Virgin Islands Publishes National Risk Assessment on Financial Crime Risks

The Government of the Virgin Islands has released its first National Money Laundering, Terrorist Financing, and Proliferation Financing Risk Assessment of Legal Persons and Legal Arrangements, as required under the revised Financial Action Task Force (FATF) Recommendations 24 and 25.

The report provides an evaluation of the potential misuse of Virgin Islands legal entities—such as BVI Business Companies (BVIBCs), trusts, and limited partnerships—for money laundering (ML), terrorist financing (TF), and proliferation financing (PF). It outlines existing threats and vulnerabilities and identifies measures aimed at reducing exposure to financial crime.

The assessment found that while legal persons in the Territory are generally subject to regulatory oversight, the global nature of financial services and the complexity of cross-border structures present inherent risks. The residual risk of misuse for money laundering was assessed as “Medium High” across most categories of legal persons and arrangements.

Premier of the Virgin Islands and Chair of the National Anti-Money Laundering Coordinating Council (NAMLCC), Honourable Dr. Natalio D. Wheatley, issued a statement on the report’s release:

“This risk assessment marks a significant milestone in the Virgin Islands’ journey to strengthen our anti-money laundering and counter-financing of terrorism regime. It reflects our resolve to understand our exposure to financial crime and act decisively to mitigate it. As a premier international financial centre, we are responsible for leading with integrity, upholding global standards, and ensuring that the Virgin Islands is not a haven for criminal abuse of corporate structures.”

The assessment was led by NAMLCC and developed with input from several government agencies, including the Financial Investigation Agency, Financial Services Commission, Royal Virgin Islands Police Force, Attorney General’s Chambers, and the Ministry of Financial Services, Economic Development and Digital Transformation. Industry representatives—including trust and corporate service providers, legal professionals, and accountants—also contributed through consultation.

The findings are expected to inform upcoming legislative reforms, compliance measures, and cross-border cooperation initiatives. The full report is available through the Government of the Virgin Islands.