Post MONEYVAL JERSEY Ministerial Priorities and High-Level Action Plan [July 2024]

JERSEYGOV has announced a strategic review of the approach to regulation of the financial and professional services sector in Jersey, which will take place between 2024 and 2025.

In this regard, JERSEYGOV will manage the delivery of actions according to relevant legislation, and progress will be reviewed.

1. The vehicle of the Financial Crime Agencies Review Group (FCARG) and
2. The Financial Crime Political Steering Group (FCPSG)

JERSEYGOV, through the Minister for External Relations and Financial Services, has set several jurisdictional priorities relevant to financial services and financial crime prevention.

These priorities are grouped here by the leading financial crime agencies they relate to:-

1. JFSC
2. FIU
3. ECCU
4. JFCU

The following priorities have been communicated to the agencies, recognising the government's role in directing strategy and policy for Jersey while also respecting the operational and prosecutorial independence of financial crime agencies.

1. Post MONEYVAL Ministerial Priorities and High-Level Action Plan July 2024
2. https://www.gov.je/SiteCollectionDocuments/Industry%20and%20finance/R%20MONEYVAL%20High%20Level%20Action%20Plan.pdf

The priorities are also summarised below.

JFSC

1. In respect of the JFSC –
• Priority actions centre around reviewing its supervisory activity and strengthening its approach.
• Given that the strategic review will focus on the approach to regulating financial and professional services in Jersey, the JFSC will need to play an active role in it.
• The review will support a holistic approach to addressing the MONEYVAL findings.
2. The drivers for the review are fourfold:
   • The review will allow examination of:-
   1. The structure and accountability of the JFSC and
   2. How does the regulatory environment support the strategy for developing financial services in Jersey, recognising that the legislative framework has been built over many years and may need to be updated and more complex in parts?
   • The review provides a timely opportunity.
   1. To hold a conversation with the industry and all relevant stakeholders to look to understand these concerns and,
   2. If it is deemed appropriate, work to address any justified issues.
   • The approach to supervision by the JFSC and enforcement actions (particularly where serious breaches are identified) are notable findings.
   • The Review allows these to be addressed holistically.
• Creating the best regulatory environment possible for sustainable growth of financial services and ensuring Jersey remains competitive in an international marketplace.
• Different stakeholders have different views on the appropriateness of the current regulatory regime and the operation of regulation in Jersey, which has led to representations to JERSEYGOV and coverage in the local media.
• The MONEYVAL Report includes important actions relevant to supervision and preventative measures that Jersey needs to prioritise for action.
• Global regulatory models have evolved significantly since the creation of the JFSC, and countries worldwide are introducing new models while considering concerns around resources, the use of technology, avoiding duplication, and ease of doing business.
3. The review will be conducted by an external party/external parties but will be managed by JERSEYGOV.
• External parties will be appointed in accordance with the Government’s normal processes for commercial contracts.
4. The scope and terms of the review
• The scope will be confirmed over the remainder of 2024 in consultation with several stakeholders (including the JFSC).
• The terms of reference will specify that the Review should report to JERSEYGOV in 2025.

FIU JERSEY

1. Priority actions centre around policies, procedures, legislation and funding for the FIU to complete its transformation project (“Project Liberty”).
2. The Key area of focus will be the delivery of Project Liberty, which is contingent on policies, procedures, legislation, and funding being in place to allow the FIU to implement the actions from the report.
3. While the government's current financial position remains very challenging, the Minister commits to continuing to advocate for appropriate resource investment in FIU Jersey.

THE ECONOMIC CRIME AND CONFISCATION UNIT (ECCU)

1. Priority actions centre around delivering a reform programme to implement a series of recommendations already agreed upon by the Attorney General and the Government.
2. The reform programme will include the provision of new investigative powers and the establishment of an independent review process.
3. Additional work will also be undertaken to review and update legislative powers (including improvements to POCL and Civil Recovery) and
4. Continue the excellent work concerning international cooperation and asset sharing/ return.

THE JOINT FINANCIAL CRIME UNIT OF THE STATES OF JERSEY POLICE (JFCU)

1. Priorities will centre around the ongoing review of policies, procedures, legislation, and resources over time to ensure that they remain fit for purpose, particularly considering the role of the JFCU in preventing domestic financial crime with an impact on islanders.

CLOSE

1. JERSEYGOV is committed to ensuring that policies, procedures, and legislation are in place to allow agencies to deliver on their actions.
2. Resourcing needs will also be reviewed and considered as necessary, noting that the general financial environment for the public sector is currently challenging.

SOURCE

• https://www.gov.je/SiteCollectionDocuments/Industry%20and%20finance/R%20MONEYVAL%20High%20Level%20Action%20Plan.pdf