Introduction
Further to a recent update, in which the Government, in consultation with the Jersey Financial Services Commission ("JFSC"), announced its intention to make legislative changes to the anti-money laundering, countering the financing of terrorism and proliferation ("AML/CFT/CPF") obligations of Specified Directors, the Money Laundering (Amendment No. 13) (Jersey) Order 2023 (the "Order") has now been published.
The order
Overview
The Order amends the Money Laundering (Jersey) Order 2008 (the "2008 Order") by inserting an Article dis-applying a number of AML/CFT/CPF obligations arising under the 2008 Order for Specified Directors, for a period of 12 months (from 1 October 2023 to 30 September 2024 - the "Specified Period").
Application
A "SpecifiedDirector" for the purpose of this Article means a director now required to register as a Schedule 2 Business under the Proceeds of Crime (Supervisory Bodies) (Jersey) Law 2008, as a result of the expansion of Schedule 2 to the Proceeds of Crime (Jersey) Law 1999 ("POCL") on 30 January 2023.
The disapplication of obligations shall not apply to directors already registered under the Financial Services (Jersey) Law 1998.
Dis-applied obligations
The AML/CFT/CPF obligations that are dis-applied are as follows:
|
Article 7 |
Obligation to appoint an individual as a money laundering compliance officer ("MLCO"). |
|
Article 8 |
Obligation to appoint an individual as a money laundering reporting officer ("MLRO"). |
|
Article 9 |
Optional appointment of a designated person to assist the MLRO (where relevant). |
|
Article 9A |
Optional appointment of an anti-money laundering services provider ("AMLSP") (where relevant). |
|
Article 11 |
Obligation to maintain appropriate and consistent policies and procedures relating to: - customer due diligence measures; - reporting in accordance with the provisions in POCL and the Terrorism (Jersey) Law 2002 mentioned in Article 21(6); - record-keeping; - screening of employees; - internal control; - risk assessment and management; and - the monitoring and management of compliance with, and the internal communication of, such policies and procedures. |
|
Article 11A |
Obligation on a financial group to maintain a programme to prevent and detect money laundering (where relevant). |
In addition, certain exemptions arising under Articles 10 and 12 of the 2008 Order are not applicable to Specified Directors for the Specified Period.
Next steps
The Order comes into effect the day after the new Schedule 2 Business registration requirements come into force for Specified Directors (30 September 2023).
The introduction of the Order will be a welcome development to Specified Directors; however, it must be borne in mind that not all AML/CFT/CPF obligations are dis-applied for the Specified Period, and the disapplication of these obligations is for a limited 12 month period only.
Private Trust Companies now also required to register as a Schedule 2 Business under POCL are likewise subject to the registration deadline of 30 September 2023. The Government is currently consulting with the JFSC as to whether further amendments are required to the AML/CFT/CPF regime concerning Private Trust Companies, and we expect further information on this consultation in August 2023.
This ongoing Government consultation with the JFSC will be of particular interest to Private Trust Companies now caught within the scope of Schedule 2 Business, and our dedicated regulatory and risk advisory team will provide further updates as this progresses.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
