PRESS RELEASE 17 November 2011
CONSULTATION ON CHANGES TO CUSTOMER DUE DILIGENCE MEASURES
Today, the Jersey Financial Services Commission (the “Commission”) has issued a Consultation Paper on proposals to amend some specific provisions in the Money Laundering (Jersey) Order 2008 (the “Money Laundering Order”) and AML/CFT Handbook for regulated financial services business (the “AML/CFT Handbook”) that deal with customer due diligence measures.
The Paper has been published ahead of a wider review of the basis for, and scope of, customer due diligence concessions in the Money Laundering Order that will take account of the imminent revision to international standards set by the Financial Action Task Force.
Amongst other things, proposals in the Paper will:
- Clarify the additional customer due diligence measures that must be taken when a relationship with a customer is established remotely - where the customer is not seen - and money laundering and terrorist financing risk is considered to be higher than the norm.
- Provide additional guidance on identifying countries which may be considered to present a higher risk of money laundering or terrorist financing.
- Specify some additional due diligence measures to be applied where a customer has a connection to Iran or North Korea, and where a customer is considered to present a higher risk as a result of a connection to Bolivia, Burma (Myanmar) Cuba, Ethiopia, Kenya, Nigeria, São Tomé & Príncipe, Sri Lanka, Syria and Turkey.
- Extend the circumstances in which it may be appropriate to simplify customer due diligence measures because the risk of money laundering or terrorist financing occurring is considered to be less for a particular customer, product or service.
The Consultation Paper and links to proposed revisions to sections 3 and 4 of the AML/CFT Handbook can be viewed on the Commission’s website by clicking here. Hard copies of the Consultation Paper are available upon request.
- Ends -
For further information on this press release please contact: -
Andrew Le Brun - Director, International & Policy
Jersey Financial Services Commission
Tel: + 44 (0) 1534 822065
Fax: + 44 (0) 1534 822002
NOTES TO EDITORS
The Commission is responsible for the regulation, supervision and development of the financial services industry in Jersey for deposit-taking, collective investment funds, fund services business, insurance business, general insurance mediation business, investment business, money service business, and trust company business (hereafter referred to as “regulated financial services business”). It is also responsible for overseeing compliance with legislation to counter money laundering and the financing of terrorism.
The Money Laundering Order applies to all persons carrying on a financial services business in Jersey or through a Jersey company. The term “financial services business” is defined in Schedule 2 of the Proceeds of Crime (Jersey) Law 1999, and includes regulated financial services business and some activities of law firms, accountants and estate agents.
In addition to the AML/CFT Handbook for regulated financial services business, the Commission also publishes Handbooks for the accountancy sector, the legal sector, and estate agents and high value dealers. These Handbooks will be revised at the same time as the AML/CFT Handbook for regulated financial services business.
The meaning of the term “customer due diligence measures” is set out in Article 3 of the Money Laundering Order. It includes taking steps to collect information on a customer and to verify that the customer is who he or she claims to be.