British Virgin Islands Country Summary

FATF Status

The British Virgin Islands is not on the FATF List of Countries that have been identified as having strategic AML deficiencies

Compliance with FATF Recommendations

The latest follow-up Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in the British Virgin Islands was undertaken in 2024. According to that Evaluation, the British Virgin Islands was deemed Compliant for 11 and Largely Compliant for 25 of the FATF 40 Recommendations. It remains Highly Effective for 0 and Substantially Effective for 0 of the Effectiveness ratings.

The British Virgin Islands faces challenges related to crime and corruption, although specific metrics are not available in the report. Despite these issues, the resilience of the community and governance structures plays a crucial role in addressing and mitigating the impacts of criminal activities and corruption.

The economy of the British Virgin Islands is predominantly fueled by tourism and financial services, with the latter sector generating over half of the territory's income and establishing the islands as a prominent offshore financial hub. Tourism significantly contributes around 45% to the national income, attracting visitors with its stunning beaches and sailing experiences, although the economy grapples with challenges like income inequality and susceptibility to natural disasters. The investment climate is favorable, particularly in financial services, bolstered by a stable political environment and the use of the US dollar, though ongoing discussions about transparency and regulatory compliance may influence its future attractiveness to investors.