On 26 November 2024, the British Virgin Islands Financial Services Commission (FSC) and Financial Investigation Agency (FIA) jointly issued new guidance titled "Effective Enhanced Customer Due Diligence Measures". This document aims to support Financial Institutions (FIs) and Designated Non-Financial Businesses and Professions (DNFBPs) in managing risks tied to money laundering, terrorist financing, and proliferation financing, particularly when handling higher-risk customers or situations.
Key highlights:
- Focus on compliance: The guidance reinforces compliance with local regulations, including the Anti-Money Laundering and Terrorist Financing Code of Practice and the Regulatory Code.
- Enhanced due diligence (ECDD): Supervised entities are urged to employ ECDD when dealing with higher-risk customers, such as politically exposed persons, ensuring an understanding of customers' source of wealth and funds.
- Third-party introducers: It outlines how ECDD can mitigate risks associated with customers introduced through third-party relationships.
- Beneficial ownership: Emphasis is placed on identifying ownership structures, particularly in complex or high-risk scenarios.
The guidance offers examples of situations requiring ECDD and stresses the importance of reporting suspicious activities to the FIA. It also underscores the need for robust policies, controls, and ongoing monitoring of customer relationships.
The guidance is available on the FSC's website here and on the FIA's website here.
FSC's press release can be accessed here.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
