Financial Services (Disclosure and Provision of Information) (Jersey) Amendment Law 202- Adopted by the States  11 September 2024

The Financial Services (Disclosure and Provision of Information) (Jersey) Amendment Law 202- was adopted by the States of Jersey on September 11, 2024.

This law amends the existing Financial Services (Disclosure and Provision of Information) (Jersey) Law 2020.

Background and purpose

1. The Draft Financial Services (Disclosure and Provision of Information) (Jersey) Amendment Law 202- (the “Draft Law”) proposes an amendment to the Financial Services (Disclosure and Provision of Information) (Jersey) Law 2020 (the “DPI Law”) to provide for persons who are obliged to perform customer due diligence (“CDD”), under the Money Laundering (Jersey) Order 2008 (“MLO”), to access beneficial ownership information held by the Jersey Financial Services Commission (“JFSC”) under the DPI Law.
2. The proposition is made in pursuit of Jersey's commitment, made along with the other Crown Dependencies on 13 December 2023, to further enhance the transparency of its centralised register in line with developing international standards.

The proposal

1. The DPI Law is proposed to be amended to allow the JFSC to disclose beneficial ownership information maintained within the registry to persons obliged to perform CDD.
2. Persons gaining access under this provision will be “relevant persons” as defined under the MLO upon which obligations to perform CDD are placed. It is further recognised that when meeting their obligations to perform CDD, relevant persons may seek the services of an Anti-Money Laundering Service Provider, as defined in Article 9A of the MLO. The proposition, therefore, allows for representatives of the relevant person to access beneficial
3. Ownership information.
4. In recognition of the basis for which relevant persons and their representatives will be extended access to beneficial ownership information, the proposition limits the purposes for accessing the information to assisting the fulfilment of obligations under part 3 of the MLO, this essentially being the obligation to perform CDD.
5. For this purpose, it is considered that access to complete beneficial ownership information is necessary, but also consistent with existing MLO obligations, such that all beneficial ownership information as currently defined within Article 2 of the Financial Services (Disclosure and Provision of Information) (Jersey) Order 2020.
6. Recognising the sensitive nature of the information being disclosed, the proposition introduces both a prohibition and offence for using the information for purposes beyond fulfilling obligations set out in the MLO Further to this the existing Article 10 prohibition for wrongful disclosure of information obtained under the DPI Law will be amended to ensure it applies to the disclosure of information obtained under these new provisions.
7. The proposal will extend the JFSC's powers of compulsion, to demand information or interview, to persons accessing information under these new provisions. This is deemed necessary to allow the JFSC to ensure that information accessed from its registry is done so under DPI Law.
8. Separately, the proposition will amend Article 19 to correct inaccurate internal referencing. The Amendment Law is intended to come into effect seven days after registration.

Key Points of the Amendment:

1. Disclosure of Beneficial Owner Information:
   • The amendment allows the Jersey Financial Services Commission (JFSC) to disclose beneficial owner information to financial services businesses. This is intended to assist these businesses in fulfilling their customer due diligence obligations under the Money Laundering (Jersey) Order 2008¹.
2. New Articles Inserted:
   • Articles 8A to 8C have been added to the law. These articles define key terms and outline the process for requesting and using beneficial owner information¹.
3. Alignment with International Standards:
   • The amendment aligns Jersey's regulations with international standards, enhancing transparency and compliance with global anti-money laundering (AML) practices².
4. Operational Efficiency:
   • The amendment aims to streamline the due diligence process for financial services businesses by providing access to accurate beneficial owner information, making it more efficient and effective².

IMPACT ON FINANCIAL SERVICES BUSINESSES:

1. Enhanced Compliance: Businesses can better comply with AML regulations, reducing the risk of financial crimes.
2. Improved Efficiency: Access to beneficial owner information can make the due diligence process quicker and more reliable.
3. Reputation: Aligning with international standards can enhance Jersey's reputation as a well-regulated financial centre.

SOURCE:  

• JerseyLaw https://www.jerseylaw.je/laws/pending/Pages/FinancialServices%28DisclosureandProvisionofInformation%29AmendmentLaw202-_ADOPTED.aspx
• States Assembly https://statesassembly.gov.je/AssemblyPropositions/2024/P.49-2024.pdf
• Financial Services (Disclosure and Provision of Information) (Jersey .... https://www.jerseylaw.je/laws/pending/Pages/FinancialServices%28DisclosureandProvisionofInformation%29AmendmentLaw202-_ADOPTED.aspx.
• Draft Financial Services (Disclosure and Provision of Information .... https://statesassembly.gov.je/AssemblyPropositions/2024/P.49-2024.pdf.
• Draft Financial Services (Disclosure and Provision of Information .... https://www.gov.je/sitecollectiondocuments/Industry%20and%20finance/L%20Draft%20Financial%20Services%20%28Disclosure%20and%20Provision%20of%20Information%29%20Amendment%20Law%20202-.pdf.

A LAW to allow the Commission to disclose beneficial owner information to assist financial services businesses with customer due diligence obligations under the Money Laundering (Jersey) Order 2008.

https://www.jerseylaw.je/laws/pending/Pages/FinancialServices(DisclosureandProvisionofInformation)AmendmentLaw202-_ADOPTED.aspx