J. Smith reiterated the VI’s commitment to achieving full compliance with global AML standards. 

“This includes building institutional capacity and ensuring that our response is risk-based and effective. We will continue to work hand-in-glove with our domestic and international partners to uphold the highest standards and protect the integrity of our financial system,” she said.