Structure and leadership of the FIA

The FIA is introduced as a corporate body with broad powers to carry out functions aimed at uncovering and preventing the perpetuation of financial offences such as money laundering, drug trafficking-related offences, and terrorism financing. The Agency operates under the guidance of a Board, whose membership includes key figures such as the Deputy Governor or a retired Judge as Chairman, the Attorney General as Deputy Chairman, the Financial Secretary, the Commissioner of Police, the Commissioner of Customs, the Managing Director of the Financial Services Commission, and the Director of the Agency (who serves in this position ex officio). Additionally, the Steering Committee, comprising the Attorney General, the Managing Director of the Commission, and the Director of the FIA, is tasked with overseeing and steering specific financial investigations.

Core functions and powers of the FIA

The Act defines the primary functions of the FIA as receiving, analysing, and disseminating information related to potential or actual financial offences. The Agency is empowered to obtain information through disclosures required under financial services-related legislation and other enactments. Notably, it can issue written directions to freeze bank accounts for up to five days, demand the production of information critical to investigations, and retain information records for at least five years. Collaborating both domestically and internationally, the FIA is authorised to share relevant information with law enforcement bodies and foreign financial investigation agencies. It can also enter into formal agreements with external bodies, provided such arrangements are deemed necessary by the Governor.

Policy framework and compliance enforcement

The Board of the Agency has a pivotal role in crafting the FIA’s policy framework. It approves the annual budget, exercises supervisory authority over the Agency, and addresses high-level policy issues. Simultaneously, the Steering Committee serves as the operational backbone, conducting or directing investigations into financial offences, including those arising from international legal assistance requests or as stipulated by financial services laws. Failure to comply with the Agency’s directions, such as the provision of requested information, constitutes an offence punishable by fines, imprisonment, or both, underlining the Act’s emphasis on accountability and compliance.

Confidentiality and legal protections

The Act establishes a robust infrastructure to protect the confidentiality of sensitive information handled by the FIA. It imposes strict obligations on all connected personnel to maintain secrecy, with violations subject to criminal penalties. Additionally, individuals and institutions providing information to the Agency in good faith are shielded from criminal, civil, or professional liability. Officers and personnel of the FIA are granted immunity from lawsuits for actions performed in good faith pursuant to the Act, ensuring a safe operational environment for its members.

Governance and operational procedures

The governance and operation of the FIA are comprehensively detailed in the accompanying schedules. Schedule 1 addresses procedural matters concerning the Board and the Agency, including rules on meetings, quorum, decision-making processes, and the authentication of official documents. The Director, appointed by the Board for a renewable term not exceeding five years, is responsible for the Agency’s day-to-day administration and reports to the Board on the Agency’s work and developments affecting public policy. Clear provisions exist for performance evaluations of seconded officers and the processes for appointment, secondment, and remuneration of staff, all aimed at fostering a competent and efficient workforce.

Financial autonomy and accountability

Additional provisions within the Act reinforce the FIA’s operational autonomy and financial stability. The Agency is funded through parliamentary appropriations and asset-sharing agreements, with funds deposited in a specialised “Financial Investigation Agency Asset Fund”. Surplus funds are further directed into a reserve account, enhancing financial resilience. The FIA’s accounts undergo regular audits by the Auditor General or an approved external auditor, and detailed annual reports are presented to the Board and laid before the Cabinet and the House of Assembly for accountability.

Guidelines for financial entities

The Act includes provisions for the development and issuance of guidelines by the FIA for financial entities, addressing the identification of suspicious transactions and the procedures for reporting them. These guidelines undergo periodic review and consultation to ensure they remain effective and reflect current trends in financial crimes. They are made freely accessible to relevant financial institutions to foster compliance and proactive measures industry-wide.

Commitment to combating financial crimes

The Financial Investigation Agency Act, with its amendments and comprehensive regulatory framework, serves as a bedrock for the Virgin Islands’ fight against financial crimes. By implementing stringent investigatory powers, fostering collaboration, and reinforcing safeguards for confidentiality and immunity, the Act highlights the Government’s commitment to upholding the integrity of the financial services sector and ensuring robust mechanisms to detect, prevent, and penalise criminal financial activities.

