PTC-FUNDS-others, it’s time to decode the “Three-Gateway Puzzle” before April 2026 Strikes!

Quick read

• On 8 December 2025, the Jersey Financial Services Commission (“JFSC”) published a consultation (“Consultation”) in relation to revising the JFSC’s ‘Guidelines on the interpretation of Article 36 of the Proceeds of Crime (Jersey) Law 1999’.
• Following the Consultation, the new proposed guidelines (“Draft Guidelines”) are intended to replace the current guidelines (“Existing Guidelines”) originally issued on 30 January 2023, becoming effective in April 2026.

Introduction

The three-gateway framework is a pivotal update to the Jersey Financial Services Commission's (JFSC) revised Guidelines on the interpretation of Article 36 of the Proceeds of Crime (Jersey) Law 1999 (POCL). The framework introduces a structured three-part test (Activity Gateway, 'As a Business' Gateway, and Jersey Nexus Gateway) to clarify Schedule 2 scope, addressing industry feedback on ambiguities in the 2023 guidelines.

Timeline

• The revisions followed a consultation from December 2025 to January 30, 2026:   
• The consultation was issued on December 8, 2025, and closed at 17:00 on January 30, 2026.
• https://www.jerseyfsc.org/industry/consultations/consultation-on-schedule-2-proposed-amendments-to-the-article-36-guidelines
• The consultation is now closed, with the JFSC reviewing responses—no further submissions are accepted.
• The JFSC plans to publish a feedback summary by April 1, 2026, which could include minor refinements based on responses. Still, the effective date remains April 30, 2026, unless explicitly altered in the final publication (expected in March or early April 2026).
• The April 1, 2026, date refers to the JFSC's planned publication of a feedback summary (not a new deadline for submissions). This allows time to incorporate any changes before the April 30 effective date. If significant feedback warrants adjustments (e.g., delays), the JFSC would announce them in the summary; however, current sources indicate no such plans. Monitor the JFSC website for the final guidelines.
• Effective from 30 April 2026: Correct and unchanged. The consultation document proposes this date for the revised guidelines to take effect.

The three-gateway framework

• Introduces a clear, step-by-step test to determine if a person or entity is conducting a "financial services business" under Schedule 2 of POCL.
• Triggers registration with the JFSC under the Proceeds of Crime (Supervisory Bodies) (Jersey) Law 2008 (SBL) and full adherence to Jersey's anti-money laundering, countering the financing of terrorism, and countering proliferation financing (AML/CFT/CPF) regime.
• Addresses ambiguities in prior guidance (from 2023), particularly around the "as a business" criterion, based on industry feedback. It promotes clarity, consistency, and alignment with FATF standards by emphasising the substance of activities over labels or structures.
• There's no retrospective application, but entities must reassess activities ongoingly: Accurate. The guidelines state they will not apply retrospectively, but entities should regularly reassess their status if activities or circumstances change, to ensure ongoing compliance.

The Three-Gateway Framework Explained

All three gateways must be satisfied for Schedule 2 obligations to apply, including customer due diligence, risk assessments, and record-keeping. The test looks at activities holistically, including ancillary elements, to prevent evasion.

1. Activity Gateway: Does the Activity Fall Within Schedule 2?

This step checks whether operations align with Schedule 2, Parts 1–4, which cover financial institutions (e.g., banking, lending), DNFBPs (e.g., trust services, real estate), virtual asset service providers (VASPs), and express trusts. Focus is on practical actions, not self-descriptions—e.g., fund management or securities issuance may qualify.

2. 'As a Business' Gateway: Is It Conducted 'As a Business'?

A two-limbed test: (i) On a business, professional, or commercial basis (e.g., with profit motive, fees, or marketing—even one transaction if commercial); and (ii) With a customer present (broadly any third party in a relationship or transaction, including formalised intra-group). This refines earlier ambiguity; e.g., informal family aid is out, but fee-based professional services are in.

3. Jersey Nexus Gateway: Is There a Jersey Connection?

Requires the business to be conducted in/from Jersey (broad factors like presence, marketing, or client base) or involve a Jersey entity (e.g., Jersey-incorporated company). Non-professional trustees are exempt from registration.

Fund-Related Clarifications

For funds (e.g., under Schedule 2 Paragraph 9), "participation" in securities issues demands an active role (e.g., underwriters). General partners may qualify under portfolio management or directorships. The framework anticipates COBO regime changes in April 2026.

Application to Private Trust Companies (PTCs)

Private Trust Companies (PTCs) are Jersey-incorporated companies that act as trustees for connected family trusts, often within single- or multi-family wealth structures to enhance control, privacy, and governance. Following the 2023 Schedule 2 recast, which aligned Jersey with FATF standards by removing exemptions, many PTCs fell within the scope of the "financial services business" if they conducted trust activities "as a business" (e.g., providing trustee services under Schedule 2, Part 2). The three-gateway framework refines this assessment, shifting from previous multi-factor ambiguity to a structured test, potentially excluding purely internal arrangements while capturing commercial ones.

