1. Does the British Virgin Islands have a sanctions regime in place? 

Yes. As a British overseas territory, the British Virgin Islands implements the international sanctions obligations of the UK. Typically, this is effected by means of an Order in Council applying the relevant sanctions.

Sanctions which are in effect generally apply to:

• any person in the British Virgin Islands
• any person elsewhere who is a British citizen, a British overseas territories citizen, a British subject, a British National (Overseas) or a British protected person who is ordinarily resident in the British Virgin Islands
• any entity incorporated or constituted under the laws of the British Virgin Islands

2. Does the British Virgin Islands implement UN sanctions? 

Though the UK is an EU member state and a member of the UN, the British overseas territories (excluding Gibraltar) are not. The British Virgin Islands is nevertheless subject to the UK’s foreign policy which implements the EU’s Common Foreign and Security Policy and supports the UN’s sanctions regime. As such, UN and EU sanctions regimes have been substantially implemented and are observed in the British Virgin Islands.

3. Does the British Virgin Islands implement an autonomous sanctions regime? 

Yes. As a British overseas territory, the British Virgin Islands must implement all international sanctions that are extended to it through legislative action by the UK government.

As well as following the sanctions put in place by the UN and EU, the British Virgin Islands has an autonomous terrorist sanctions regime and has powers over the regulated sector under:

• the Proceeds of Criminal Conduct Act, 1997, as amended
• the Proceeds of Criminal Conduct (Designated Countries and Territories Order, 1999, as amended
• the Financial Services Commission Act, 2001, as amended
• the Financial Investigation Agency Act, 2003, as amended
• the Anti-Money Laundering Regulations, 2008, as amended
• the Anti-Money Laundering and Terrorist Financing Code of Practice, 2008, as amended
• related legislation such as the Proliferation Financing (Prohibition) Act, 2009

4. What is the nature of the sanctions regime in the British Virgin Islands? 

The most frequently applied measures are:

• arms embargoes and bans on associated technical assistance, training and financing
• bans on exporting equipment that might be used for internal repression
• export controls
• asset freezes and financial sanctions on designated individuals and corporate entities
• travel bans on named individuals
• bans on imports of raw materials or goods from the sanctions target

In general terms, it is a criminal offence to:

• deal with funds or economic resources belonging to, owned, held or controlled by a designated person, if it is known, or if you have reasonable cause to suspect, that you are dealing with such funds or economic resources
• make funds available to, or for the benefit of, a Designated person if it is known, or if you have reasonable cause to suspect, that you are making funds so available
• make economic funds available to, or for the benefit of, a Designated person if it is known, or if you have reasonable cause to suspect, that you are making economic resources so available and, in the case of making economic resources available to a designated person, that the Designated person would be likely to exchange the economic resources, or use them in exchange, for funds, goods or services

5. Does the British Virgin Islands maintain a list of sanctioned individuals and entities? 

No express obligation is imposed under the laws of the British Virgin Islands for any authority in the British Virgin Islands to maintain a list, but the Governor of the British Virgin Islands would be aware of the lists referred to in the next paragraph.

6. Are there any other lists related to sanctions? 

Yes. The lists generated by HM Treasury, the Home Office, and the Department for International Trade in the UK are relevant.

7. Does the British Virgin Islands have a licensing or authorization system in place? 

Yes. Exceptions to sanctions are permitted in certain specified circumstances, but only with the express authorization of the Governor of the British Virgin Islands.

8. What are the consequences for a breach of sanctions in the British Virgin Islands? 

It is a criminal offence to breach an obligation under a relevant sanctions measure without an appropriate license or authorization. The penalties for breaching sanctions can vary across the various regimes. However, in general terms, any individual found guilty of an offence shall be liable on conviction to a fine or imprisonment or both.

Entities acting in breach of financial sanctions can also commit a criminal offence and be liable to a fine. Where an offence has been committed by a body corporate, partnership or other form of unincorporated association and is proven to have been committed with the consent or connivance of, or neglect on the part of, an officer or partner, as applicable, of the entity, that individual is guilty of an offence (as well as the entity) and may be proceeded against accordingly.

The amount of the fine and the length of the term of imprisonment, if any, will depend on the nature of the offence and on which statute or code applies. [For example, any individual found guilty of an offence under the Anti-Money Laundering and Terrorist Financing Code of Practice, 2008, as amended, for dealings with a terrorist organization is liable on conviction to a fine of up to $70,000. If the dealings in question are caught by the Proliferation Financing (Prohibition) Act, 2009, the maximum penalty is $40,000, unless the British Virgin Islands Financial Investigation Agency presents a higher penalty to the High Court and the High Court confirms or varies the penalty presented. A person who fails to comply with a requirement imposed by a direction under the Act is liable, on summary conviction, to a fine of not more than $50,000 or, on conviction on indictment, to a fine not exceeding $70,000 or imprisonment for a term not exceeding three years, or both.]

A person who fails to comply with a requirement imposed by a direction under the Act is liable, on summary conviction, to a fine of not more than $50,000 or, on conviction on indictment, to a fine not exceeding $70,000 and/or imprisonment for up to three years.

9. Who are the relevant regulators in the British Virgin Islands and what are their contact details?
   

The British Virgin Islands Financial Services Commission (“FSC”) is an autonomous regulatory authority responsible for the regulation, supervision and inspection of all financial services in and from within the British Virgin Islands. Its responsibilities include policing the perimeter of regulated activity and reducing financial crime (including crossborder white-collar crime).

Pasea Estate, PO Box 418, Road Town, Tortola, VG 1110 British Virgin Islands

T: (+1) 284 494 1324
F: (+1) 284 494 5016
E: webmaster@bvifsc.vg
W: www.bvifsc.vg

The Joint Anti-Money Laundering and Terrorist Financing Advisory Committee, established under the Proceeds of Criminal Conduct Act, 1997, as amended, is responsible for advising the FSC on initiatives for the prevention and detection of money laundering and terrorist financing activities and may on its own motion provide such other advice as it considers essential to the British Virgin Islands’ efforts to combat such activities effectively. The Committee is comprised of not less than seven and not more than fourteen members who are appointed by the Minister, on the advice of the Attorney General and the Managing Director of the FSC and the latter acts as Chairman of the Committee.

The British Virgin Islands Financial Investigation Agency (“FIA”) is an autonomous law enforcement agency, generally responsible for the investigation of money laundering and terrorist financing activities and other serious financial crimes taking place in or from within the British Virgin Islands. Its responsibilities include processing requests for legal assistance from authorities in foreign jurisdictions as well as receiving and investigating all disclosure of information required to be made under relevant financial services legislation (including suspicious activity reports and disclosure from foreign authorities).

2nd Floor, Ritter House Building, P.O. Box 4090, Road Town, Tortola, VG1110, British Virgin Islands

T: (+1) 284 494 1335
F: (+1) 284 494 1435
E: info@fiabvi.vg
W: www.fiabvi.vg

The FIA is guided by a Board comprised of the Deputy Governor (as Chairman), the Attorney General (as Deputy Chairman), the Financial Secretary, the Commissioner of Police, the Commissioner of Customs, the Managing Director of the FSC and the Director of the FIA. The Board is essentially responsible for forming or setting the policy of the FIA. A Steering Committee (comprised of the Attorney General, the Managing Director of the FSC and the Director of the FIA) is responsible for dealing with and issuing directives in respect of all suspicious activity reports.

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