Anti-Money Laundering Measures  updated

By Mellica McPherson

The Legislative Council in its commitment to ensuring that the BVI maintains its reputation as a clean financial jurisdiction passed an Act that would require that financial entities be more cognizant, alert and informed of money laundering tactics so that they will be able to identify and report potential money laundering ploys.

The “Proceeds of Criminal Conduct (Amendment) Act, 2006 was brought before the Legislative Council on Tuesday 3 October, and was passed with the full support of all of the Members.

The mover of the motion Attorney General, Hon. Cherno Jallow told the Council that the Act is designed to provide a system of mandatory reporting. He explained that under this new legislation financial institutions and other providers of financial services will be obligated to report suspected money laundering  transactions.

The learned Attorney General mentioned that there will be penalties for institutions and individuals who abstain from reporting suspected activities. He mentioned that a special steering Committee consisting of approximately 20 individuals will be given responsibilities and powers that will be necessary for the execution of certain aspects of the Act.

However, before the Act was debated and given its third reading, Hon. Jallow requested that the measures that are stated in the Bill not be seen as statutes to over regulate, but rather as a means of protecting the Territory.

The motion was seconded by, Deputy Chief Minister, and Minister responsible for Finance Hon. Ronnie Skelton, who told the Council that “it is important that we try to modernize our laws, but at the same time  try to ensure that we don’t over do it.” He explained his statement by pointing out that “if we over regulate, the businesses will go elsewhere, but if we under regulate we might end up with a public relations problem on our hands.” Therefore the Finance Minister recommended that “we use all the brain matter we have to survive in the industry.”

Representative for the Seventh District, Dr. the Hon. Kedrick Pickering mentioned that the BVI is a small country that is playing in a big market, therefore  it is critical that “we have people who understand the issues and fight for the BVI’s cause.” Dr. Pickering reminded that the bulk of the Territory’s financial resources come from financial services, and “the day we have a financial scandal, it will be like a tsunami, so we have to be careful.”

Leader of the Opposition, Hon. Ralph T. O’Neal agreed with the AG that the objective of the Bill is good. He said that he fully supports implementing legislation that is up-to-date and sound, so as to avoid situations that can affect the Territory: “The cleaner your jurisdiction is, the more the crooks will want to operate in it, so we also have to find ways to keep them out,” the seasoned politician pointed out.

The Leader of the Opposition stated that the issue of money laundering is becoming more and more complicated. However, he informed other members of the Council that he was not in agreement to delegate the responsibility of the enforcement of certain aspects of the Act to a Steering Committee.

First District Representative, Hon. Andrew Fahie also rose to give his support to the Bill and in the process gave a brief overview of the history of the BVI Financial Services.  He also stressed the importance of the BVI remaining on the cutting edge.

Chief Minister, Dr. the Hon. D. Orlando Smith also reflected on the history of the financial services sector before the Bill passed through committee stage with amendments.