Amendments and expanded provisions

Amendments introduced in 2021, 2023, and 2024 have significantly expanded the scope and powers of the FIA, enhancing its ability to fulfil its mandate in an evolving global financial landscape.

• Financial Investigation Agency (Amendment) Act, 2021: This amendment introduced essential updates to the definitions, functions, and powers of the FIA. Key new definitions included terminology such as “DNFBPs” (Designated Non-Financial Businesses and Professions), “NPOs” (Non-Profit Organisations), “proliferation financing”, and “terrorist financing”. These additions aligned the Act with international standards and addressed emerging risks related to money laundering and terrorism financing. The amendment also introduced mandatory registration and compliance monitoring for DNFBPs and NPOs operating in high-risk areas, ensuring these entities adhere to stringent anti-financial crime regulations. Furthermore, the accountability of directors and controlling stakeholders within these organisations was solidified, with the FIA empowered to evaluate their fitness to hold such roles. Notable structural changes included the abolition of the Steering Committee and the empowerment of the FIA to take supervisory responsibility for DNFBPs, NPOs, and other relevant entities. Additionally, provisions were introduced requiring these entities to report organisational changes and comply with operational standards enforced by the FIA.
• Financial Investigation Agency (Amendment) Act, 2023: The 2023 amendment continued to enhance the FIA’s international collaboration capabilities, particularly with foreign financial investigation agencies. The definition of “foreign financial investigation agency” was expanded to include entities responsible for DNFBP and NPO oversight in other jurisdictions. The amendments also established formal mechanisms for the FIA to provide and request feedback when sharing financial intelligence. This transparency and effectiveness in cross-border cooperation reinforced international efforts against financial crimes. Furthermore, the ability of the FIA to share information proactively and respond to written requests was clarified, confirming the Agency’s growing emphasis on facilitating global intelligence sharing.
• Financial Investigation Agency (Amendment) Act, 2024: This amendment marked the most significant expansion of the FIA’s powers to date. It introduced supervisory oversight for NPOs at risk of misuse for terrorism financing, requiring thorough evaluations and risk assessments of these organisations. DNFBPs were explicitly prohibited from operating in the Territory without prior registration with the Agency. The FIA assumed greater enforcement authority, including the ability to suspend or revoke licences and impose substantial administrative penalties for violations. Central to the 2024 changes was the introduction of a risk-based approach to supervision, enabling the FIA to allocate resources efficiently based on the assessed risk profile of DNFBPs and NPOs. New measures permitted the FIA to inspect premises, review internal procedures, and assess compliance frameworks. The FIA also gained the ability to issue public statements highlighting enforcement actions, as well as directing domestic and international institutions to take preventative measures. Further collaboration opportunities were facilitated through enhanced disclosure powers, allowing the FIA to provide support for investigations and intelligence sharing with significant safeguards to ensure confidentiality and accuracy. The 2024 amendment added new reporting requirements for DNFBPs and NPOs, including regular submission of data related to financial crime risk assessments and governance changes. Non-compliance with these directives attracted substantial fines and potential deregistration. Additionally, the FIA introduced detailed guidance and maintained greater transparency through published inspection reports and statutory returns.
• Implementation of the 2024 amendments: On 2 January 2025, the latest amendments officially came into effect following a statutory notice by the Minister of Finance. With these revisions, the FIA cemented its role as an essential institution in safeguarding the financial stability of the BVI. The Financial Investigation Agency Act, enhanced by its amendments, establishes a strong foundation for tackling financial offences and safeguarding the BVI’s financial system. By adopting global best practices and collaborating with international counterparts, the FIA ensures that the Territory remains resilient against emerging threats. Through robust supervision of DNFBPs and NPOs, the implementation of risk-based strategies, and the proactive dissemination of financial intelligence, the FIA exemplifies the commitment to fostering a secure and compliant financial environment.

Further reading

• Virgin Islands Financial Investigation Agency Act (consolidated as at 1 January 2020)
• 2021 Amendments
• 2023 Amendments
• 2024 Amendments
• Notice of the 2024 Amendments