PRESS RELEASE 14 December 2012
CHANGES TO BE MADE TO AML/CFT HANDBOOK
Today the Commission has published a Feedback Paper following consultation in 2011 and throughout 2012 on proposals to amend the Handbook for the Prevention and Detection of Money Laundering and the Financing of Terrorism for Financial Services Business (the " AML/CFT Handbook") and the Money Laundering (Jersey) Order 2008 (the "Money Laundering Order").
In a Consultation Paper published in late 2011, the Commission proposed:
- providing additional guidance on how to assess country risk;
- setting more prescriptive guidance on customer due diligence ("CDD") measures to be applied in the case of an assessment of higher country risk;
- updating "suitable certification" provisions – where a customer presents evidence of identity to a trusted third party rather than directly to a person that must carry out CDD measures (a "relevant person"); and
- updating a limited number of cases where a relevant person may carry out simplified CDD measures.
As explained in the Feedback Paper, respondents were broadly supportive of the proposals. However:
- many felt that proposals for prescriptive guidance on CDD measures to be applied in the case of higher country risk ran contrary to the principle of a risk-based approach; and
- in the case of a relationship between a relevant person and a trust, foundation or legal person, a number said that it should be possible for that relevant person to place reliance on evidence of identity obtained by a trust company that is regulated and supervised by the Commission (or similar supervisor).
These two areas of concern have been addressed in revisions to Sections 3 and 4 of the AML/CFT Handbook, which are attached as appendices to the Feedback Paper. Both revised sections will come into effect on 1 February 2013.
Those changes that are dependent on an amendment to the Money Laundering Order will take longer to bring into effect.
- Ends -
For further information please contact: -
Andrew Le Brun - Director, Office of the Director General
Jersey Financial Services Commission
Tel: + 44 (0) 1534 822065
Fax: + 44 (0) 1534 822003
NOTES TO EDITORS
The AML/CFT Handbook was first issued on 4 February 2008 and forms part of the defences against the laundering of criminal funds and terrorist financing.
Jersey’s defences in this area rely heavily on the vigilance and co-operation of the finance sector. Specific financial sector legislation (the Money Laundering (Jersey) Order 2008) is therefore also in place covering a person carrying on financial services business in or from within Jersey, and a Jersey body corporate carrying on financial services business anywhere in the world (a "relevant person").
Each relevant person in Jersey must recognise the role that it must play in protecting itself, and its employees, from involvement in money laundering and the financing of terrorism, and also in protecting the Island’s reputation of probity.
The Commission strongly believes that the key to the prevention and detection of money laundering and the financing of terrorism lies in the implementation of, and strict adherence to, effective systems and controls, including sound customer due diligence ("CDD") measures based on international standards. The AML/CFT Handbook therefore establishes standards in line with international standards issued by the Financial Action Task Force on Money Laundering.
The Commission is also mindful of the importance of financial services being generally available to all Jersey residents and, where necessary, the AML/CFT Handbook incorporates measures to guard against the financial exclusion of Jersey residents from financial services and products.