Updates on Financial Investigation Agency: Legislative Amendments and Mutual Evaluation Readiness
Ongoing preparations for the upcoming Mutual Evaluation, introduction of AMLive STR e-Reporting Portal, legislative amendments, and additions impacting the Financial Investigation Agency. The FATF Mutual Evaluation scheduled for July 2022 assesses the Territory's anti-money laundering measures. Entities can now use AMLive for secure chat, submission of documents, and sanction screenings. Recent legislative changes include amendments to anti-money laundering and counter-terrorism laws effective from July to August 2021.
- Financial Investigation Agency
- Mutual Evaluation
- AMLive
- Legislative Amendments
- Anti-money Laundering
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Presentation Transcript
BVIACO 5thAnnual Compliance Conference Financial Investigation Agency Industry Update PRESENTED BY: DWYANE A. THOMAS DEPUTY DIRECTOR FINANCIAL INVESTIGATION AGENCY
What have we been up to? Ongoing Preparations for the upcoming Mutual Evaluation AMLive STR Online e-Filing Portal New Legislation and amendments to Old/Principal Legislation Public Notice issued Imposition of Fines Supervision and Enforcement DNFBP Registration Guidance notes for DNFBP sectors Statistics: STRs and BOSSS Trends Covid Lockdowns
FATF Mutual Evaluation is set: JULY 2022 The upcoming mutual evaluation of the Territory is an in-depth assessment of the implementation and effectiveness of measures to combat money laundering, terrorist financing and proliferation financing. ARE WE READY?
AMLive STR e-Reporting Portal Initial rollout of AMLive to a select group to assess its functionality from the industry perspective In the meantime, Entities can continue to submit STRs via email AMLive offers instant message capabilities where Entities can chat securely with one of the Analyst assigned to their case regarding requests and/submissions Submission of requested Documents can be shared via platform All required fields must be entered to ensure proper submission of STRs AMLive also offers users the ability to conduct Sanction Screenings Interfaces directly with current database which allows for easy uploads of data and report generation IF YOUR ENTITY HAS BEEN INCLUDED IN THE INITIAL ROLLOUT, WE WELCOME YOUR FEEDBACK AS WE WORK TO STREAMLINE THE PROCESS AND IMPROVE ITS EFFECTIVENESS.
Legislative Amendments and additions Amendments were made to several pieces of legislation that touch and concern the Agency, which are now in force. The pieces of legislation, are as follows: Proceeds of Criminal Conduct (Amendment) Act 2021 (came into force on 9 July 2021) Financial Investigation Agency (Amendment) Act 2021 (came into force on 13 August 2021); and Drug Trafficking Offences (Amendment) Act, 2021 (came into force on 9 July 2021) Additionally, two new pieces of legislation, which also apply to the Agency, are also now in force. They are as follows: Counter-Terrorism Act (came into force on 13 August 2021); and Proliferation Financing (Prohibition) Act, 2021 (came into force on 9 July 2021 and repealed the Proliferation Financing (Prohibition) Act, 2009)
Public Notice Imposition of Fines Issued 17 September 2021 The Financial Investigation Agency ( FIA ) is hereby notifying the public that based on section 5K of the Financial Investigation Agency Act, 2003, as amended by the Financial Investigation Agency (Amendment) Act, 2021 ( the Act ), the FIA can now impose fines for the commission of any offence that prescribes a fine under the Act, including failure to comply with a request to produce documents within the specified time period of five working days. ALL ARE ASKED TO TAKE NOTE AND BE GUIDED ACCORDINGLY.
Statistics Suspicious Transaction Reports 2021 Suspicious Transaction Reports made by Reporting Entities Quarter TOTAL 1 2 3 4 Banking Sector 36 43 32 54 165 Trust and Corporate Services 44 62 29 34 169 Insurance Business 0 1 0 6 7 Investment Business 0 0 0 1 1 Insolvency Services 3 1 3 0 7 Designated Non-financial Business 3 3 4 1 11 Other 1 2 1 0 4 Total STRs 87 112 69 96 364
Statistics Beneficial Ownership Secure Search System (BOSSS) EXPECTATIONS 500000 450000 400000 350000 300000 250000 200000 150000 100000 50000 0 Annual Total 2017 2018 2019 2020 2021
Statistics Beneficial Ownership Secure Search System (BOSSS) ACTUALS 160 TOTAL to date: 555 140 142 130 120 126 100 80 119 60 40 38 20 0 Annual Total 2017 2018 2019 2020 2021
Supervision and Enforcement The monitoring and supervision of the DNFBPs remains the responsibility of the Financial Investigation Agency, as stipulated by Law. In order to bring the BVI in line with FATF Standards, in August 2021, the FIA Amendment Act was passed. One of the changes being brought about by the Amendment Act is the implementation of a DNFBP Register. Very shortly all DNFBP categorised businesses will be required to register with the Agency. At the start of the new year, the Agency will be publishing all registration requirement and guidance notes to aid businesses in the registration process, so please watch out for those. Guidance Notes for DNFBPs drafted and awaiting Board approval: Legal Practitioners; Accountants; Real Estate Agents and High Value Goods Dealers (jewelers, art dealers, car dealers, yacht dealers, heavy machinery, etc..)
Trends: Post 2020 COVID 24hr Lockdown and curfew Domestically Local business temporarily shifted to a cash only environment, as a result of poor internet service to process credit card payments (No STRs filed) Large and unusual deposits (STRs filed) Wire Transfer vs Money Remitters (STRs filed) Resurgence of Ponzi schemes (No STRs filed) Internationally Virtual Assets (STRs filed)
