Proceeds of Criminal Conduct (Amendment) Act, 2021 (No. 25 of 2021)

Summary

This Act amends the BVI Proceeds of Criminal Conduct Act, 1997 to modernise the anti-money laundering and terrorist financing (AML/CFT) framework. It broadens the definition of property to expressly capture virtual assets, adds statutory definitions of money laundering and terrorist financing, and replaces the old Steering Committee/Reporting Authority structure with the Financial Investigation Agency (the Agency) as the central body for receiving suspicious transaction reports and disclosures.

• Virtual assets brought into scope: The definition of property is amended to include virtual assets, defined as any digital representation of value that can be digitally traded or transferred and used for payment or investment purposes.
• Agency as central reporting authority: New section 26A makes the Financial Investigation Agency the authority responsible for receiving suspicious transaction reports and other disclosures relating to money laundering or terrorist financing; all such reports must be made to the Agency.
• New coordinating council: New section 26B establishes the National Anti-money Laundering and Terrorist Financing Coordinating Council, chaired by the Premier, to coordinate AML/CFT policy and compliance with international standards.
• Mandatory parallel investigation: New section 5A requires a police officer or the Agency, when investigating criminal conduct or a financial offence, to also investigate any related money laundering or terrorist financing offence where reasonable to do so.
• Advisory Committee expanded: Section 27A is amended to allow the Joint Anti-money Laundering and Terrorist Financing Advisory Committee to have up to 16 members (previously 14).
• Cash seizure powers updated: Section 37A is amended so that police or customs officers may seize and detain cash found in the Territory, or imported/exported in an amount not less than $10,000, where there are reasonable grounds to suspect it relates to criminal conduct.
• Terminology replaced throughout: References to the former Steering Committee and Reporting Authority in sections 28, 29, 30, 30A, 31 and 34B are replaced with references to the Agency.

The Act does not take effect immediately on passage or gazetting; it comes into force on a date to be appointed by the Governor by Proclamation in the Gazette, which had not yet been specified in this text.

Key obligations

• Persons or entities subject to a statutory obligation to make a suspicious transaction report or other disclosure relating to money laundering or terrorist financing must submit that report or disclosure to the Financial Investigation Agency.
• A police officer or the Agency investigating criminal conduct or a financial offence must, where reasonable, also investigate any related money laundering or terrorist financing offence.
• Police officers and customs officers are empowered (not merely permitted informally) to seize and detain cash of not less than $10,000 found in the Territory or being imported/exported where there are reasonable grounds to suspect it is connected to criminal conduct.

Applies to

persons and entities subject to AML/CFT reporting obligations under the Proceeds of Criminal Conduct Act, virtual asset businesses (via expanded property/virtual assets definition), the Financial Investigation Agency, the Financial Services Commission, police officers, customs officers, members of the Joint Anti-money Laundering and Terrorist Financing Advisory Committee

Deadlines

• on such date as the Governor may by Proclamation published in the Gazette appoint: Commencement date of the Act (not yet fixed in the text provided).

Related documents

• This document amends Proceeds of Criminal Conduct Act (Revised Edition 2020)