Anti-Money Laundering Services Provider (AMLSP) FAQs Guidelines and Legal Notices

Last revised:14 September 2023

Schedule 2 business: AMLSPs FAQs

These frequently asked questions have been collated to respond to queries from Industry. They may be updated from time to time.

1. Can an Alternative Investment Fund Services Business (AIFSB) that provides services to private funds and securities issuers use an AMLSP?

Yes. The eligibility criteria in the Article 9A(4) Notice have been amended to permit an AIFSB that is not also a registered fund services business to use an AMLSP.

2. Does a designated service provider (DSP) to a Jersey private fund (JPF) automatically become /convert to an AMLSP?

No. The DSP, if it meets the eligibility criteria in the Article 9A(4) Notice, will also have to complete the AMLSP Key Person application and the JPF, or its governing body (eg its trustee or GP), will have to appoint it as the JPF's AMLSP.

3. What impact does the creation of the AMLSP function have on a manager of a managed entity (MoME) and managed entities?

None. Fund services businesses that are a managed entity can continue to use a MoME (including in relation to their AML obligations) but cannot use an AMLSP. Both parties continue to be covered by the AML/CFT/CPF Handbook issued by the JFSC.

4. What impact does the creation of the AMLSP function have on an unclassified fund or a recognized fund?

None. The relevant AML arrangements for unclassified funds and recognized funds continue to be covered by the relevant existing sections of the AML/CFT/CPF Handbook.

5. I am a service provider who is regulated under the Financial Services (Jersey) Law 1998. Can I appoint an AMLSP?

No, unless you are an AIFSB that is not also a registered fund services business (see question 1 above).

Certain regulated supervised persons, including fund services businesses, that have no employees of their own and are administered by a regulated business may continue to receive AML support services (including the provision of an MLRO and MLCO) from that regulated business who continue to be covered by the AML/CFT/CPF Handbook issued by the JFSC. (See question 3 above in relation to managed entities.) See also FAQ9.

6. I am a recognized fund functionary who is regulated under the Collective Investment Funds (Jersey) Law 1988 (CIF Law). Can I appoint an AMLSP?

No. Such functionaries that have no employees of their own and are administered by a regulated business may continue to receive AML support services (including the provision of an MLRO and MLCO) from that regulated business who continues to be covered by the AML/CFT/CPF Handbook issued by the JFSC.

7. I am an unregulated service provider to funds and securities issuers. Can I appoint an AMLSP?

Yes. Non-regulated service providers to funds and securities issuers can appoint an AMLSP. For example:

Service providers and functionaries that are not regulated businesses
Sub-threshold AIFMs

To the extent that any such unregulated service providers to funds and securities issuers currently receive AML support services (including the provision of an MLRO and MLCO) from a regulated business, they (or their governing body) will need to appoint that regulated business as their AMLSP to continue receiving those services. The appointment of an AMLSP will not happen automatically (as with DSPs and JPFs, see question 2 above).

For the avoidance of doubt, where a non-regulated service provider to funds and securities issuers wishes to fulfil the function of MLCO or MLRO themselves, they do not need to appoint an AMLSP.

8. Can all Fund, fund service provider and securities issuer types appoint an AMLSP?

No. Only certain fund, fund service provider and securities issuer types can appoint an AMLSP.

The following funds, service providers to funds, and securities issuers can appoint an AMLSP provided they meet the eligibility criteria in the Article 9A(4) Notice:

Alternative Investment Funds
Unregulated Funds (under the Collective Investment Funds (Unregulated Funds) (Jersey) Order 2008)
Jersey Private Funds (see question 2 above)
Legacy Private Funds (CoBO only, Private Placement Funds, Very Private Funds)
Securities issuers (non-funds e.g. unit trusts or other securities issuers)
AIFSBs that are not also a registered fund services businesses
Sub-threshold AIFMs

9. Where the Schedule 2 activity is in relation to an unregulated legal arrangement and its governing body is regulated, can an AMLSP be appointed in relation to the legal arrangement?

Yes, a regulated person that is acting in the capacity as governing body of a legal arrangement may still be able to appoint an AMLSP to act in relation to the legal arrangement. A Trustee regulated under the FSJ Law to carry on Trust Company Business is a regulated person carrying on regulated business as defined in Article 1 of the Supervisory Bodies Law. However, in accordance with the Notice issued by the JFSC under Article 9A (4) of the Money Laundering Order, the Trustee may also be conducting business, such as lending activities (that are not regulated) in relation to a trust (in its capacity as governing body of the legal arrangement and not in its own capacity for itself). In relation to that lending activity on behalf of the legal arrangement the Trustee should register under the Supervisory Bodies Law on behalf of the trust as the lending activity is not regulated business. The Trustee may appoint an AMLSP to act in relation to the non-regulated lending activity the Trustee is conducting on behalf of the trust.

For example:

A regulated trustee under the FSJ Law may act for a trust. The trustee acting as trustee is a regulated person conducting regulated business.
The trustee on behalf of the trust may also be conducting lending out of the trust assets on behalf of the trust.
The activity of lending is not a regulated business. Therefore, the trustee can appoint an AMLSP in relation to the lending activities it is conducting on behalf of the trust and the AMLSP can complete the AMLSP relevant person workbook using the “legal arrangement” tab in relation to the trust.

If they are eligible, the governing body regulated under the FSJ Law could act as the AMLSP on behalf of the legal arrangement in relation to the lending activities or could appoint another AMLSP. For example, where a trust has a regulated trustee and where the lending activity is on behalf of the trust, and this is not regulated business, the regulated trustee (providing they have the eligible classes of TCB) can act as AMLSP in respect of that trust/trustee arrangement.

10. Can a ‘new’ Schedule 2 business use an AMLSP?

Yes. Whilst a ‘new’ Schedule 2 business is not obliged to appoint an AMLSP, provided all parties meet the requisite eligibility criteria and the AMLSP has obtained a prior no objection from the JFSC in relation to its key persons, they may, should they choose, appoint an AMLSP.

The AMLSP should however only provide services to a ‘new’ Schedule 2 business if they are able to comply with the requirements in section 18 of the AML/CFT/CPF Handbook.

Guidelines and Legal Notices

Guidance for AMLSP workbooks

AMLSP key person application

AMLSP appointment to relevant person workbook

Guidelines on interpretation of - Article 36 of the proceeds of crime(Jersey)Law 1999 (January 2023)

Notice issued under Article 9A (4) of the Money Laundering (Jersey) Order 2008 (April 2023)

Notice issued under Article 10 of the Money Laundering Jersey Order (January 2023)