Financial Investigation Agency (Amendment) Act, 2021 (No. 34 of 2021)

Summary

This Act substantially amends the Financial Investigation Agency Act, 2003, restructuring the BVI's Financial Investigation Agency (FIA) and expanding its powers to receive, analyse and share financial intelligence, and to supervise designated non-financial businesses and professions (DNFBPs) for anti-money laundering, terrorist financing and proliferation financing purposes. It also establishes a formal Board to govern the Agency and creates new information-gathering, freezing-order and guideline-making powers.

• Agency status: The FIA is re-established as a body corporate with perpetual succession, capable of suing, being sued, holding property and contracting.
• New Board: A Board is created (Deputy Governor/retired judge as Chairman, Attorney General as Deputy Chairman, Financial Secretary, Commissioner of Police, Commissioner of Customs, Managing Director of the Commission and the Director) to set policy, approve the budget and supervise certain Agency functions.
• Expanded functions: The Agency's functions are expanded to include receiving suspicious activity reports, operational and strategic analysis, ordering short-term freezes of bank accounts/payments, requiring production of documents from financial institutions, DNFBPs, NPOs or other persons, and entering into MOUs with domestic and foreign counterparts.
• DNFBP supervision: New sections 5C to 5K give the Agency supervisory responsibility over DNFBPs for money laundering, terrorist financing and proliferation financing compliance.
• Information production duties: Financial institutions, DNFBPs, NPOs and other persons must produce documents or information requested by the Agency, subject to legal professional privilege, and face an offence for non-compliance.
• Guidelines process: Sections governing consultation on, publication of, and review of guidelines issued under section 20 are repealed and replaced with updated procedures requiring public notice and consideration of comments.
• Definitional and consequential changes: New and amended definitions (DNFBP, domestic competent authority, financial institution, financial offence, NPO, proliferation financing, terrorism, terrorist financing) and consequential amendments throughout the principal Act, including Schedule 1.

The amendments do not take effect immediately on passage; the Act commences on a date to be fixed by the Governor by Proclamation published in the Gazette, so the operative start date is not stated in the text itself.

Key obligations

• A financial institution, DNFBP, NPO or other person required to produce documents or information under section 4(2)(i) must produce them within five working days of the Agency's request.
• The Agency may grant an extension of time for production of documents or compliance with a freeze order, but any such extension cannot exceed five working days.
• A domestic competent authority or law enforcement agency (other than the Agency) that receives disclosed information relevant to the Agency's functions must share that information with the Agency promptly.
• A person subject to an Agency order to freeze a bank account or payment must comply, with the freeze not to exceed five working days unless extended.
• Failure to comply with a freeze order or a document/information production request is an offence, punishable on summary conviction by a fine of up to twenty thousand dollars or imprisonment of up to two years, or both.
• DNFBPs become subject to supervision by the Agency under new section 5C for compliance with money laundering, terrorist financing and proliferation financing obligations.

Applies to

financial institutions, DNFBPs (designated non-financial businesses and professions), NPOs (non-profit organisations), the Financial Investigation Agency, domestic competent authorities, law enforcement agencies

Deadlines

• such date as the Governor may, by Proclamation published in the Gazette, appoint: Commencement date of the Act (not yet fixed in the text)
• 5 working days: Period within which a financial institution, DNFBP, NPO or other person must produce documents or information requested by the Agency under section 4(2)(i)
• up to a further 5 working days: Maximum extension of time the Agency may grant for compliance with a production requirement or freeze order
• not exceeding five working days: Maximum duration of an Agency order freezing a bank account or payment under section 4(2)(g)

Related documents

• This document amends Financial Investigation Agency Act (Revised Edition 2020)