Amendments to the AML/CFT Handbook - Addition of reference to Proliferation Financing, explanatory graphics, and more
Countering proliferation financing now clearly referenced in the AML/CFT/CPF Handbook
Jersey is required to comply with a range of recommendations set out by the Financial Action Task Force (FATF).
These recommendations cover money laundering, the financing of terrorism, and the financing of proliferation of weapons of mass destruction.
In order to better reflect our obligations, we have updated the full AML/CFT Handbook so that it makes explicit reference to countering proliferation financing (CPF) whenever relevant.
We have also added a new Section 8.8, providing guidance on the reporting obligations set out in the Sanctions and Asset-Freezing (Jersey) Law 2019. Updates to the Glossary have also been made to account for the changes described above.
Going forward the Handbook will be known as the AML/CFT/CPF Handbook.
What this means
These amendments do not represent a change in policy.
It remains our expectation that supervised persons should have controls in place regarding proliferation financing.
To make the Handbook easier to use, we have added five new graphics to further explain certain areas covered in the document:
- Section 2.3.1 – Example of how risk might be calculated in a Business Risk Assessment (BRA)
- Section 2.3.1 – Example of a BRA
- Section 4.5.1 – Flowchart for three-tier test (can also be applied to Sections 4.4.1, 4.4.3, 4.5.3 and 4.5.5 where the person being identified is not a natural person)
- Section 5.1 – Comparison of reliance arrangements which are acceptable, and those which are not
- Section 8.2.3 – Difference between terms ‘knowledge’, ‘suspicion’ and ‘reasonable grounds for suspicion’ in the context of suspicious activity reporting
Section 4 amendments regarding Digital ID systems
On 30 November we, together with the Government of Jersey, published feedback on the 2022 consultation relating to the adoption of Digital ID Systems by supervised persons. Part of this feedback committed us to updating the AML/CFT/CPF Handbook taking into account some practical considerations and amendments to help supervised persons in the short term. These quick changes have now been completed, and amended guidance is now available in sections 184.108.40.206-4, 4.4.5, and 4.5.7.
Further work will be underway throughout 2023 to make further revisions to Section 4 of the AML/CFT/CPF Handbook following this feedback.
Updates following changes to the Money Laundering Order
On 1 September 2022 the Limited Liability Companies (Jersey) Law 2018 came into force, alongside two sets of regulations. A Jersey limited liability company has separate legal personality but is not a body corporate. This law coming into force required consequential amendments to a range of other Jersey legislation, including the Money Laundering (Jersey) Order 2008.
To reflect these amendments, we have made changes to Sections 3, 4, 7, 13. These changes are purely administrative in nature. They do not add to, or amend, any AML/CFT Codes of Practice.
If you have any questions, please contact Pia Holm and Andrew Henson via CPHandbook@jerseyfsc.org.