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.

The governments of the British Virgin Islands (BVI) and the United States Virgin Islands (USVI) have strengthened their commitment to regional maritime cooperation following a diplomatic meeting held on April 15 in Charlotte Amalie, St. Thomas. The talks focused on refining the charter vessel fee structure and aligning operational frameworks to support growth in the maritime tourism sector.

Premier of the Virgin Islands, Dr. Natalio D. Wheatley, and Governor of the USVI, Albert Bryan Jr., reaffirmed a shared vision of economic partnership and regional integration. The discussions followed initial dialogue held on March 7 in Tortola and reflect ongoing efforts to harmonize maritime policy and licensing structures between the two neighboring jurisdictions.

A key focus of the meeting was the Commercial Recreational Vessels Licensing Act of 1992, which the Government of the Virgin Islands has moved to amend. The proposed amendment bill received its first reading in the House of Assembly on January 7, 2025, and is currently listed for second reading in the present session. If passed, the changes are expected to take effect by June 1, 2025.

Under the proposed revised fee structure, term charters originating outside of the BVI would be required to pay $7,500 annually for up to seven entries, with an additional $2,100 for each extra entry. A flat rate of $24,000 would apply to vessels seeking unlimited entries. The annual licensing fee for day-trip vessels has been revised to $8,500, while the water taxi license fee remains at $2,500 per year.

The amendments are designed to modernize the BVI’s maritime regulatory system and bring it in line with regional expectations. In addition to fee revisions, the proposed changes include moving from a fixed expiration date system to one based on the anniversary of license issuance, a shift intended to reduce administrative burdens on vessel operators.

Both governments also agreed to the formation of a joint marine task force, which will focus on coordinating regional maritime policy, streamlining regulatory requirements, implementing technology to improve port operations, and enhancing coastal protection efforts.

Premier Wheatley noted that approximately 95 percent of the terms have already been agreed upon between the parties. He confirmed that the BVI government remains open to further collaboration and adjustments in the spirit of maintaining a strong bilateral relationship with the USVI.

This latest round of talks underscores the governments’ continued efforts to create a stable and mutually beneficial regulatory environment for the maritime tourism industry. The initiative is expected to support charter operators and promote long-term economic growth across the Virgin Islands.

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Premier Dr. Natalio D. Wheatley has issued a forceful rebuttal to the findings of a UK-led law enforcement review, rejecting several of its key recommendations and defending the territory’s right to self-governance.

The report, Law Enforcement Review Part Two, was published by His Majesty’s Inspectorate of Constabulary and Fire & Rescue Services and forms part of an ongoing UK oversight effort following the 2022 Commission of Inquiry. While the Premier acknowledged the government’s cooperation throughout the inspection process, he condemned what he called a “mischaracterisation” of the Virgin Islands and its people.

“The safety of our citizens is paramount,” Wheatley stated. “Equally, the legal and regulatory stability of our jurisdiction is at the heart of its appeal as a leading international finance centre.”

Though some of the report’s recommendations will be reviewed and potentially implemented, Wheatley said others will be firmly rejected. Chief among his concerns was the suggestion that more power should be transferred to the UK Government—a move he described as a threat to the territory’s democratic and constitutional rights.

“To accept this premise would also represent submitting to colonial overreach, and a retrograde step for democracy in the British Virgin Islands,” he said.

Wheatley also criticized the report for overlooking significant reforms already underway since the fieldwork was conducted in 2023. These include enhanced measures to combat financial crime and broader efforts to improve governance, many of them driven by the territory’s response to the Commission of Inquiry and the Caribbean Financial Action Task Force’s evaluation.

The Premier underscored that the Governor, who is appointed by the UK and holds constitutional responsibility for security, is not beyond scrutiny and is also the subject of criticism in the report.

“We wish to work constructively alongside the UK Government and Governor in a modern partnership,” Wheatley added. “But we cannot compromise on our democratic and constitutional rights.”

He confirmed that the House of Assembly will systematically evaluate each recommendation in the report, determining which are in the best interest of the territory and which will be formally rejected. A formal response will be delivered to both the Governor and the UK Government.

The UK Foreign, Commonwealth & Development Office had not responded publicly by press time.