Government of the Virgin Islands publishes 2025 terrorist financing risk assessment and flags medium-high risk from misuse of Virgin Islands entities via virtual assets

The Government of the Virgin Islands has published its Terrorist Financing Risk Assessment 2025, finding that the Territory remains overall low risk for the collection and use of terrorist funds while identifying a medium-high risk in the movement of terrorist funds through Virgin Islands entities, particularly via virtual asset platforms and business companies. Developed by a cross-agency working group under the National Anti-Money Laundering Coordinating Council, the assessment analyses terrorist financing threats and vulnerabilities across financial institutions, designated non-financial businesses and professions, virtual asset service providers, and legal persons and legal arrangements. It links the elevated medium-high risk to potential misuse of complex structures, cross-border transactions and rapidly evolving technologies, and recommends enhanced training for frontline agencies, improved detection of virtual asset-related threats, and strengthened domestic and international data sharing. The assessment builds on the first terrorist financing risk assessment published in 2020 and draws on recent national risk assessments, recommendations from the 2024 Mutual Evaluation Report, and typologies and case studies. The Government indicated the findings will guide further reforms, including enhancements to the virtual asset regulatory framework, stronger law enforcement coordination and continued improvements to sanctions enforcement.