European Union update on British Virgin Islands

The European Union has announced that the British Virgin Islands has been added to its list of high-risk third-country jurisdictions for anti-money laundering purposes. This follows the BVI’s placement on the FATF Grey List earlier this year and reflects an automatic alignment of EU rules with FATF decisions, rather than a new or independent EU assessment of the BVI. EU monitoring is part of a standard process for jurisdictions that are committed to strengthening their compliance frameworks, and listing is not permanent.

The BVI has continued to make strong progress in strengthening its AML/CFT framework. In its most recent technical assessment, the CFATF rated the jurisdiction Compliant or Largely Compliant with all 40 FATF Recommendations, and the EU acknowledged the BVI’s high-level political commitment and ongoing reforms. The territory is actively working with FATF and CFATF on its action plan and aims for swift removal from the Grey List within the next two years.

The updated list will take effect unless the EU Parliament or Council objects within the next month and will formally enter into force 20 days after publication in the Official Journal.

At this time, clients with BVI companies or structures do not need to do anything. Harneys Fiduciary is closely monitoring developments and will continue to provide updates as the situation evolves. We also continue to support the government and competent authorities in the BVI through our active participation with various industry bodies.

If you have any questions, please do not hesitate to reach out to your usual Harneys Fiduciary contact.