Managing Director and CEO of the FSC, Mr Kenneth Baker (left) and Director of the FIA, Mr Errol George (right). Photo: Internet Source

The BVI Financial Services Commission (FSC) is an autonomous regulatory body that oversees all financial services in the Virgin Islands. Photo: BVIFSC

The BVI FIA is an autonomous law enforcement agency that prevents and detects financial crime. Photo: FIA

This publication, according to a November 2024, press release is for the benefit of their respective supervised entities.

The Institutional Risk Assessment guide aims to assist financial institutions supervised by the FSC and Designated Non-Financial Businesses and Professionals supervised for AML/CFT purposes by the FIA in conducting a proper and effective institutional risk assessment (IRA) through the implementation of a risk-based approach, the release explained.

It also reinforces provisions within the Anti-Money Laundering Regulations and the Anti-Money Laundering and Terrorist Financing Code of Practice.

An explanation as to why entities should carry out an IRA and identifies the types of risk that should be taken into consideration when determining levels of risk exposure, can also be found in the guide.

These types of guides are proven to be ‘effective tools’- FSC Managing Director

Managing Director and CEO of the FSC, Mr Kenneth Baker stated, “While risk is unavoidable, Institutional Risk Assessments have been proven to be effective tools in identifying and mitigating ML, TF, and PF risks.”

Mr Barker on behalf of the FSC encouraged its licensees to carry out Institutional Risk Assessments to enhance regulatory compliance, institutional effectiveness and legislative conformity.

“I hope that our licensees will see it fit to utilise this resource to aid them in proactively assessing their ML, TF and PF risk,” he added.

Meanwhile, Director of the FIA, Mr Errol George said, “Risk is not a one-off issue since identifying, evaluating and mitigating it calls for continuous focused and proactive top-down efforts.”

The guide he added provides a good “springboard for DNFBPs” for understanding their role in protecting their business operations and the Virgin Islands’ financial systems integrity.