Jersey AML….CHANGES KEEP ON COMING

Further to an earlier AML update about TCB/FSBs and the schedule 2 paragraph 7[1] matter the JFSC has issued an update about the next AML updates for 2022, as follows:-

JFSC February 2022 feedback on consultation with Government of Jersey on anti-money laundering exemptions

On 17^th December 2021, the JFSC launched a joint consultation with the Government of Jersey to more closely align Jersey’s AML/CFT scope exemptions regime with International Standards.

• 17 December 2021 = https://www.jerseyfsc.org/news-and-events/joint-consultation-with-government-of-jersey-on-anti-money-laundering-exemptions/

Feedback

The approach outlined in the JFSC consultation was broadly supported and it included:-

• Applying AML/CFT obligations separately from those in the JFSC conduct and prudential regimes.

Several respondents raised queries and concerns and helpfully provided examples of how certain aspects of the proposals would affect their businesses.

An important theme that came out of the feedback was concern that individuals undertaking activities on their own account might be captured by the proposals.

The JFSC say this is not the case, so for example, the following would not be undertaking activity “by way of business” so would not be caught by the proposals

• Someone who deals in their own personal investments, or
• A local person who is director of a single company.

Responses to the consultation are provided in the JFSC feedback published today by the Government of Jersey.

• February 2022 = https://www.gov.je/SiteCollectionDocuments/Industry%20and%20finance/Feedback%20on%20AMLCFT%20scope%20exemptions.pdf

Outcome of consultation

Taking account of the feedback received, the JFSC have amended the draft legislation which has been lodged au Greffe for scrutiny, then debate by the States Assembly.

The debate is anticipated to take place in late March.

Next steps

The work undertaken to date forms phase 1 of the overall process that is needed to bring Jersey’s AML/CFT scope exemptions in line with the international standards set by the Financial Action Task Force (the FATF).

Phase 2 of the overall process will commence this month and the JFSC plan is to continue working with the participants from the phase 1 working group, the respondents to the consultation, and any other interested parties.

Phase 2 work will include:

• Utilising the upcoming National Risk Assessment of Legal Persons and Arrangements, to determine whether there is a clear justification for exemptions
• Developing comprehensive guidance and guidelines for Industry
• Identifying and communicating with all businesses affected by the proposals
• Providing certainty on the transitional period, registration and notification process, and fee arrangements
• Exploring the creation of a new class of financial service business activity for the provision of AML/CFT services to client entities

Read the JFSC UPDATE HERE:-

https://www.jerseyfsc.org/news-and-events/feedback-on-consultation-with-government-of-jersey-on-anti-money-laundering-exemptions/