Comsure Briefing on Employee Screening in Section 10 of the JFSC AML/CFT/CPF Handbook [31 May 2026]

This briefing is based on the Handbook effective 31 May 2026 (applicable to all supervised persons except prescribed NPOs). For full context, please review the document's colour-coded obligations: light blue for statutory, magenta for codes, and green for guidance.

1. Section 10 of the Handbook focuses on screening, awareness, and training to mitigate risks of money laundering, terrorist financing, and proliferation financing.
2. It emphasises ensuring employees (broadly defined to include officers, temporary/contract staff, outsourced personnel, and agents in Money or Value Transfer Services [MTVS] networks) are competent, have integrity, and are equipped to detect and report suspicious activity.
3. Screening is a key control to confirm that employees, key persons, and principal persons are not criminals or associated with criminals.

Checks Required on Employees

The Handbook distinguishes between

• General employee screening and
• More stringent requirements for "key persons" and "principal persons" (e.g., those with significant influence or control, such as directors, beneficial owners with ≥10% holdings in certain partnerships, or roles like MLCO/MLRO).

Screening must be risk-based and documented.

1. General Employee Screening (Section 10.2):
• Statutory Basis: Article 11(1)(d) of the Money Laundering (Jersey) Order 2008 requires supervised persons to maintain policies and procedures for screening employees.
• Mandatory Codes (COP89): Screen the competence and probity of the following employees at recruitment and upon role changes:
• Customer-facing employees and those handling (or responsible for) business relationships or one-off transactions.
• Employees supporting the above (e.g., processing/book-keeping transactions).
• MLRO, Deputy MLRO(s), and MLCO.
• Board and senior management.
• Recommended Checks (Guidance): To demonstrate compliance, perform one or more of:
• Obtain and confirm references.
• Verify employment history and qualifications.
• Check for (or confirm absence of) regulatory actions.
• Inquire into criminal convictions (or absence thereof), subject to the Rehabilitation of Offenders (Jersey) Law 2001 and Exceptions Regulations 2002 (which limit inquiries about "spent" convictions for most roles).
2. Screening of Key Persons and Principal Persons (Section 10.6):
• Overview: These roles carry higher responsibilities, so screening focuses on ongoing fitness and propriety. If a key/principal person is also an employee, this section prevails over general screening rules.
• Statutory Basis: Supervisory Bodies (Jersey) Law 2008 (Articles 8, 14, 18, 34) empowers the JFSC to assess fitness/propriety and revoke registrations if individuals are unfit (e.g., due to convictions for money laundering, fraud, or related offences).
• Mandatory Codes:
• COP95: Take reasonable steps to ensure key/principal persons remain fit and proper per legislation and policies.
• COP96: Obtain a basic DBS check (Disclosure and Barring Service certificate) or foreign equivalent for:
• New/additional key/principal person roles.
• Existing licensees upon change of control.
• Ongoing basis using a risk-based approach (frequency based on role risk, jurisdiction/sector risk, non-compliance history).
• COP97: Provide JFSC (upon request) with supporting documents, including criminal record certificates, check summaries, and findings.
• COP98: Notify JFSC of material changes impacting fitness/propriety.
• Specific Check Details (Guidance):
• For New/First-Time Roles (Post-31 May 2026): Criminal record certificates from the current residence and any jurisdiction lived/worked in for ≥6 months in the prior 10 years. Certificates must be ≤6 months old at the time of submission.
• For Previously Authorised Individuals: On first post-31 May 2026 application, cover jurisdictions from 31 May 2026 onward. For subsequent roles, reuse if ≤12 months old; otherwise, obtain new ones.
• Ongoing: Proactive confirmations from individuals about changes; periodic renewals based on risk (more frequent for high-risk roles).
• Transparency: Key/principal persons must declare their criminal history fully; supervised persons must assess inconsistencies.
• Exclusions: Not required for passive investors, limited partners, unit holders, or vested beneficiaries in specific structures.
• Key/principal persons must be transparent - conflicts with other sections are resolved in favour of 10.6.
• If there's any overlap or contradiction between the general rules in other parts of Section 10 (e.g., less stringent checks for regular employees) and the specifics in 10.6, the rules in 10.6 take precedence for key/principal persons.
• This ensures elevated standards for those in control positions, prioritising regulatory integrity and risk mitigation over more straightforward general guidelines.

JFSC Rules/Codes for Screening/Checking Employees

• This briefing is based on the Handbook effective 31 May 2026 (applicable to all supervised persons except prescribed NPOs). For full context, please review the document's colour-coded obligations: light blue for statutory, magenta for codes, and green for guidance.
• The Handbook incorporates JFSC-issued AML/CFT/CPF Codes of Practice (mandatory under the Supervisory Bodies Law). It references statutory requirements from the Money Laundering Order and the Supervisory Bodies Law. These are enforceable, and non-compliance may result in sanctions (e.g., fines, registration revocation).
• The Handbook notes that screening policies must be consistent and appropriate, with records kept for ≥5 years (per Section 11).
• Supervised persons should seek independent advice for compliance.