Examination programme 2026

Introduction

As part of our ongoing supervision of businesses, we will continue our programme of thematic examinations.

We conduct thematic examinations in response to perceived, current, or emerging regulatory and financial crime risks. They involve firms from multiple sectors to assess compliance standards and understand associated risks.

We have selected themes which will assess compliance with financial crime and conduct obligations.  

The two 2026 themes are:

• exemptions from customer due diligence (CDD) requirements
• customer complaints

Firms selected for an examination will be contacted directly by their supervisor.

1    Exemptions from customer due diligence requirements

1.1    Rationale for this theme

Jersey’s 2024 MONEYVAL Mutual Evaluation Report identified that the use of exemptions for applying third‑party CDD under Article 17 of the Money Laundering Order is declining. However, MONEYVAL did identify that some firms applying exemptions do not always consider enough information to adequately assess the risks, resulting in exemptions being used outside the limited circumstances allowed under the Money Laundering Order.

Firms must also be satisfied that appropriate CDD measures have been applied to underlying customers or investors. However, during the mutual evaluation, some firms were unable to clearly explain how they assess the risks associated with these underlying customers.

In addition to MONEYVAL’s findings on Article 17 exemptions, our financial crime examinations continue to identify weaknesses in firms’ systems and controls relating to the use of both Article 17 and Article 18 exemptions from CDD requirements. Misapplying these exemptions increases the risk that firms, and the island, may be used to facilitate financial crime.

1.2    Your obligations

Under Part 3A (Articles 17B–D and Article 18) of the Money Laundering Order, and Section 7.13 of the AML/CFT/CPF Handbook (the Handbook), exemptions from CDD requirements may only be applied in strictly limited circumstances.

For all customers, including those where an exemption has been applied, you must:

• obtain information on the purpose or nature of the business relationship, or one-off transaction
• remain responsible for scrutinising transactions and activity, as well as ensuring the documentation and information you hold is kept up to date
• undertake a customer risk assessment to be able to demonstrate that the customer relationship or one-off transaction does not pose a higher risk of financial crime 

Article 17B-D exemptions

These articles provide exemptions from third-party identification requirements in specific circumstances. They allow a supervised person to not apply identification measures to third parties in certain scenarios, such as when the customer is a supervised person and when the risk is assessed to be low.

Article 18 exemptions

This article provides an exemption from identifying the customer and the person acting for the customer, verifying their authority to act, and understanding the ownership or control structure where the customer is not an individual and where the relationship or transaction falls into one of the following categories:

• the business relationship or one-off transaction relates to a pension, superannuation, employee benefit, share option or similar scheme
• the customer is a public authority
• the customer is a body corporate with listed securities
• the customer is a regulated person or carries on equivalent business

This exemption is strictly for the customer and does not extend to third parties. 
 
Exemptions under Article 17B-D and Article 18 cannot be used where:

• there is suspicion or a heightened risk of money laundering
• the customer is linked to jurisdictions non-compliant with Financial Action Task Force (FATF) standards or subject to FATF calls for enhanced CDD 

In addition to these pre-requisites, which apply to all exemptions, you are also required to do the following.

Article 17B – relevant customers providing certain regulated, investment or fund services business

You must record your reasons for applying this exemption and consider:

• the financial crime risk inherent in your customer’s business
• the higher risk of financial crime associated with your customer’s business in the event they fail to apply the relevant CDD requirements or keep the necessary records  

Article 17C - relevant customers involved in unregulated or non-public funds, trust company business or the legal profession

You must record your reasons for applying this exemption, and conclude that there is little risk of money laundering, and consider:

• the financial crime risk inherent in your customer’s business
• the higher risk of financial crime associated with your customer’s business in the event they fail to apply the relevant CDD requirements to the third party or keep the necessary records

Conditions for applying this exemption include obtaining adequate assurance in writing from your customer that it:

• has applied the relevant CDD requirements to the third party
• will provide you with the information it has obtained on request and without delay
• has kept adequate records of the evidence obtained
• undertakes periodic testing on the assurance provided

If your customer does not have, or has been unable to provide you with, copies of the information on the third party, you must apply identification measures on the third party. In addition, the AML/CFT/CPF Code of Practice set out in the Handbook requires you to assess the appropriateness of continuing to rely on this exemption for this customer for other third parties.

Article 18 - (specified circumstances where exemptions from applying CDD requirements can be applied to your customers)

You must record your reasons for applying this exemption, and consider:

• the financial crime risk inherent in your customer’s business
• the higher risk of financial crime associated with your customer’s business in the event they fail to apply the relevant CDD requirements to the third party or keep the necessary records

1.3    Key areas of focus for the examination

We will assess whether you can demonstrate compliance with the statutory obligations and regulatory requirements relating to the application of exemptions, including those relating to:

• pre-conditions for use – are the exemptions being applied only in the circumstances allowed by the Money Laundering Order (the Order)?
• ongoing requirements for permitted use – are you undertaking ongoing monitoring for all customers and the specific testing requirements prescribed by the Order?
• policies procedures – are your policies and procedures relating to the application of exemptions adequate and up to date?
• ongoing monitoring – are you scrutinising transactions and ensuring that customer information is kept up to date where the exemptions are used?
• reasons for applying exemptions – have you adequately captured and documented the rationale for using exemptions in line with the requirements in the Order?
• compliance monitoring – is the testing you are undertaking in relation to exemptions adequate?
• training – is adequate training being provided to staff on your procedures for applying exemptions?
• governance and oversight – are your governance and oversight arrangements adequate on the business’ use of exemptions?

2    Customer complaints

2.1    Rationale for this theme

We are conducting this thematic to understand how well firms in different sectors are treating their customers when complaints are raised. This will provide us with a good understanding of how effectively firms identify, manage and resolve issues that matter most to their customers.

Clear, efficient complaints handling reduces friction, enhances customer confidence, and supports sustainable growth, helping Jersey maintain its reputation as a well-regulated and reliable place to do business.

By examining complaints across different sectors, we can detect systemic weaknesses or sector-specific trends while promoting higher service standards that ensure all firms treat their customers fairly. Improvements in the identification, management and resolution of customer complaints will strengthen trust in our finance industry.

Our focus on this key area of industry conduct supports Jersey’s competitiveness agenda. An international finance centre known for robust oversight, transparent processes and strong consumer protection is more attractive to the island’s global customer base.

2.2    Your obligations

Under each of the sector-specific Code of Practice, Principle 3 requires you to organise and control your affairs effectively for the proper performance of your business activities. You must be able to demonstrate the existence of adequate risk management systems, which include internal systems and controls for establishing effective complaint-handling systems.

An effective complaints handling system includes maintaining a complaints register along with adequate systems and controls (including policies and procedures) for ensuring the proper management of complaints.

We expect your systems and controls to cover:

• how customers are informed about the treatment of their complaint, including being kept up to date on progress
• how the complaint will be acknowledged, handled and determined (ensuring transparency, competence, diligence and impartiality on your part)
• how complaints data is used to identify emerging patterns and improve customer outcomes
• notifying us in the event a complaint is not resolved satisfactorily, a pattern of complaints is identified, or where a claim is made under your professional indemnity insurance

2.3    Key areas of focus for the examination

The key areas of focus for us in this examination will include:

• systems and controls (including policies and procedures) in place to identify, manage and resolve customer complaints
• training provided to staff on how to manage customer complaints
• your complaints register and a sample of complaints records or customer files
• any monitoring and reporting on complaints data
• governance and oversight of complaints and resulting actions

Contact us

Our team are here to support you.

If you have any questions about our thematic examination programme, please contact our Supervision Examination Unit.