JERSEY RULES FOR FORMULATING A SUPERVISED FIRM’S AML/CTF/CPF POLICIES AND PROCEDURES

(The following statements are all sourced from the JFSC Handbook)

1. To demonstrate compliance, supervised persons must, when formulating policies and procedures, MUST:-
1. Pay close attention to the primary sections of the JFSC Handbook (sections 1-10) and the sector-specific sections (Sections 11-18) relevant to their business type.
2. The JFSC Handbook:-
1. Is a foundational guide (a minimum), not an exhaustive list, for establishing systems and controls to combat “money laundering, terrorism financing, and proliferation financing” (financial crime).
2. Will be considered by courts when evaluating a supervised individual’s conduct, assessing whether they acted reasonably, honestly, and appropriately and took all necessary steps to exercise due diligence to avoid committing an offence.
3. The JFSC Handbook is made up of the following PRIMARY SECTIONS that the JFSC says it is vital to adhere to:-
1. STATUTORY REQUIREMENTS
2. AML/CFT/CPF CODES OF PRACTICE,  
3. GUIDANCE NOTES
4. The AML/CFT/CPF CODES OF PRACTICE encompass detailed explanations of how to meet STATUTORY OBLIGATIONS and various elements necessary for a firm's corporate governance structures/framework.
5. The GUIDANCE NOTES provide strategies for meeting the mandatory statutory requirements and AML/CFT/CPF CODES OF PRACTICE and should always be read alongside them.
6. Concerning the provisions and application of the above, the JFSC handbook uses the terms "MUST" and “MAY”:-
1. MUST indicate the mandatory provisions and application of the STATUTORY OBLIGATIONS and AML/CFT/CPF CODES OF PRACTICE
2. In contrast, the GUIDANCE NOTES use the term "MAY", which offers potential ways to satisfy STATUTORY OBLIGATIONS and AML/CFT/CPF CODES OF PRACTICE requirements while allowing alternative compliance methods.
7. The JFSC says that thoughtful application of the GUIDANCE NOTES will indicate compliance with all the statutory and AML/CFT/CPF requirements. However, a supervised person may implement alternative measures BEYOND those outlined in the GUIDANCE NOTES, provided they can demonstrate compliance with statutory requirements and AML/CFT/CPF CODES OF PRACTICE. The JFSC says this flexibility allows supervised individuals to tailor their approach based on their specific business circumstances, products, services, transactions, and/or customer profiles.
8. In support of the above PRIMARY SECTIONS, the JFSC says in its Compliance monitoring guidance that a firm's Compliance Functions should Identify ALL relevant legislative and regulatory requirements.
9. When writing and or maintaining policy and procedures Jersey, supervised individuals should:
1. Ensure they apply the statutory provision by using the JFSC handbook CODES and GUIDANCE
2. Adopt a suitable risk-based approach to the GUIDANCE and
3. Continuously evaluate what additional measures may be necessary to safeguard against exploiting their products and services by those attempting to engage in financial crime.

End

(The above statements are all sourced from the JFSC Handbook - https://www.jerseyfsc.org/media/7584/section-2-clean-20240507.pdf)

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