Proliferation Financing (Prohibition) (Amendment) Act, 2024

No. 20 of 2024 VIRGIN ISLANDS PROLIFERATION FINANCING (PROHIBITION) (AMENDMENT) ACT, 2024 ARRANGEMENT OF SECTIONS SECTION

1. Short title and commencement
2. Section 15 amended
3. Section 16 amended
4. Section 37 amended
5. Section 38 amended
6. Section 49A inserted

2 No. 20 of 2024 Proliferation Financing (Prohibition) Virgin (Amendment) Act, 2024 Islands I ASSENT Daniel Pruce, Governor. 23rd September,2024 VIRGIN ISLANDS No. 20 of 2024 AN ACT TO AMEND THE PROLIFERATION FINANCING (PROHIBITION) ACT, 2021, NO. 20 OF 2021, TO MAKE THE LIABILITY IDENTIFIED IN SECTIONS 15 AND 16 A STRICT LIABILITY OFFENCE, TO MAKE IT A REQUIREMENT TO REPORT ANY TRANSACTION INVOLVING ANY AMOUNT CONCERNING A DESIGNATED COUNTRY, PERSON OR ENTITY AND FOR OTHER MATTERS CONNECTED THEREWITH. [Gazetted 26th September, 2024] ENACTED by the Legislature of the Virgin Islands as follows: Short title and commencement

1. (1) This Act may be cited as the Proliferation Financing (Prohibition) (Amendment) Act, 2024. (2) This Act shall come into force on such date as the Governor may, by Proclamation published in the Gazette, appoint. Section 15 amended
2. The Proliferation Financing (Prohibition) Act, 2021, No. 20 of 2021(hereinafter referred to as “the principal Act”) is amended in section 15(1) by deleting the opening paragraph thereof and substituting the following opening paragraph: “No person shall deal with an asset that is owned, controlled or held, directly or indirectly, wholly or jointly”.

3 Section 16 amended 3. The principal Act is amended in section 16(1) by deleting the opening paragraph thereof and substituting the following opening paragraph: “No person shall make an asset available, directly or indirectly, wholly or jointly”. Section 37 amended 4. The principal Act is amended in section 37 (a) in subsection (1) (i) in paragraph (a), by deleting the words “exceeding $10,000”; and (ii) in paragraph (c), by deleting the words “of a value exceeding $10,000”; (b) by inserting after subsection (1), the following new subsection: “(1A) A person who, acting in compliance with section 15 or 16, knows of any dealing or attempted dealing in an asset or the making available of an asset, shall make a report to the Agency (a) in the case of a dealing or attempted dealing in an asset, by identifying the designated person or entity (i) who owns, controls or holds the asset; (ii) on whose behalf the asset is owned, controlled or held; and (iii) at whose direction the asset is owned, controlled or held; and (b) in the case of the making available of an asset, by identifying (i) the designated person or entity to whom the asset is to be made available; (ii) the person or entity owned or controlled by a designated person to whom the asset is to be made available; (iii) the person or entity acting on behalf of a designated person or entity to whom the asset is to be made available; and (iv) the designated person or entity for whose benefit the asset is to be made available.”; (c) in subsection (3), by deleting the words “under subsection (1)” and substituting the words “under subsection (1) or (1A)”; (d) in subsection (4), by deleting the words “under subsection (1)” and substituting the words “under subsection (1) or (1A)”;

4 (e) in subsection (5), by deleting the words “under subsection (1)” and substituting the words “under subsection (1) or (1A)”; and (f) in subsection (6), by deleting the words “under subsection (1)” and substituting the words “under subsection (1) or (1A)”. Section 38 amended 5. The principal Act is amended in section 38(1) by deleting paragraph (b). Section 49A inserted 6. The principal Act is amended by inserting after section 49, the following new section: “Power to issue guidelines 49A. (1) The Agency may issue guidelines with respect to the procedures to be followed by and the conduct expected of persons on whom obligations are placed under this Act and with respect to any other matter concerning this Act. (2) Without prejudice to subsection (1), the guidelines may provide guidance on (a) designations made under this Act or pursuant to a designated country resolution; (b) the issuing of notices to designated persons or any other persons in relation to matters of which a notice may be issued; (c) the freezing of assets under sections 15 and 16; (d) the enforcement of prohibited transactions and other activities specified under or related to this Act or a resolution of the UN Security Council; (e) the reporting of obligations imposed under this Act; (f) the reporting and verification of suspicions received from persons in relation to assets held by such persons; (g) the restrictions relating to the disclosure of information; (h) the monitoring of financial institutions and DNFBPs, to promote compliance with the requirements of this Act; and (i) feedback to the persons and entities subject to this Act with respect to suspicious transaction reports made by them. (3) The guidelines may make different provisions in relation to different persons, circumstances or cases. (4) The Agency shall (a) from time to time review the guidelines to ensure their relevance and practical implementation; and

5 (b) publish the guidelines and any amendments thereto on its Internet site. (5) Failure to follow guidelines issued under this section shall not, of itself, render a person liable to proceedings of any kind, but such failure may be taken into account by a court or the Agency, as the case may be, in determining whether there has been a contravention of this Act.”. Passed by the House of Assembly this 4 th day of September, 2024. (Sgd.) Corine N. George-Massicote, Speaker. (Sgd.) Bethsaida Smith-Hanley, Clerk of the House of Assembly.