CFATF Updates Technical Compliance Ratings for Suriname and British Virgin Islands

The Caribbean Financial Action Task Force (CFATF) has published updated evaluations assessing the progress of regional jurisdictions in combating illicit financial activities, reflecting technical compliance re-ratings for Suriname and the British Virgin Islands through May 2025. The reports highlight legislative and operational improvements made by both territories and underscore their efforts to align domestic regulations with international standards for transparency and risk mitigation. These updates come after both jurisdictions undertook significant reforms to address previously identified gaps in their anti-money laundering and counter-terrorist financing (AML/CFT) frameworks.

The CFATF assessments awarded technical compliance re-ratings only after determining that sufficient progress had been made in meeting the rigorous criteria established by global regulators. For the British Virgin Islands, the second enhanced follow-up report records successful re-ratings for four key recommendations, including substantial improvements in oversight of non-profit organizations. Suriname’s third enhanced follow-up report similarly demonstrates continued commitment to addressing deficiencies, particularly in the reporting of unusual transactions.

The British Virgin Islands has a documented history of tackling shortcomings identified in its 2023 Fourth Round Mutual Evaluation Report, which placed it under enhanced follow-up after low or moderate effectiveness ratings in seven of eleven outcomes. A longstanding challenge involved Recommendation 8, which was initially rated non-compliant due to inadequate identification of non-profit organizations at risk of terrorist financing. To address this, the territory published a detailed risk assessment for the sector in August 2024, specifying threats related to fund collection and transfer. Legislative amendments to the Financial Investigation Agency Act have further strengthened authorities’ ability to apply risk-based supervision to the most vulnerable entities. Additional measures focused on increasing transparency for legal persons, ensuring that basic and beneficial ownership information is more readily accessible to competent authorities. The British Virgin Islands also updated its National AML/CFT/CPF Policy in 2024, committing to review risk assessments every three years to maintain ongoing regulatory effectiveness.

Suriname’s compliance journey reflects a history of technical shortcomings, with its 2022 Mutual Evaluation Report placing the country under enhanced follow-up after recording eight or more non-compliant or partially compliant ratings. Since then, the nation has achieved re-rating upgrades for twelve recommendations between 2023 and 2024. A major step involved the enactment of the WMTF Act, replacing the older WID Act and consolidating anti-money laundering and counter-terrorist financing mandates into a unified legal framework. This legislation obliges service providers to report unusual transactions to the financial intelligence unit without delay and implement enhanced customer due diligence measures. Suriname also established FIU Suriname as an autonomous body and joined the Egmont Group in May 2024. While improvements have been made in oversight of sectors such as precious stone dealers and life insurance providers, certain gaps persist, notably in verifying beneficial owners for complex legal arrangements.

Both jurisdictions remain under enhanced follow-up, a status reserved for members with notable deficiencies in technical compliance or effectiveness ratings. The British Virgin Islands is scheduled for a reassessment of its non-profit sector in 2027 to ensure continued integrity of its risk-based approach. Suriname is focusing on finalizing an online declaration system for currency movements and clarifying the duration for which assets can be restrained. Authorities in Suriname are also working to update guidance for financial institutions to guarantee immediate communication of de-listing actions and asset unfreezing. Ongoing monitoring by regional experts seeks to ensure that these territories continue progressing toward full compliance with international standards. The evolution of these frameworks reflects a shared regional priority to secure the financial system against emerging global threats while maintaining cooperation with international partners.

By fLEXI tEAM