Regulatory Alerts2025-01-24
An Effective Approach to Ongoing Monitoring
The Virgin Islands Financial Services Commission and Financial Investigation Agency have issued guidelines mandating that all licensed financial institutions and designated non-financial businesses implement risk-based ongoing monitoring systems for their customers, including legal persons and arrangements. Licensees must establish robust procedures to continuously assess transaction patterns, identify trigger events and red flags, verify beneficial ownership structures, and ensure board-level oversight while addressing outsourcing arrangements and sanctions compliance. These measures require staff training, data integrity checks, and targeted scrutiny of higher-risk activities to effectively mitigate money laundering, terrorist financing, and proliferation financing risks in alignment with international standards.