At a recent Breakfast Forum, the Financial Investigation Agency (FIA) showcased its strengthened ability to detect and prevent financial crime both locally and internationally. The event featured Mr. Errol George, Director of the FIA, who shared valuable insights into the agency's initiatives to address recommendations from the Caribbean Financial Action Task Force (CFATF) Mutual Evaluation Report.
Overview of the Financial Investigation Agency’s Current Initiatives
During the forum, Mr. George, who has led the FIA since 2009, emphasized the importance of a robust anti-money laundering (AML) and counter-terrorist financing (CFT) framework to protect the integrity of the BVI's financial services sector. Mr. George discussed the FIA's two operational units:
• Supervision and Enforcement Unit: This unit oversees designated non-financial businesses and professions (DNFBPs), ensuring compliance with AML/CFT regulations. Mr. George outlined recent efforts to strengthen the supervisory framework, including enhanced risk assessments and upcoming on-site inspections for high-risk entities.
• Analysis and Investigations Unit: Focused on analyzing suspicious activity reports (SARs) and sharing financial intelligence with local and international partners, this unit has been pivotal in identifying emerging trends in financial crime. Mr. George highlighted ongoing projects, such as strategic analysis reports on human smuggling and the development of new typology reports related to money laundering and terrorist financing.
Addressing the CFATF Mutual Evaluation Report Recommendations
Mr. George provided an update on the steps being taken to address the recommendations from the CFATF Mutual Evaluation Report. Key areas of focus include:
• Improved Reporting and Analysis: The FIA is actively working on increasing the number of strategic analysis projects and typology reports to better understand and mitigate risks. This includes enhanced reporting guidelines for SARs and closer monitoring of virtual asset transactions, which have seen a significant rise in suspicious activity.
• Strengthening Domestic and International Partnerships: By fostering closer collaboration with local law enforcement agencies and international bodies, the FIA aims to improve the overall effectiveness of its AML/CFT framework. Mr. George highlighted the importance of these partnerships in addressing cross-border financial crimes and ensuring a unified approach to regulation and enforcement.
• Implementation of Advanced Technologies: To manage the increasing volume of SARs, particularly those related to virtual assets, the FIA is exploring the use of artificial intelligence and other advanced technologies. These tools are expected to enhance the efficiency and accuracy of SAR analysis, allowing the agency to better allocate resources and respond to emerging threats.
• Increased Focus on Virtual Assets: Mr. George specifically addressed the growing prominence of virtual assets in the financial services landscape. He noted that the FIA has seen a significant rise in suspicious activity reports related to virtual assets, with many involving high-risk activities such as child exploitation, illegal gambling, and the use of the dark web. The FIA is intensifying its monitoring and analysis of virtual asset-related transactions and has introduced specialized analysts to tackle the increasing number of reports. Mr. George emphasized that virtual assets remain a high-priority area for the FIA, and the agency is working to enhance its regulatory oversight and address potential vulnerabilities in this sector.
Transition from Investigation Agency to Supervisory Authority
Mr. George discussed the FIA’s transition from being solely an investigative body to also serving as a supervisory authority. Initially established to focus on financial investigations, the FIA expanded its mandate to include the supervision of Designated Non-Financial Businesses and Professions (DNFBPs) in line with international AML/CFT standards.
The FIA now oversees a wide range of entities, ensuring their compliance with AML/CFT obligations. These entities include:
• Non-Profit Organizations
• Law Firms
• Real Estate Agents
• Car Dealerships
• Yacht Brokers
• Jewelers
“These entities are often at risk of being exploited for money laundering or terrorist financing purposes, given the nature of their services,” said George.
This supervisory role is critical to ensuring that these businesses follow strict protocols to mitigate risks related to money laundering and terrorist financing. Mr. George emphasized that this transition has enhanced the BVI’s regulatory framework and strengthened its ability to detect and prevent illicit financial activities. The agency’s ongoing work includes conducting risk assessments and enforcing compliance through on-site inspections, particularly focusing on higher-risk DNFBPs. The FIA’s approach includes, not only enforcement, but also education, with outreach programs aimed at raising awareness about suspicious transaction reporting and other AML/CFT responsibilities.
Cooperation from Supervised Entities
Mr. George highlighted the positive cooperation from the entities, noting that they have been increasingly responsive to the FIA’s requests, including completing updated risk assessment questionnaires and preparing for on-site inspections.
This cooperation reflects the growing recognition within the sector of the importance of adhering to AML/CFT requirements and the broader effort to maintain the BVI’s reputation as a compliant and trustworthy jurisdiction. Mr. George also stressed that while some businesses may face challenges in meeting these requirements, the FIA remains dedicated to offering support and guidance, ensuring that all entities are equipped to fulfill their obligations effectively.
Enhanced International Cooperation and Recent MOUs
Mr. George discussed the FIA's commitment to international cooperation, particularly detailing the recent memorandums of understanding (MOUs) signed with Guernsey and the Bahamas. These agreements facilitate the exchange of financial intelligence and supervisory information, strengthening the BVI’s position in the global fight against money laundering and other financial crimes.
Mr. George also mentioned that additional MOUs are in progress, aiming to expand the network of cooperation with other jurisdictions. These efforts underscore the FIA's proactive approach to aligning with international standards and reinforcing its supervisory and investigative capabilities.
More than 200 persons joined the Breakfast Forum which was moderated by BVI Finance CEO, Elise Donovan. The attendees posed varied questions to Director George.
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For further information please contact:
Adrianna Soverall
Marketing and Media Relations Coordinator
asoverall@bvifinance.vg |Tel: 284-852-1957