FIA to share data with foreign agencies

Under new amendments to the FIA Act, the Financial Investigation Agency (FIA) will soon be empowered to share critical information with foreign counterparts.

Premier Dr Natalio Wheatley emphasised these changes during a recent House of Assembly sitting as the territory looks to strengthen anti-money laundering and counter-terrorism efforts.

Premier Wheatley explained that the FIA is pivotal in supporting various agencies and authorities in anti-money laundering and counter-terrorism efforts. He outlined that the Financial Investigation Agency Amendment Bill 2024 would enhance the agency’s ability to disclose information to foreign financial investigation bodies. This includes reporting crimes or potential crimes, initiating criminal investigations, and providing assistance to ongoing investigations and criminal proceedings abroad.

According to the Premier, the FIA has been operating since 2004 and is critical to the BVI’s financial services sector. The agency not only oversees financial institutions but also monitors non-profit organisations (NPOs) and designated non-financial businesses and professions (DNFBPs) to ensure compliance with international standards.

One of the critical updates in the proposed amendments is the empowerment of the FIA to adopt a “risk-based approach.” This approach will allow the agency to assess the level of risk posed by certain entities, particularly NPOs and DNFBPs, and adjust its regulatory efforts accordingly. Wheatley highlighted that this would prevent overly burdensome regulations for local businesses that pose a low risk to the global financial system. “Nobody expects the Boy Scouts or the Girl Guides to be involved in terrorist activity or proliferation financing or laundering of money,” he noted.

Shortcomings

The proposed amendments also aim to address shortcomings identified in a 2024 mutual evaluation report by the Caribbean Financial Action Task Force (CFATF). These changes will enable the FIA to better prevent money laundering, terrorist financing, and other illicit activities by increasing its enforcement powers and ability to cooperate with foreign agencies. “These enhancements are crucial for empowering the FIA to fulfil its mandate more effectively,” Premier Wheatley added.

While the Premier stressed the importance of these updates, he acknowledged concerns from members of the House about the impact on local businesses. “We must ensure that we do all we can to ensure that that negative impact is mitigated against,” he said, emphasising the need to balance international compliance with the well-being of local companies.

The amendments are part of the government’s ongoing commitment to maintaining the BVI’s reputation as a well-regulated financial services jurisdiction. The bill received strong support from both government and Opposition members, who recognised the need for the territory to remain compliant with global financial standards while protecting the interests of local businesses.