Press Release 10 of 2025 - Risk Assessment of Legal Persons and Legal Arrangements Published

RISK ASSESSMENT OF LEGAL PERSONS AND LEGAL ARRANGEMENTS PUBLISHED

Tortola, British Virgin Islands – In a press release dated 16 April 2025, the Government of the Virgin Islands announced the publication of the National Money Laundering, Terrorist Financing and Proliferation Financing Risk Assessment of Legal Persons and Legal Arrangements (the LPLA Risk Assessment). 

The LPLA Risk Assessment takes a critical look at the risks posed by legal persons and legal arrangements in the VI, and breaks down these risks with the aim of assisting persons’ understanding of their risk exposure as well as helping authorities in the Virgin Islands ensure appropriate measures are adopted to mitigate against money laundering (ML), terrorist financing (TF), proliferation financing (PF) and sanctions evasion risks connected to legal persons and legal arrangements.

The LPLA was carried out by a working group composed of representatives from the Royal Virgin Islands Police Force – Financial Crimes Unit; BVI Financial Services Commission (the Commission); Ministry of Financial Services, Economic Development and Digital Transformation; Attorney General Chambers – Sanctions Unit and International Cooperation Unit; Governor’s Office; Financial Investigation Agency – Analysis and Investigation, and Supervision and Enforcement Units; and the Non-Profit Organisations Board.  The working group was guided by a written methodology which followed the Financial Action Task Force’s (FATF) Guidance on National Money Laundering and Terrorist Financing Risks Assessments, and was led by an international compliance consulting firm.  In carrying out its mandate, the working group also tested the perspectives of practitioners in the VI on risks posed by legal persons and legal arrangements through round table discussion and a survey.

The Managing Director and CEO of the Commission – Mr Kenneth B Baker, lauded the efforts of the working group and emphasised the importance of financial institutions, Designated Non-Financial Businesses and Professions (DNFBPs), Competent Authorities, Law Enforcement Agencies and the public becoming familiar with the LPLA Risk Assessment and its findings.  Mr Baker further stated that familiarity with the LPLA Risk Assessment must guide relevant institutional and customer risk assessments for those entities under the Commission’s supervisory remit, and must form part of their controls to mitigate the risk posed by ML, TF and PF.  

A copy of the National Money Laundering, Terrorist Financing and Proliferation Financing Risk Assessment of Legal Persons and Legal Arrangements can be accessed here.

The BVI Financial Services Commission is the autonomous regulatory agency responsible for regulating and supervising financial services conducted in and from within the Territory. 

Any questions concerning this Press Release may be directed to:

EXTERNAL RELATIONS UNIT
BVI Financial Services Commission
18 Pasea Estate Road, Tortola VG1110
British Virgin Islands
Tel: (284) 494-4190
Fax: (284) 494-5016 
Email: [email protected]