The Jersey Government has issued an update for directors on anti-money laundering and countering the financing of terrorism which has been welcomed by Geoff Cook, chair of Mourant Consulting.
In a statement on 3 August, the island's government said that in consultation with the Jersey Financial Services Commission (JFSC), it "has decided to make further legislative changes as part of the ongoing supervisory implementation of the Proceeds of Crime (Amendment No. 6) (Jersey) Law 2022 ("Amendment No. 6") and following the extension of the initial registration deadline for certain businesses including Directors, from 30 June to 30 September 2023.
"This will clarify certain ongoing anti-money laundering and countering the financing of terrorism requirements (AML/CFT) and support the industry with efficient implementation.
"These changes are designed to ensure the regime is implemented across the relevant parties in a proportionate, effective, and risk-based manner, whilst adhering to international standards."
In early reaction on LinkedIn, Geoff Cook said: "Some welcome news on Sch 2 directors no doubt reflecting the significant feedback on the new regime. It was duplicative and burdensome and a registration only scheme is a much more sensible approach that will still meet FATF requirements. Credit to the Government of Jersey and the JFSC for being willing to listen."
The Assistant Chief Minister with responsibility for Financial Services, Deputy Elaine Millar, intends to make an order concerning the ongoing obligations of directors (acting outside of employment) required to register as a Schedule 2 business.
The Assistant Chief Minister will disapply certain common AML/CFT obligations as not relevant to persons acting as Directors (acting outside of employment).
These were brought newly into scope by Amendment No. 6 for Directors (known as "Previously Exempt Directors"). Examples include the requirements to undertake risk assessments, maintain policies and procedures, and appoint a money-laundering reporting officer and a separate money�laundering compliance officer.
This order will be made in due course and will come into effect on 30 September 2023, the day before the regime comes into force for Directors. The disapplication of obligations will apply for 12 months and does not apply to Directors already registered under the Financial Services (Jersey) Law 1998.
The government further said it is currently consulting with the JFSC as to whether further amendments are required to the AML/CFT regime concerning Private Trust Companies, to achieve an effective implementation of Amendment No. 6.
Further information on this will be made available in early August 2023.
