In an impactful statement delivered on March 5th, 2024, by the Honourable Lorna Smith, OBE, Deputy Premier and Minister for Financial Services, Labour and Trade, the Virgin Islands government has firmly committed to enhancing its financial regulatory framework. This declaration was made during the Ninth Sitting of the First Session of the Fifth House of Assembly of the Virgin Islands and centers around the recent Mutual Evaluation Report (MER) conducted by the Caribbean Financial Action Task Force (CFATF).
The MER, a pivotal document assessing the robustness of the Virgin Islands' efforts against money laundering and terrorist financing, was published last week, drawing immediate and serious attention from the government. The Deputy Premier emphasized the government's readiness to adopt and execute the recommendations provided in the report, highlighting the initiation of a National Action Plan designed to address these critical points.
The Virgin Islands, recognized globally as a major financial hub, relies heavily on the financial services sector, which is a significant contributor to its government revenues and economic sustainability. Recognizing the importance of maintaining a clean, transparent, and highly regulated financial environment, the government has pledged an unwavering commitment to bolster its anti-money laundering (AML) and counter-financing of terrorism (CFT) framework.
Since the introduction of the Anti-Money Laundering Code of Practice in 1999, the Virgin Islands has progressively strengthened its legislative and regulatory provisions. However, the latest CFATF evaluation indicates the need for an even more vigorous effort. The Deputy Premier underlined the collective responsibility of both public and private sectors in combatting illicit financial flows and ensuring that the Virgin Islands remains an uninviting terrain for financial criminals.
Highlighting the importance of international cooperation and reputation, Smith recounted her participation in the CFATF Plenary in November 2023, where the Virgin Islands' commitment to addressing the identified issues was clearly demonstrated. The message was unequivocal: the Virgin Islands is determined to attract only reputable business and is set on a path to further mitigate risks and strengthen the prosecution of financial crimes.
This recent development not only reflects the Virgin Islands' dedication to global financial security standards but also underscores the collaborative approach between government bodies, regulatory authorities, law enforcement, and the private sector in safeguarding the integrity of its financial system.
As the Virgin Islands embarks on this crucial journey towards enhanced regulatory and enforcement mechanisms, the Deputy Premier’s statement reassures both local and international communities of the territory’s resolve to lead by example in financial services regulation and crime prevention. The progress of these initiatives is awaited with keen interest by stakeholders worldwide, as the Virgin Islands continues to uphold its reputation as a secure and reputable global financial centre.