Proceeds of Criminal Conduct (Amendment) Act, 2023

Summary

This Act amends the BVI Proceeds of Criminal Conduct Act, Revised Edition 2020, primarily by increasing several monetary penalties, reducing some maximum prison terms, adding a new court order mechanism for monitoring bank accounts in money laundering investigations, and adding a defence for financial institutions that share information under group-wide AML/CFT programmes.

• Higher fines: Maximum fines under sections 27, 29, 30A and 34B are raised (e.g. from $150,000 to $200,000, from $500,000 to $750,000, from $10,000/$25,000 to $50,000/$100,000).
• Reduced prison terms: Maximum imprisonment terms under sections 28 and 30 are reduced from 14 years to 10 years.
• New account monitoring orders: A new section 35A allows a court, on application by the Financial Investigation Agency or police, to order a financial institution to provide specified account information for up to 90 days for a money laundering investigation; applications may be made ex parte.
• Information sharing defence: Section 31 is amended to exempt from criminal liability disclosures made under a financial group's AML/CFT group-wide information sharing programme (per section 53A of the AML/CFT Code of Practice).
• Housekeeping amendments: Sections 36 and 37 are amended to remove a now-redundant cross-reference to the definition in section 31(7); section 29's subsections (2)-(4) are repealed.

The Act itself does not take effect immediately; it comes into force on a date to be appointed by the Minister by Notice in the Gazette. Financial institutions and other AML/CFT relevant persons should be aware of the new account monitoring order regime and the increased penalties once the commencement date is set.

Key obligations

• Financial institutions must comply with account monitoring orders issued by a court, providing the specified account information to the Financial Investigation Agency or a police officer for the period stated in the order (not exceeding 90 days)
• A financial institution or affected person may apply to the court to discharge or vary an account monitoring order
• Financial institutions relying on the new information-sharing defence must ensure disclosures are made strictly in accordance with group-wide AML/CFT information sharing programmes under section 53A of the AML/CFT Code of Practice to avoid liability under section 31

Applies to

financial institutions, relevant persons carrying on relevant business under the Anti-money Laundering Regulations, persons subject to the Proceeds of Criminal Conduct Act (money laundering offences)

Deadlines

• on such date as the Minister may appoint by Notice published in the Gazette: Commencement date of the Act (not yet fixed in the text)
• 90 days beginning with the day the order is made: Maximum period specified in an account monitoring order under new section 35A

Related documents

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