JFSC amends its 2022/2023 AML/CFT/CPF Handbook

On 23 December 2022, the JFSC published Amendments to the AML/CFT Handbook to show additions as follows:-

1. PROLIFERATION FINANCING,
2. EXPLANATORY GRAPHICS [BRA/3 tier test/reliance/SARS]
3. AMENDMENTS REGARDING DIGITAL ID SYSTEMS
4. HANDBOOK AMENDMENT TO REFLECT THE LIMITED LIABILITY COMPANIES (JERSEY) LAW 2018

See the Updated chapters of the AML/CFT/CPF Handbook. =

• https://www.jerseyfsc.org/industry/financial-crime/aml-cft-handbooks/consolidated-aml-cft-handbook/

FURTHER DETAILS ON THE ABOVE ARE BELOW  

Countering proliferation financing is now clearly referenced in the AML/CFT/CPF Handbook

1. Jersey must comply with a range of recommendations by the Financial Action Task Force (FATF). These recommendations cover money laundering, the financing of terrorism, and the financing of the proliferation of weapons of mass destruction. 
2. To better reflect Jersey's obligations, the JFSC has updated the full AML/CFT Handbook to make explicit reference to countering proliferation financing (CPF) whenever relevant. 
3. The JFSC has also added a new Section 8.8, guiding the reporting obligations set out in the Sanctions and Asset-Freezing (Jersey) Law 2019.
4. Updates to the Glossary reflect the abovementioned changes.
5. The Handbook is now the AML/CFT/CPF Handbook.

EXPLANATORY GRAPHICS

To make the Handbook easier to use, the JFSC has added five new graphics to explain certain further areas covered in the document:

• Section 2.3.1 – Example of how risk might be calculated in a Business Risk Assessment (BRA) and an Example of a BRA

• https://www.jerseyfsc.org/media/6258/section-2-corporate-governance.pdf

• Section 4.5.1 – Flowchart for the three-tier test (can also be applied to Sections 4.4.1, 4.4.3, 4.5.3 and 4.5.5 where the person being identified is not a natural person)

• https://www.jerseyfsc.org/media/6263/section-4-identification-measures-finding-out-identity-and-obtaining-evidence.pdf

• Section 5.1 – Comparison of reliance arrangements which are acceptable and those which are not

• https://www.jerseyfsc.org/media/6265/section-5-identification-measures-reliance-on-obliged-persons.pdf

• Section 8.2.3 – Difference between terms' knowledge', 'suspicion' and 'reasonable grounds for suspicion in the context of suspicious activity reporting

• https://www.jerseyfsc.org/media/6271/section-8-reporting-money-laundering-and-terrorist-financing-and-sanctions-reporting-obligations.pdf

SECTION 4 AMENDMENTS REGARDING DIGITAL ID SYSTEMS

1. On 30 November, the JFSC and the Government of Jersey published feedback on the 2022 consultation relating to the adoption of Digital ID Systems by supervised persons.
2. Part of this feedback committed us to update the AML/CFT/CPF Handbook taking into account some practical considerations and amendments to help supervised persons in the short term.
3. These quick changes have now been completed, and amended guidance is now available in sections
   • 3.5.2-4,
   • 4.5, and
   • 5.7.
4. Further work will be underway throughout 2023 to make additional revisions to Section 4 of the AML/CFT/CPF Handbook following this feedback.

UPDATES FOLLOWING CHANGES TO THE MONEY LAUNDERING ORDER

1. On 1 September 2022, the Limited Liability Companies (Jersey) Law 2018 came into force alongside two regulations.
2. This law required consequential amendments to a range of other Jersey legislation, including the Money Laundering (Jersey) Order 2008.
   • See Jersey's industry update on 1 September for more information.
     1. https://www.jerseyfsc.org/news-and-events/we-have-made-some-enhancements-to-myregistry-including-the-launch-of-the-new-limited-liability-company-register/
   • A Jersey, a limited liability company, has a separate legal personality but is not a corporate body.
   • To reflect these amendments, the JFSC has changed Sections 3, 4, 7, and 13.
     1. These changes are purely administrative.
     2. They do not add or amend any AML/CFT Codes of Practice.