Key changes in the Regulations:

Appointment of Money Laundering Reporting Officer (MLRO)

• Every relevant entity is now required to appoint an MLRO with a minimum of three years' experience and qualifications (at least a diploma). This officer must ensure compliance with AML, terrorist financing, and proliferation financing regulations.
• Approval for the appointment must be obtained from the Financial Services Commission or the Financial Investigation Agency, depending on the entity's regulatory body.
• The MLRO must have access to all relevant internal information to perform their duties and must notify the regulatory body within 14 days if they leave the role. A new MLRO must be appointed within 21 days.

Enhanced responsibilities and controls

• The amended Code of Practice outlines detailed internal control measures that entities must implement, including:
• Compliance management and designation of senior management to oversee AML functions
• Ongoing employee training on AML/CTF matters
• Regular independent audits to ensure compliance
• Entities with three or fewer employees can now apply for a senior officer or director to serve as the MLRO, provided they meet the qualification standards

Streamlined processes and clarity

• The amendments provide clear guidance on how regulatory authorities will assess MLRO qualifications and outline procedures for replacing MLROs. Additionally, minor updates were made to re-number sections for clarity and consistency in both the regulations and the code of practice.

These updates highlight the Virgin Islands' commitment to maintaining a robust and modern framework to combat financial crimes, ensuring that regulated entities are well-equipped to meet global AML and terrorist financing standards.

These amendments will come into effect on a date specified by the Minister through an official notice.

The Anti-Money Laundering and Terrorist Financing (Amendment) Code of Practice, 2024 can be found here.

The Anti-Money Laundering (Amendment) Regulations, 2024 can be found here.