British Virgin Islands Now Compliant or Largely
The Government of the Virgin Islands has welcomed the Caribbean Financial Action Task Force’s (CFATF) 2nd Enhanced Follow‑Up Report, which confirms the Territory is now rated Compliant or Largely Compliant with all 40 Financial Action Task Force (FATF) Recommendations. The CFATF highlighted strengthened regulation and supervision, improved beneficial ownership information, and enhanced powers for the Financial Investigations Agency; the Government said it will continue implementing measures to maintain progress. New: local media reported the BVI was added to the FATF’s grey list in June, underscoring the urgency of recent reforms and the significance of this latest rating (Guavaberry).
The Government of the Virgin Islands yesterday welcomed the publication of the Territory’s 2nd Enhanced Follow‑Up Report (FUR) by the Caribbean Financial Action Task Force (CFATF). According to the CFATF statement, the FUR confirms that the Virgin Islands is now rated Compliant or Largely Compliant with all 40 Financial Action Task Force (FATF) Recommendations — a significant milestone following the Territory’s 2024 Mutual Evaluation Report (MER).
The CFATF report recognises that the Virgin Islands has made substantial progress since the MER, reflecting work carried out across government and regulatory bodies to strengthen the Territory’s anti‑money laundering, counter‑terrorist financing and counter‑proliferation financing (AML/CFT/CPF) framework.
The CFATF specifically points to stronger regulation and supervision of financial institutions and Designated Non‑Financial Businesses and Professions (DNFBPs), and the implementation of risk‑based supervision as important advances. The FUR also highlights improvements in the collection and maintenance of adequate, accurate and up‑to‑date beneficial ownership information — a key measure intended to reduce the misuse of companies and other legal entities registered in the Territory.
In addition, the CFATF notes that the Financial Investigations Agency (FIA) has been granted enhanced powers to increase enforcement effectiveness, including better application of sanctions. The Government’s own press release echoed the CFATF findings and emphasised that the FUR recognises the Territory’s progress since the 2024 MER in aligning with the highest global standards.
Junior Minister for Financial Services and Economic Development Hon. Smith OBE said the rating is "testament to the Territory’s unwavering commitment to maintaining a transparent and trusted financial services environment," and thanked agencies across the public sector for their roles in achieving the milestone.
Smith described the CFATF report as "an important step in our journey towards achieving full compliance and alignment with the recommended actions outlined in our Mutual Evaluation Report," and called on stakeholders to maintain the current pace of reforms. In the Government statement she also thanked the CFATF Secretariat and Group of Experts for their work in analysing the Virgin Islands’ progress (Guavaberry).
Local reporting by Guavaberry noted that the BVI was added to the FATF’s grey list in June of this year, providing context for the urgency behind recent reforms and underscoring the importance of the Territory’s move to Compliant or Largely Compliant ratings. The Government said the findings should help reinforce international confidence in the Territory, protecting jobs and revenue tied to financial services and reducing the risk of reputational harm or sanctions.
The full CFATF 2nd Enhanced Follow‑Up Report is available through the CFATF, and the Government has published its own media release summarising the findings. The Government reiterated its commitment to continued collaboration with the CFATF, the Financial Action Task Force (FATF) and international partners, and said it will provide further updates as necessary.
For international media enquiries the Government lists BVIGovernment@dgagroup.com and contact numbers in its release.
Primary source: VINO