JERSEY VASP National Risk Assessment 2024

THE 2022 JERSEY VASP National Risk Assessment (NRA) has been updated in 2024.

Overview

One area of financial services, defined by the Financial Action Task Force but not yet a major part of the Jersey industry, is the virtual asset service providers (VASPs). 

Anyone undertaking a VASP activity in Jersey is subject to the full AML/CFT/CPF regulatory framework, including registration with the JFSC. 

The registration process began in 2016 for businesses offering.

• Exchange services between virtual assets (VA) and
• Fiat currencies (virtual currency exchange businesses (VCEBs))

And has subsequently been extended to all VASPs.  

HOW MANY VASPS

The profile of Jersey VASPs has seen several changes, but the absolute number of registered persons has remained small:

• From 2022 to early 2024, the sector grew from three registered persons to ELEVEN,

In line with recommendations from the Financial Action Task Force and to support the adoption of the extended Wire Transfer Regulations (Travel Rule), the JFSC has published a list of registered virtual asset service providers on our website. The list can be found here: VASP entities — Jersey Financial Services Commission (jerseyfsc.org)

• https://www.jerseyfsc.org/industry/vasp-entities/?search=

​2024 NRA Key findings

1. Overall, the risk posed by the sector is as expected, with the ML/TF/PF threat and inherent vulnerability relating to VA and VASP activity in Jersey assessed as Medium-High. 
2. The existing mitigation of ML/TF/PF relating to VA and VASP activity in Jersey is assessed as Medium. 
3. While this falls within the expectations formed in light of the overview, the volatility and rapid evolution of the sector means that agency, and industry, knowledge of the sector as it evolves, and as the vulnerabilities and threats also evolve, needs to be maintained.

​NRA Next steps

1. Following this risk assessment, several residual risks have been identified, along with actions that will contribute to a better understanding of risks posed by VA activity in Jersey, enabling more oversight and control. 
2. These recommended actions are supported by the VASP working group.
3. Lead and supporting competent authorities will be identified. Where appropriate, the actions will be added to the National Action Plan and taken forward through the National Financial Crime Policy and Strategy Cooperation and Coordination Structure.

2024

Virtual Asset Service Providers National Risk Assessment of Money Laundering, Terrorist Financing, and Proliferation Financing

• https://www.gov.je/SiteCollectionDocuments/Industry and finance/R Virtual Assets Service Providers National Risk Assessment Update May 2024.pdf

2022

VASP risk overview was completed in 2022,   

• https://www.gov.je/Industry/Finance/FinancialCrime/NationalRiskAssesmnents/Pages/NationalRiskAssessmentVASPs.aspx

SOURCE

https://www.gov.je/Industry/Finance/FinancialCrime/NationalRiskAssesmnents/Pages/VASPNationalRiskAssessment.aspx