BVI Nears Exit From Fatf Grey List
The Virgin Islands has reported major progress in implementing its FATF Action Plan, with officials telling the FATF plenary in June 2026 that more than 92 percent of National Strategic Action Plan measures are complete or ahead of schedule. Government leaders say the reforms — including a new asset management framework, stronger supervision of trust and company service providers, and improved beneficial ownership transparency — are strengthening the Territory’s reputation and moving it closer to exiting increased monitoring.
The British Virgin Islands has told the Financial Action Task Force (FATF) it has made substantial headway on reforms designed to tackle money laundering, terrorist financing and proliferation financing, bringing the Territory closer to exiting the FATF’s increased monitoring or "grey list." The update was delivered at the FATF Plenary held June 17–19, 2026 by a delegation led by Attorney General Dawn J.
Smith alongside National AML/CFT Coordinator Lavonna Burrows and Glenford Malone of the Financial Services Commission. Government officials say more than 92 percent of the measures in the revised National Strategic Action Plan (NSAP) have been completed or are ahead of schedule. The NSAP translates the FATF Action Plan into a coordinated domestic programme and was approved by the National Anti‑Money Laundering Coordinating Council.
Key milestones highlighted by the Territory include the operational launch of a new asset management framework for seizure and recovery of criminal assets, strengthened risk‑based supervision of trust and company service providers, expanded fit‑and‑proper checks, increased on‑site inspections, and enhanced compliance reviews by the Financial Services Commission.
Authorities also report increased staffing and resources for the Royal Virgin Islands Police Force’s Financial Crime Unit and the Office of the Director of Public Prosecutions, better quality Suspicious Activity Reports from regulated businesses, and wider outreach to higher‑risk sectors including virtual asset service providers.
Officials pointed to improvements in beneficial ownership transparency through the VIRRGIN platform, which gives competent authorities and international partners access to more accurate ownership information. Reforms also provide greater public access to basic information on limited partnerships.
The FATF’s acknowledgement of progress — including operationalisation of the asset management framework — is welcome, but the Territory remains under increased monitoring until all commitments are fully implemented and independently verified. Placement on the grey list does not mean sanctions, but it can lead to greater scrutiny from correspondent banks and higher compliance costs for local businesses, a persistent concern for an economy in which international financial services are a major revenue source.
Attorney General Smith and Junior Minister for Financial Services Lorna G. Smith described the recognition as evidence that coordinated action across government, regulators, law enforcement and industry is working. Government officials say they will continue submitting progress reports to the FATF and the Caribbean FATF as they work to complete the remaining measures and protect the Territory’s reputation as a transparent, resilient international financial centre.
Primary source: Guavaberry