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Legal Updates

Developments in law or practice in our jurisdictions

Getting financial services licensees in shape for the Caribbean FATF inspection

Publication Date:
18 May 2017

The BVI is expected to undergo its fourth round of mutual evaluation by the Caribbean Financial Action Task Force (CFATF) in 2018 based on the Financial Action Task Force’s (FATF) international standards on combating money laundering and the financing of terrorism and proliferation.

Each member country of the FATF and its associated regional bodies is now required to ensure that they can identify and assess the risks associated with money laundering and terrorist financing and take action, including designation of an authority or mechanisms to coordinate the assessment of the identified risks, and apply resources aimed at effective risk mitigation.

In order to effectively manage this process, the BVI Cabinet established the National Risk Assessment Council to serve as the policy-making body responsible for leading the way on significant policy issues in relation to the conduct of the National Risk Assessment (NRA). The National Risk Assessment Steering Group has also been established to act as the central coordinating body for the NRA with full responsibility for the preparation of the NRA framework and the conduct and review of the NRA. In addition, the Public Education Committee (PEC) has been established and charged with the task of educating the public on Anti-money Laundering and Countering the Financing of Terrorism (AML/CFT) matters. In accordance with this mandate, the PEC has created a brochure which provides essential information on the NRA exercise, background on the origins and the framework of the FATF and details of the BVI’s legislative framework as regards AML/CFT.

The BVI Financial Services Commission (FSC) has already commenced a preliminary exercise to ensure that all relevant persons conducting relevant business have complied with the AML/CFT requirements. Specifically, the FSC is testing relevant persons on four of the FATF’s Recommendations.

If you need assistance reviewing your AML/CFT documentation to ensure compliance under applicable law and regulations feel free to reach out to us.

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