(7)The British Virgin Islands made a high-level political commitment in June 2025 to work with the FATF and the Caribbean Financial Action Task Force (CFATF), which is its FSRB, to strengthen the effectiveness of its AML/CFT regime. Since the adoption of its MER in November 2023, the British Virgin Islands has made significant progress on certain actions recommended in the MER, including increasing requests for international cooperation; establishing a CFT strategy and enhancing the analytical processes to identify TF cases; conducting a risk assessment of the non-profit organisations (NPO) sector and identifying the specific NPOs at risk of TF abuse; improving coordination, outreach and training to implement TF and PF-related targeted financial sanctions; and enhancing supervision and monitoring of implementation of targeted financial sanctions by financial institutions and designated non-financial businesses and professions (DNFBPs). The British Virgin Islands will continue to work with the FATF to implement its FATF action plan by enhancing risk-based supervision of trust and company service providers (TCSPs), investment businesses and virtual asset service providers (VASPs); ensuring that accurate and up-to-date beneficial ownership information is available to competent authorities and breaches to the related obligations are sanctioned; improving the quality of suspicious activity reports (SARs) and ensuring that reporting is in line with risk; systematically pursuing ML investigations and prosecutions in accordance with the risk they pose; increasing the seizure and confiscation of criminal proceeds; and operationalising the new asset management framework. While recognising and welcoming the commitment and progress made by the British Virgin Islands so far, and encouraging further efforts, the Commission considers that the British Virgin Islands has not yet fully addressed the strategic deficiencies that led to its addition to the FATF’s list of ‘Jurisdictions under Increased Monitoring’. The British Virgin Islands should therefore be considered a high-risk third country.