Regulatory Alerts2024-12-20
Institutional Risk Assessments
The Financial Services Commission and Financial Investigation Agency of the Virgin Islands have issued guidelines mandating financial institutions and designated non-financial businesses to conduct comprehensive Institutional Risk Assessments (IRAs) to mitigate money laundering, terrorist financing, and proliferation financing risks. Licensees must document, secure Board or senior management approval for, and annually update these assessments by evaluating inherent risks across products, customers, geographic locations, and delivery channels using a structured scoring framework. The guidelines require licensees to implement targeted controls, leverage technological tools for risk mapping, and maintain accessible records to ensure ongoing regulatory compliance and effective resource allocation against evolving financial crime threats.