Key changes in the Regulations:

Appointment of Money Laundering Reporting Officer (MLRO)

• Every relevant entity is now required to appoint an MLRO with a minimum of three years’ experience and qualifications (at least a diploma). This officer must ensure compliance with AML, terrorist financing, and proliferation financing regulations.  The AML Regulations define “relevant business”, and include within the AML/CFT legislative framework, certain legal professionals, accountants and notaries public as well as real estate agents undertaking buying and selling.
• The AML Regulations also outlines the basic obligations an institution or organization must meet to fulfill their AML obligations including establishing and maintaining identification and verification procedures, maintaining records and transactions, appointing a Money Laundering Reporting Officer (“MLRO”), ensuring staff is trained and establishing procedures in relation to suspicious activities and suspicious transactions.
• Approval for the appointment must be obtained from the Financial Services Commission or the Financial Investigation Agency, depending on the entity’s regulatory body.
• The MLRO must have access to all relevant internal information to perform their duties and must notify the regulatory body within 14 days if they leave the role. A new MLRO must be appointed within 21 days.

Enhanced responsibilities and controls

• The amended Code of Practice outlines detailed internal control measures that entities must implement, including:
• Compliance management and designation of senior management to oversee AML functions
• Ongoing employee training on AML/CTF matters
• Regular independent audits to ensure compliance
• Entities with three or fewer employees can now apply for a senior officer or director to serve as the MLRO, provided they meet the qualification standards

Streamlined processes and clarity

• The amendments provide clear guidance on how regulatory authorities will assess MLRO qualifications and outline procedures for replacing MLROs. Additionally, minor updates were made to re-number sections for clarity and consistency in both the regulations and the code of practice.

These updates highlight the Virgin Islands’ commitment to maintaining a robust and modern framework to combat financial crimes, ensuring that regulated entities are well-equipped to meet global AML and terrorist financing standards.

These amendments will come into effect on a date specified by the Minister through an official notice.

The Anti-Money Laundering and Terrorist Financing (Amendment) Code of Practice, 2024 can be found here.

The Anti-Money Laundering (Amendment) Regulations, 2024 can be found here.

Contact us today for more information on how we can provide MLRO services to your regulated entity, funds, real estate agency, yachts and restaurants.

Need Regulatory help?

Reach out to us today.

Contact us: info@ocrsolutionsltd.com