Financial Action Task Force (FATF) 'greylisting' of British Virgin Islands and important step for financial transparency

Transparency International UK have welcomed the announcement from FATF, which sees the British Virgin Islands added to the global watchdog’s greylist of jurisdictions that need assistance and close monitoring for strategic money laundering deficiencies. 

Under the UK’s money laundering regulations, this means British banks, lawyers and other regulated businesses have to undertake additional checks on transactions involving companies from the BVI.

Corporate secrecy provided by the BVI’s financial services sectors has long provided cover for high-level corruption, money laundering and sanctions evasion.

Previous Transparency International UK research found that more than 1,100 companies from the BVI had been used in 213 corruption and money laundering cases globally, amounting to billions of pounds worth of economic damage. Over 90% of suspect funds invested into the UK via an Overseas Territory went through the British Virgin Islands, equivalent to £5.5 billion in value. This figure is likely the tip of the iceberg, with BVI companies featuring regularly in economic crime investigations by law enforcement agencies and journalists.

FATF’s greylisting of the BVI follows the Territory recently missing its legislative deadline for providing greater access to company beneficial ownership information.

Responding to the announcement Duncan Hames, Director of Policy. Transparency International UK said:

"The Government of the British Virgin Islands is yet to address the enabling of corruption, money laundering and sanctions evasion globally, by its corporate secrecy providers.

"During the Islands’ previous review, inspectors found a financial services sector that did not recognise its role in economic crime and faced next to no challenge from regulators.

"FATF’s greylisting of the BVI is a significant step which should have wide-ranging consequences; the only surprise is that it did not happen sooner.” 

Margot Mollat, Senior Policy and Research Manager, Transparency International UK added:

"It is hard to keep track of how many companies incorporated in the BVI end up being used to steal vast amounts of wealth from some of the world’s poorest people.

“Despite promising to open its corporate registers to greater scrutiny, the BVI has shown little ambition and missed deadline after deadline for delivery.

“Hopefully, this announcement will encourage the Virgin Islands Government to take its commitments more seriously, and make amends for breaking past pledges on company transparency."

• The BVI has the largest company registry in the UK’s Overseas Territories, with almost ten companies for every inhabitant. 

• The FATF’s most recent evaluation report for the BVI highlighted numerous deficiencies in its approach to managing money laundering risks, including:

  • the authorities failing to recognise the role companies incorporated in the Virgin Islands play in economic crime beyond its borders

  • inadequate anti-money laundering checks by the trust and company services industry
  • lax oversight of the industry from regulators
• At the 2024 Overseas Territories Joint Ministerial Council hosted by the UK, the BVI Government committed to introducing access to its beneficial ownership registers to those with a ‘legitimate interest’ in this information. It pledged to introduce legislation enabling this by April 2025 with the system being operational by June 2025 or earlier
• As of June 2025, it has missed the first deadline and due to miss the second.
• The BVI’s proposed policy for access to beneficial ownership registers was criticised by civil society organisations and UK MPs who accused the BVI of obstructing access to beneficial ownership data, and putting at risk the investigators and journalist who play a critical role in tackling money laundering and corruption.