Following discussions with members of the Nevis financial services industry and various international economic and trade organisations, Nevis recently introduced four pieces of legislation (available to download at www.amsbvi.com) designed to assist in the international fight against money laundering, provide a mechanism for the exchange of information on the proceeds of crime with foreign authorities and generally tighten regulation of the offshore financial industry in Nevis.
The Proceeds of Crime Act, 2000 provides for the freezing, forfeiture and confiscation of the proceeds of criminal activity by creating new offences and procedures to combat money laundering and enabling the enforcement of overseas freezing, forfeiture and confiscation orders. To facilitate cooperation with foreign authorities and to compliment the Proceeds of Crime Act, Nevis has also introduced the Financial Intelligence Unit, Bill 2000. The Bill establishes a Financial Intelligence Unit (made up primarily of members of Government and Industry) whose primary function is to collect analyse and disseminate information relating to the proceeds of crime.
To reduce the risk to the public of financial loss due to unscrupulous or incompetent financial service providers and enhance the reputation of Nevis as a reputable, well-regulated offshore jurisdiction, legislators have introduced the Financial Services Commission, Bill 2000. This Bill paves the way for tighter regulation of the financial services industry in Nevis through the establishment of a Financial Services Commission and the appointment of regulators. Part of the powers of the Commission is to seek and exchange information relating to the supervision and regulation of financial services with both Nevis authorities and in certain circumstance foreign authorities.
The anti-money laundering emphasis extends to Nevis Trust law by way of the Nevis International Exempt Trust (Amendment) Ordinance, 2000. One of the major changes is to make a Nevis trust invalid and unenforceable where any part of the trust assets are the proceeds of a crime for which the settlor is convicted.
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