Regulatory Alerts2024-10-23
Mitigating Risks with Introduced Business Relationships
The Virgin Islands Financial Services Commission and Financial Investigation Agency have issued these guidelines to establish a comprehensive compliance framework for financial institutions and designated non-financial businesses managing third-party introduced relationships. Licensees must conduct rigorous due diligence on introducers, verify immediate access to customer identification and beneficial ownership data, and implement continuous testing of third-party agreements. By aligning with FATF Recommendation 17 and local anti-money laundering regulations, the guidance mandates a risk-based approach that strengthens compliance, mitigates money and terrorist financing vulnerabilities, and ensures regulatory transparency.
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