Virgin Islands Releases 2025 Risk Assessment on Terrorist Financing

The Government of the Virgin Islands has released its 2025 Terrorist Financing Risk Assessment, reinforcing its commitment to protecting the jurisdiction’s financial sector and aligning with global efforts to combat terrorist financing. The report reflects a proactive approach to identifying and addressing emerging threats, while maintaining the Territory’s standing as a responsible and compliant international financial center.

Building on its inaugural 2020 assessment, the new report was developed by a cross-agency working group under the oversight of the National Anti-Money Laundering Coordinating Council. It offers an in-depth evaluation of the Territory’s vulnerabilities to terrorist financing and identifies key areas for policy and regulatory reform.

While the assessment concludes that the Virgin Islands continues to pose a low risk for the collection and deployment of terrorist funds, it highlights a medium-high risk associated with the movement of funds through British Virgin Islands (BVI) entities—particularly those operating via virtual asset platforms and complex corporate structures. These areas, the report notes, are susceptible to misuse due to their cross-border nature and the rapid pace of technological innovation.

The report’s findings are accompanied by a series of targeted recommendations. These include enhanced training for agencies on the front lines, improved detection mechanisms for virtual asset-related threats, and increased data sharing among local and international enforcement and regulatory bodies.

Premier Natalio D. Wheatley, who also chairs the Anti-Money Laundering Coordinating Council, said the assessment reaffirms the Territory’s “commitment to proactive, data-driven decision-making in the fight against terrorist financing.”

“We take our responsibility to uphold international standards extremely seriously,” Wheatley said. “These findings will guide the next phase of our reforms, particularly in strengthening regulatory frameworks for virtual assets, improving interagency coordination, and reinforcing our sanctions enforcement efforts.”

The 2025 assessment integrates insights from recent national risk evaluations of legal persons, legal arrangements, and non-profit organisations, and incorporates guidance from the Virgin Islands’ 2024 Mutual Evaluation Report. It also draws upon international case studies and patterns of misuse involving BVI entities.