PRESS RELEASE 23 November
2006
Consultation on Draft Legislation
to effect the oversight of Money Service Businesses
(Bureaux de change, money transmitters and cheque cashers)
The Commission has today re-commenced a public consultation
exercise on draft legislation to introduce an oversight regime
for money service businesses (bureaux de change, money transmitters
and cheque cashers).
Whilst money service businesses are already required by the
Money Laundering (Jersey) Order 1999 (“Money
Laundering Order”) to have systems and training
to forestall and prevent money laundering, there is no body
responsible for ensuring that such businesses implement the
requirements of the Money Laundering Order effectively.
The absence of such an oversight regime puts the Island at
variance with international standards issued by the Financial
Action Task Force on Money Laundering (“FATF”).
This deficiency was noted by the International Monetary Fund
(“IMF”) in its 2003 assessment
on the supervision and regulation of the financial sector
in Jersey. The Island’s compliance with the FATF’s
recommendations on (amongst other things) the oversight of
money service business will be re-assessed by the IMF in early
2008.
The aim of the legislative proposals described in the consultation
paper is to provide a mechanism for the oversight of money
service businesses in line with international standards.
Those persons carrying on the following activities will be
affected to some extent by the proposed legislation:
- Foreign currency exchange. This will include post offices,
travel agents, and hotels.
- Money transmission (or any representation of money, such
as travellers’ cheques). This will include banks and
those offering money transfer services, including some issuers
of electronic money.
- Third party cheque cashing. This will include shops that,
by arrangement with a bank, cash cheques made payable to
customers, e.g. cashing pay cheques.
The Commission’s proposals do not cover the following
activities: accepting payment for goods and services and tendering
change in the same or a different currency, nor “cash-back”
services offered by retailers.
The Commission’s intention is that only the largest
providers of money service business will have to seek the
prior authorisation of the Commission to carry on money service
business. To achieve this, the Commission is proposing an
exemption that will allow a person with money service business
turnover (see footnote 1) at or below a prescribed
amount (currently a figure of £50,000 is suggested in
the consultation paper) to lawfully carry on money service
business after simply notifying the Commission of its intention
to do so.
The consultation paper can be viewed on the Commission’s
website www.jerseyfsc.org
and paper copies obtained from the Commission’s reception
area or the Jersey Library.
The Commission would welcome input from interested parties.
Responses should be submitted by 1 February 2007.
- Ends -
For further information, please contact:
Andrew Le Brun
Director – International & Policy Division
Jersey Financial Services Commission
Tel: + 44 (0) 1534 822065
Fax: + 44 (0) 1534 82201
Email: a.lebrun@jerseyfsc.org
1 Money services business
turnover will be defined as the cumulative total during a
financial
period of all or any of the following:
• foreign currency bought or sold
by a person who carries on the business of a bureau de change;
• funds transmitted or received by
a person who carries on the business of transmitting or
receiving funds by wire or other electronic means, or money
transmission services;
• cheques cashed by a person who carries
on the business of providing cheque cashing services,
measured in sterling in accordance with generally
accepted accounting principles. |
