PRESS RELEASE 26 July
2007
At its meeting on 19 July 2007, the States of Jersey passed
legislation to regulate money service businesses - those in
the business of a bureau de change, providing cheque cashing
facilities or engaging in money transmission services –
under the Financial Services (Jersey) Law 1998 (the “Financial
Services Law”).
The previous absence of such a regulatory regime for money
service business placed the Island at variance with international
standards issued by the Financial Action Task Force on Money
Laundering (“FATF”). The aim
of the legislation is to provide a mechanism for the oversight
of money service businesses that will meet international standards
but in a way that will avoid placing undue bureaucracy on
Industry and unrealistic demands on the Commission’s
resources.
The legislation will result in the disclosure to the Commission
of the identity of all persons who carry on money service
business. All money service businesses will become subject
to oversight (to varying degrees), as required by FATF recommendations.
In the case of persons with turnover in excess of a prescribed
threshold of £300,000, this oversight will involve a
pre-authorisation “fit and proper” assessment
and proactive ongoing supervision by the Commission. Such
persons will also be subject to the Financial Services Law
in its entirety and will be expected to adhere to the Codes
of Practice issued by the Commission for the purpose of establishing
sound principles for the conduct of money service business.
In the case of other persons whose turnover falls below the
prescribed threshold, oversight will involve the notification
to the Commission of the carrying on of money service business
and the use, by the Commission, of investigatory powers as
and when needed.
The combined effect of these requirements on most persons
carrying on, or proposing to carry on, money service business
is expected to be minimal. This is because the £300,000
turnover limit should result in only the largest providers
of money service business in Jersey having to seek the authorisation
of the Commission to carry on money service business. Consequently,
in the majority of cases, a person will be able to lawfully
carry on money service business after simply notifying the
Commission of its intention to do so, although it will be
required to keep records sufficient to determine that its
turnover is below the prescribed threshold.
A six-month period has been set from 26 July 2007 in which
to provide the Commission with a notification or an application
as appropriate. The legislation contains transitional provisions
so that persons who have made an application by 26 January
2008 (the closing date for applications) may lawfully continue
such business pending consideration of their application by
the Commission.
The oversight regime provided for by the legislation will
be funded by fees levied by the Commission on persons who
will be required to register under the Financial Services
Law to carry on money service business. Note that persons
who benefit from the turnover exemption and who are simply
required to notify the Commission that they intend to carry
on money service business will not be charged any fee.
- Ends -
For further information please contact: -
Andrew Le Brun
Director, International & Policy
Jersey Financial Services Commission
Tel: + 44 (0) 1534 822065
Fax: + 44 (0) 1534 822001
Email: a.lebrun@jerseyfsc.org
Notes to Editors.
1. Money service business has been brought within the scope
of the Financial Services Law through the passing by the States
of the Financial Services (Amendment of Law) (Jersey) Regulations
2007. At the same time, the Financial Services (Money Service
Business (Exemptions)) (Jersey) Order 2007 (the “Exemptions
Order”) was made by the Minister for Economic Development
to provide for exemptions based on type of business and size
of turnover.
2. More detail on the prescribed threshold for turnover can
be found in Article 4 of the Exemptions Order.
3. Fees for money service business have been set by the Financial
Services (Money Service Business (Registration and Fees))(Jersey)
Order 2007. In summary, the application fee for money service
businesses above the prescribed turnover threshold will be
£1,000 for the remainder of this year (£2,000
if application is made January to June in a calendar year).
Subsequent annual fees will be £2,000.
4. The Commission has set up a new area for money service
business on its website, which can be accessed from the home
page or directly at
Money Service Business
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