BVI makes another bad list, promises action plan
The British Virgin Islands (BVI) said it is already committed to publishing an anti-money laundering action plan after another worrying report emerged; this time listing the territory among the top 10 countries to which identified United Kingdom criminal assets have been laundered.
The BVI is actually the only Caribbean country on the list published recently in the UK National Risk Assessment of Money Laundering and Terrorist Financing.
The territory is ranked #8, and the report stated that rankings are based on the estimated value of assets laundered to the different countries.
The United Arab Emirates tops the list with a #1 ranking.
The other countries listed in the top-10 are Pakistan, Switzerland, Spain, Nigeria, Isle of Man, Cyprus, Hong Kong, and Liechtenstein.
Earlier this year, a similar publication by the United States also listed the BVI as posing significant risks in relation to money laundering mainly due to exploitation of the territory’s financial services.
Meanwhile, the UK authorities, in the latest report, said the United Kingdom is exposed to – among other things – the transfer of UK criminal proceeds to other countries, either to frustrate efforts to confiscate assets as part of ‘lifestyle’ spending, or to pay for goods and services overseas in support of further criminality (for example, the purchase of drugs overseas for supply to the UK).
The UK report further stated that, in the last 5 years, criminal assets with an estimated value of over £600 million have been identified overseas. The true figure, it noted, will be significantly higher, as the aforementioned figure only includes identified assets linked to offenders who have been convicted and had a confiscation order made against them.
BVI responds
Responding to the report out of the UK, BVI Finance noted that the report highlights the vulnerability of the UK financial system to money-laundering because of the ease with which ownership can be obscured using offshore holding companies, especially in the property market.
It said the BVI government already has committed to publishing an Anti-Money Laundering Action Plan. That action plan will set out how the government will work with supervisors and the private sector to address the risks identified in this National Risk Assessment.
Meanwhile, in an interview published today by World Finance, Executive Director of BVI Finance Julien Johnson was asked how the territory ensures that business is above board, considering that people usually think of money laundering when they think of offshore jurisdictions.
In reply, the BVI Finance representative said the global fight against money laundering is an evolving process.
“The BVI has long been a part of this process; in fact, the BVI was one of the very first jurisdictions to institute anti-money-laundering laws, going as far back as 1999.”
“We have a very robust anti-money laundering framework; we take very seriously our role in combatting money laundering globally. And as I said before, we meet and in most cases exceed international standards,” added the BVI Finance executive director.
