JFSC Q2 Registry Supervision Inspection Programme feedback – including GOOD AND BAD observations.

JFSC Q2 Registry Supervision Inspection Programme feedback paper provides feedback on the 2024 visit programme. It gives examples of good practice identified during the inspections and face-to-face interviews.

OBJECTIVE

1. A core focus of the JFSC transparency regime is to ensure that basic beneficial ownership and controller information is adequate, accurate, and up-to-date and can be made available to competent authorities on a timely basis.
2. The JFSC Registry examination officers meet with relevant individuals and inspect documentation about the entity and the significant persons.
3. The JFSC uses this information to confirm that the data recorded in the Registry database is accurate.

BAD FINDINGS IDENTIFIED.

1. Difficulties associated with recording joint ownership of shares correctly.
2. Lack of understanding of the three-tier test
3. Failure to disclose the individuals who control a corporate trustee if not JFSC-regulated.
4. Structure charts that need to clearly outline the ownership structure or provide sufficient details about the individuals or entities with significant ownership interests and control.
5. Inadequate records and documentation related to address and identity verification, which includes outdated due diligence documentation.
6. Inadequate identification of executors when a beneficial owner, controller or significant person is deceased.
7. Statutory registers containing inaccurate or outdated information.

GOOD PRACTICE HAS BEEN IDENTIFIED.

1. Findings show no systemic issues of concern, and most discrepancies are minor.
2. Entities who keep up-to-date due diligence documentation with the Registry tend to file the correct identification data.
3. Entities who are more proactive in updating their registers also maintain accurate data in the Registry’s records.
4. Trust or Company Service Providers that maintain comprehensive documentation of trust structures, ownership, and control information tend to have fewer findings.
5. Using the myParties features in the myRegistry platform, which ensures users only have to enter the details concerning associated parties once

REGISTRY SUPERVISION CRITERIA DURING 2024 WILL BE CONCENTRATING ON:

1. › High-risk indicators
2. › Politically exposed persons

THE JFSC WILL ALSO CONTINUE TO FOCUS ON ENTITIES WHICH DO NOT HAVE A TCSP CONNECTION, IN PARTICULAR:

1. › Multiple non-TCSP connected entities using the same registered office address.
2. › Entities for which the location or number of beneficial owners/members/significant persons do not      appear to fit with the nature of the activity.
3. › Where the same non-TCSP nominated person is providing services to a high number of entities.
4. › Entities previously subject to queries which may have triggered a higher risk profile.
5. › Previous history of late/non-compliance with statutory obligations
6. › Entities with directors who act as directors on several other entities.
7. >Public entities to ensure compliance regarding shareholders, directors, filings, and audited annual reports/accounts.

PROSECUTE

Where breaches have occurred concerning any law, the Registrar may refer the case to the Attorney General for a decision on whether to prosecute

INSPECTION PROGRAMME 2024 COLLABORATION WITH JFSC EXAMINATIONS:

1. The Registry Supervision team will collaborate with the JFSC Supervision division to hold examinations and inspections concurrently.
2. The JFSC Supervision manager will offer the TCSP the option of carrying out the inspections jointly or separately.
3. Registry Supervision will select 100 entities linked to the TCSP for inspection.
4. The inspection timeframe will vary depending on the number of entities selected. The JFSC will provide TCSPs the option of either our Registry Supervision team attending their offices in person or the TCSP sending the documentation to us for review electronically.
5. Depending on the duration of the inspection, three face-to-face meetings will be held: an opening meeting, a mid-week meeting, and a close-out meeting. The Registry Supervision team encourages feedback from entities following the inspection.

READ THE JFSC REGISTRY SUPERVISION PROGRAMME Q2 2024 FEEDBACK PAPER.

https://www.jerseyfsc.org/media/7808/registry-supervision-inspection-programme-q2-2024.pdf

The JFSC encourages boards, senior management, and owner-operators to consider this report's findings and conclusions.

SOURCE

https://www.jerseyfsc.org/news-and-events/read-The JFSC-q2-registry-supervision-inspection-programme-feedback/