Industry update

Thematic examination programme 2022

In December 2021, we advised that our Examination Unit would continue to conduct thematic examinations during 2022, as part of our examination programme.

The themes for the 2022 examination programme are:

  • Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) Business Risk Assessment (BRA) and strategy;
  • The role of the Money Laundering Compliance Officer (MLCO) and;
  • Beneficial Ownership and Control (BOC).

The chosen themes represent key AML/CFT requirements and provide us with the opportunity to review the standard of compliance and management of associated risks across a number of different businesses. The feedback published will support a higher rate of compliance and wider industry education.

Next steps

Prior to the start of each thematic, we will communicate in more detail:

  • The regulatory requirements to be examined, relevant to the specific theme; and
  • Our expectations of Industry in relation to these requirements.

Your supervisor will contact you to let you know if we are going to undertake a thematic examination of your business.

Following each thematic examination, we will issue a feedback paper and hold a webinar to communicate our findings and good practice observed.

2022 themes in more detail

AML/CFT Business Risk Assessment (BRA) and strategy

The first of the thematic examinations will review the extent to which relevant persons have undertaken an assessment of their exposure to money laundering and terrorist financing risk, and documented a resulting strategy to counter it.

Relevant persons are expected to have a comprehensive and up to date BRA in place which assesses the financial crime risks relevant to the business, and is clearly supported by data. On the basis of its BRA, a formal strategy must be established to effectively mitigate the risks identified.

The role of the Money Laundering Compliance Officer (MLCO)

The second thematic examination will focus on the role of the MLCO. The Money Laundering (Jersey) Order 2008 (Order) requires a relevant person to appoint an individual as MLCO, and tasks that individual with the function of monitoring its compliance with legislation in Jersey relating to money laundering and financing of terrorism and AML/CFT Codes of Practice, and reporting thereon to senior management.

The MLCO must have sufficient experience, skills, independence, authority, time and resources to be effective in the role. The responsibilities of the MLCO are expected to be clearly defined and understood, and include a compliance monitoring programme aligned to the AML/CFT regulatory framework.

Beneficial Ownership and Control (BOC)

The last thematic examination of the year will focus on BOC. Where relevant persons have customers which are legal persons, the Order requires that the ownership and control structure of that customer must be understood. It also requires that the individuals who are the customer’s beneficial owners and controllers are identified.

Relevant persons are expected to have gathered relevant information on the ownership and control structure; validated that information; and checked that the information held makes sense. Any assessments undertaken to determine which individuals are the beneficial owner(s) and/or controller(s) should be documented. The records should be clear as to who has and who has not been identified, along with the rationale.