Requirement to appoint a Designated Person
Proceeds of Criminal Conduct Act, 1997, as amended
Anti-Money Laundering and Terrorist Financing Code of Practice 2008, as amended
Non-Profit Organisations Act, 2012
Under the laws of the Virgin Islands (hereinafter referred to as the "Territory"), all non-profit organisations ("NPOs") operating within or from within the Territory are subject to the Anti Money Laundering and Terrorist Financing Code of Practice 2008, as amended ("the AML Code").
Additionally, under the laws of the Territory, all persons who may have reasonable knowledge or a reasonable suspicion that another person is engaged in money laundering or terrorist financing are required to make a Suspicious Activity Report ("SAR") or a Suspicious Transaction Report r'STR") with the Financial Investigation Agency ("the Agency"). This requirement extends to NPOs.
As per the AML Code,all NPOs are required to put in place systems for the reporting of SARs/STRs to the Agency.
Designated Person to be appointed
Whilst NPOs are not necessarily required to appoint a Money Laundering Reporting Officer, the Agency asks that all NPOs appoint a Designated Person for the purposes of carrying out the reporting function as well as to act as the NPO's primary contact with the Agency.
The NPO's Designated Person is responsible for ensuring that SARs/STRs are made with the Agency in a timely manner. The role of the Designated Person is therefore an important one.
To provide guidance for NPOs in determining who would be the most suitable person to appoint as the Designated Person, the Agency has set out the following criteria.
The Designated Person must:
- be a person with sufficient seniority within the NPO;
- know and have a clear understanding of the activities and operations of the NPO;
- attend, at least on an annual basis, relevant training on AML/CFT matters.
Given the importance of the role and the responsibility held, the Agency is strongly of the view that the Designated Person must be someone who is senior enough within the NPO and who has the in-depth knowledge of the operations of the NPO in order to effectively carry out the reporting function.
Additionally, in order to carry out the role effectively, it is important that the Designated Person has an understanding and knowledge of AML/CFT matters. Hence the reason why the Agency recommends that the Designated Person attends relevant training, at least on an annual basis. The Agency has chosen not to outline which training needs to be attended simply because the nature of AML/CFT is constantly evolving. It would be up to the NPO and the Designated Person to decide what is relevant training.
The Agency is inviting all NPOs operating within the Territory to consider the above guidance and notify the Agency of their Designated Person.
Please complete the Notification of Designated Person form and return it via email to the Agency at [email protected] by 15 March 2021.
Should you have any queries relating to the contents of this notice, please contact the Agency's Supervision Unit.
Please be advised that the Agency will be issuing further guidance in relation to the Designated Person role for NPOs shortly.
Click the attachment to download the form.