Update on Anti-Money Laundering & International Initiatives

Update on Anti-Money Laundering & International Initiatives

In November 2008, the Caribbean Financial Action Task Force, (“CFATF”), published their Mutual Evaluation Report on the BVI.  The report was very favourable and placed the BVI in the top tier of jurisdictions.

In response to the report, the BVI’s compliance regime was further enhanced in 2009, by amendments to the Anti-Money Laundering and Terrorist Financing Code of Practice, 2008.  This included the introduction of a list of recognised jurisdictions that are equivalent to the BVI in terms of anti-money laundering.

Another result was the introduction of a Financing & Money Services Bill, 2009, which has been passed into law, but is yet to be enacted.  The financing aspect is intended to regulate those persons resident in the BVI, and financiers not carrying on business in the BVI should not be caught.

The definition of money services is very wide and includes money transmission services, currency exchange services and cheque cashing services.  Businesses caught by the new licensing requirement will need to apply to the FSC for a licence and comply with certain requirements.

Within the last few months, the BVI has finalised Tax Information Exchange Agreements, (“TIEAs”), with France and the seven Nordic countries.  This brings the total number of TIEAs entered into by the BVI to eleven.