Press Release - 10 May 2006
Consultation Paper on the draft Handbook for the Prevention
and Detection of Money Laundering and Terrorist Financing.
The Jersey Financial Services Commission today published a consultation
paper on the draft Money Laundering (Jersey) Order 200- and the
draft Handbook for the Prevention and Detection of Money Laundering
and Terrorist Financing. The paper can be found on the Commission
website, www.jerseyfsc.org.
The Commission will also be holding seminars as part of the process
to facilitate consultation with interested parties. Further information
on the seminars is available on the Commission’s website,
or by telephoning (01534) 629800.
The programme of events is as follows:
Part One: 15, 16 and 17 May 2006 – Seminars
presenting an overview of the proposals
Part Two: Week beginning 19 June 2006 – Discussion
fora focusing on key proposals
Part Three: 14 August 2006 – Consultation
response period closes
Part Four: December 2006 and January 2007 – Training
on the new requirements
The purpose of the consultation paper is to convey proposals to
update Jersey’s measures to combat money laundering and terrorist
financing so that these are consistent with certain key elements
of the revised Financial Action Task Force (“FATF”)
Recommendations on Money Laundering and Terrorist Financing. The
proposals are contained within two documents, a draft Money Laundering
(Jersey) Order 200- (“draft Money Laundering Order”)
to replace the existing Money Laundering (Jersey) Order 1999 and
a draft Handbook for the Prevention and Detection of Money Laundering
and Terrorist Financing (“draft Handbook”), to replace
the existing Guidance Notes for the Finance Sector.
The proposals are consistent with Jersey’s commitment to
the implementation of international standards to combat money laundering
and terrorist financing.
The draft Money Laundering Order and Handbook propose a number
of important changes. In particular:
- A risk-based approach to customer due diligence is set out,
that permits reduced or simplified measures in the case of lower
risk relationships, and requires enhanced customer due diligence
in the case of higher risk relationships.
- Much more emphasis is placed on customer due diligence measures
other than identification and verification of identity, and,
in particular, on ongoing monitoring of unusual, complex, and
higher risk activity and transactions.
- More customer friendly ways of verifying the identity of applicants
for business or customers, including scope for greater reliance
on a single document to verify identity in lower risk circumstances,
for example, a passport.
- Measures to guard against the financial exclusion of Jersey
residents have been clarified. In particular, in the case of
a lower risk minor, whose parent or guardian is unable to provide
standard documentation to verify the minor’s identity,
identity may be verified through use of the minor’s birth
certificate.
- The responsibilities of senior management in preventing and
detecting money laundering are also emphasised as part of a section
addressing corporate governance.
In addition, the consultation paper highlights that the FATF Recommendations
require the extension of measures to combat money laundering
and terrorist financing to non-financial businesses and professions,
and to include certain activities conducted by lawyers, accountants
and estate agents, and the sale of high value goods for cash.
The paper considers how Jersey might address this requirement.
David Carse, Director General of the Commission, said:
“These proposals are intended to enable Jersey to meet its
international obligations, in line with the standards established
by the Financial Action Task Force, to combat money laundering
and terrorist financing. The proposals highlight the importance
of a risk based approach to combating money laundering and terrorist
financing, which is intended to focus resources on higher risk
customers, whilst at the same time easing the burden on other customers.”
- Ends -
Click below to view the consultation paper and associated
seminars:
Consultation
paper
Appendix A: Draft Money
Laundering (Jersey) Order 200-
Appendix B: Draft Handbook
for the Prevention and Detection of Money Laundering and Terrorist
Financing
Appendix C: List of representative
bodies who have been sent the consultation paper
Seminar
programme
For further information contact:
Andrew Le Brun
Director, International and Policy
Jersey Financial Services Commission
Telephone: +44 (0) 1534 822065
Facsimile: +44 (0) 1534 822001
Email: a.lebrun@jerseyfsc.org
Helen Holmes
Senior Manager, International and Policy
Jersey Financial Services Commission
Telephone: +44 (0) 1534 822104
Facsimile: +44 (0) 1534 822001
Email: h.holmes@jerseyfsc.org
Note for editors:
1. The Financial Action Task Force (the “FATF”) is
an inter-governmental body whose purpose is the development and
promotion of national and international standards to combat money
laundering and terrorist financing. The FATF has published 40 +
9 Recommendations in order to meet this objective. Further information
on the FATF and its 40 + 9 Recommendations are available on the
FATF website: www.fatf-gafi.org
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