Virgin Islands (US)

Sanctions

No

FATF AML Deficient List

No

Higher Risk

EU Commission’s list of AML/CFT deficient countries

Not on EU White list equivalent jurisdictions

EU Tax Blacklist

Medium Risk

Compliance with FATF 40 + 9 Recommendations  (mutual evaluation not yet completed)

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ANTI-MONEY LAUNDERING

FATF Status

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

 

Compliance with FATF Recommendations

The US Virgin Islands falls within the jurisdiction of the USA with regard to the Mutual Evaluation Report.

The last Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in the USA was undertaken by the Financial Action Task Force (FATF) in 2016. According to that Evaluation, the USA was deemed Compliant for 9 and Largely Compliant for 21 of the FATF 40 Recommendations. It was also deemed Highly Effective for 4 and Substantially Effective for 4 with regard to the 11 areas of Effectiveness of its AML/CFT Regime.

EU Commission’s list of AML/CFT deficient countries

On 13 February 2019, the EU Commission adopted a new list of 23 third countries that had been identified as having strategic deficiencies in their anti-money laundering and counter-terrorist financing frameworks as defined under the Fourth and Fifth Anti-Money Laundering Directives. The US Virgin Islands has been included on this list. This list currently includes all countries currently on the FATF AML deficiency lists together with 11 additional jurisdictions.

It is noted that to date the EU Member States have declined to adopt this list. However, as this country has been identified as having AML deficiencies by the EU Commission, we have rated it accordingly.

EU Tax Blacklist

The US Virgin Islands was placed on the EU Tax Blacklist on 13 March 2018.

On March 12, 2019, the EU Commission confirmed that the US Virgin Islands had taken no commitments since the first blacklist adopted in 2017 and, therefore, it will remain on the list.

SANCTIONS

There are no international sanctions currently in force against this country.

BRIBERY & CORRUPTION

 

Rating                                                                           (100-Good / 0-Bad)

Transparency International Corruption Index                           N/A

World Governance Indicator – Control of Corruption              73

ECONOMY

Tourism, trade, and other services are the primary economic activities, accounting for nearly 60% of the Virgin Island's GDP and about half of total civilian employment. The islands host nearly 3 million tourists per year, mostly from visiting cruise ships. The islands are vulnerable to damage from storms. The agriculture sector is small, with most food being imported. Industry and government each account for about one-fifth of GDP. The manufacturing sector consists of rum distilling, electronics, pharmaceuticals, and watch assembly. A refinery on St. Croix, one of the world’s largest, processed 350,000 barrels of crude oil a day until it was shut down in February 2012, after operating for 45 years.

 

Federal programs and grants, totalling $241.4 million in 2013, contributed 19.7% of the territory’s total revenues. The economy declined in 2013, due to decreases in exports resulting from the loss of refined oil products. Nevertheless, the economy remains relatively diversified. Along with a vibrant tourism industry, rum exports, trade, and services will be major income sources in future years.

 

Agriculture - products:

fruit, vegetables, sorghum; Senepol cattle

 

Industries:

tourism, watch assembly, rum distilling, construction, pharmaceuticals, electronics

 

Exports - commodities:

Rum

 

Imports - commodities:

foodstuffs, consumer goods, building materials

Country Links
Financial Services Commission
Federal Reserve Bank
Other Useful Links
FATF
US State Department
Transparency International
World Bank
CIA World Factbook

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