• Activity Gateway: PTCs typically qualify if acting as trustees, enforcers, or protectors, as this aligns with trust company business (e.g., managing express trusts). Ancillary activities, such as governance under Jersey's Trusts or Companies Law, are considered holistically.
• 'As a Business' Gateway: The two-limbed test evaluates: (i) Business/professional/commercial basis—e.g., formalised with fees (even nominal), agreements, or profit motive; a single instance can qualify if commercial. (ii) Presence of a customer—broadly the settlor, beneficiaries, or family as third parties in a formalised relationship; aligned with the Money Laundering (Jersey) Order 2008 definition. The draft removes the prior blanket statement that all corporate trustees/PTCs act "as a business," enabling case-by-case analysis. Purely unpaid, internal single-family PTCs may lack a commercial basis or a customer nexus, potentially excluding them, whereas multi-family or fee-charging PTCs are likely in scope.
• Jersey Nexus Gateway: Applies if the PTC is Jersey-incorporated/managed or activities occur in/from Jersey. Non-professional (individual) trustees are exempt from SBL registration and fall under lighter POCL Article 36(1A) obligations, but corporate PTCs must register if the gateways are met.

Changes to the 2023 guidance reduce subjectivity, but uncertainties persist for family offices/PTCs (e.g., "customer" in single-family setups).

• The consultation seeks examples of corporate trustee scenarios that do not pass the test.
• If in scope, PTCs must register via myJFSC, appoint MLCO/MLRO (or AMLSP), conduct risk assessments, and comply with the Handbook—non-compliance risks, fines or enforcement.
• Reassess pre-April 2026; family offices using PTCs should consider restructuring if seeking exclusion.

Action Steps for Compliance

With the deadline approaching:

• Review Activities: Apply the framework to your operations; document conclusions.
• Register if Needed: Use myJFSC portal; regulated funds may notify instead.
• Update Policies: Align with the AML/CFT/CPF Handbook (updates May 31, 2026).
• Monitor Developments: Watch JFSC for final guidelines; consult experts if uncertain.

Critical Web Links for Jersey's Three-Gateway Framework (AML/CFT/CPF Updates)

• Based on the latest information as of February 16, 2026, here are the most critical web links related to the JFSC's revised Guidelines on Article 36 of POCL, focusing on the three-gateway framework effective April 30, 2026.
• These provide direct access to the proposals, drafts, and implications for funds, PTCs, and family offices.  

All Web Sources (Compiled List)

1. Clarifying Schedule 2: The JFSC's Proposals For Revision Of Guidance For Article 36 Of The Proceeds Of Crime Law | Appleby - https://www.applebyglobal.com/publications/clarifying-schedule-2-the-jfscs-proposals-for-revision-of-guidance-for-article-36-of-the-proceeds-of-crime-law
2. Consultation on Schedule 2: proposed amendments to the Article 36 guidelines - Jersey Financial Services Commission - https://www.jerseyfsc.org/industry/consultations/consultation-on-schedule-2-proposed-amendments-to-the-article-36-guidelines
3. Clarifying Schedule 2: The JFSC's Proposals For Revision Of Guidance For Article 36 Of The Proceeds Of Crime Law | Appleby - https://www.applebyglobal.com/publications/clarifying-schedule-2-the-jfscs-proposals-for-revision-of-guidance-for-article-36-of-the-proceeds-of-crime-law
4. Jersey Private Trust Companies and Foundations: Bringing Order to Your Ambitions - https://www.jerseyfinance.com/insights/jersey-private-trust-companies-and-foundations-bringing-order-to-your-ambitions
5. Consultation on Schedule 2: proposed amendments to the Article 36 guidelines - Jersey Financial Services Commission - https://www.jerseyfsc.org/media/mjihrbwp/consultation-on-schedule-2-proposed-amendments-to-the-article-36-guidelines.pdf
6. PTC update: clarification of application of NPTO | Walkers - JDSupra - https://www.jdsupra.com/legalnews/ptc-update-clarification-of-application-7617671
7. Jersey Private Trust Companies [PTC] “AS A BUSINESS” test is confirmed and must register - https://www.comsuregroup.com/news/jersey-private-trust-companies-ptc-as-a-business-test-is-confirmed-and-must-register
8. National Risk Assessment of Money Laundering - States Assembly - https://statesassembly.je/publications/assembly-reports/2020/r-107-2020
9. Jersey updates AML and proceeds of crime law for trustees and private trust companies - https://channeleye.media/jersey-updates-aml-and-proceeds-of-crime-law-for-trustees-and-private-trust-companies
10. Session 5 - JFL - JSCCA - https://jscca.org/uploads/documents/inline/pdf/session-5-jfl-compressed.pdf
11. https://www.hklaw.com/en/sitemap/insights - https://www.hklaw.com/en/sitemap/insights

These links focus on the core news and updates—check the JFSC site for the final guidelines expected.