Offences and Penalties - Financial Services (Disclosure and Provision of Information) (Jersey) Law 2020

Annual confirmation statement

Article 5 (1) An entity must, within the relevant period, provide a statement (an “annual confirmation statement”) to the Commission verifying that the beneficial owner information, significant person information and any other prescribed information provided to the Commission in relation to the entity is accurate.

Article 5 (2) OFFENCE: failure, without reasonable excuse, to provide annual confirmation statement within the relevant period

A fine not exceeding level 3 (currently £10,000) on the standard scale.

An entity is also liable to a daily default fine, being a fine not exceeding level 2 (currently £1,000) on the standard scale, for each day (other than the first day) on which the subsequent offence is proved to have continued if –

(a) the entity has been convicted of an offence;

(b) the entity is convicted of having again committed that offence; and

(c) on that subsequent occasion the contravention has continued for more than one day.

Appointment of nominated person

Article 6 (1) An application to the Commission to register or establish an entity must specify the appointment of at least one of the following persons (an “eligible person”) as a nominated person for the entity –

(a) a person registered under Part 2 of the Financial Services (Jersey) Law 1998 to carry on trust company business that involves the provision of a service –

(i) to act as or arrange for another person to act as secretary, alternate, assistant or deputy secretary of a company or a limited liability partnership, or

(ii) to provide a registered office or business address for a company, partnership or foundation;

(b) a significant person of the entity who is ordinarily resident in Jersey;

(c) a lawyer who is ordinarily resident in Jersey and carrying on business described in paragraph 1 of Part B of Schedule 2 to the Proceeds of Crime (Jersey) Law 1999;

(d) an accountant who is ordinarily resident in Jersey and carrying on business described in paragraph 2 of Part B of Schedule 2 to the Proceeds of Crime (Jersey) Law 1999;

(e) a fund services business construed in accordance with Article 2(10) of the Financial Services (Jersey) Law 1998;

(f) such other person as may be prescribed.

Article 6 (6) If the appointment of a nominated person is revoked or a nominated person resigns and the entity has no other nominated person, the entity must, not later than 21 days after the revocation or resignation –

(a) appoint at least one nominated person, being an eligible person; and

(b) notify the Commission of the appointment.

Article 6 (7) OFFENCE: failure, without reasonable excuse, to appoint nominated person and notify the Commission upon incorporation/registration or upon resignation/revocation of appointment where there is no other nominated person

A fine not exceeding level 3 (currently £10,000) on the standard scale.

An entity is also liable to a daily default fine, being a fine not exceeding level 2 (currently £1,000) on the standard scale, for each day (other than the first day) on which the subsequent offence is proved to have continued if –

(a) the entity has been convicted of an offence;

(b) the entity is convicted of having again committed that offence; and

(c) on that subsequent occasion the contravention has continued for more than one day.

Royal Court may declare dissolution of entity void

Article 19 (6) The person on whose application the order was made must, not later than 28 days after the order is made or within such longer period as the Royal Court may allow, deliver the Act of the Royal Court to the registrar.

Article 19 (7) OFFENCE: failure to deliver to the registrar within 28 days (or such longer period as the Court may allow) an Act of Court declaring the dissolution of an entity void

A fine not exceeding level 3 (currently £10,000) on the standard scale.

An entity is also liable to a daily default fine, being a fine not exceeding level 2 (currently £1,000) on the standard scale, for each day (other than the first day) on which the subsequent offence is proved to have continued if –

(a) the entity has been convicted of an offence;

(b) the entity is convicted of having again committed that offence; and

(c) on that subsequent occasion the contravention has continued for more than one day.

Information to be provided to Commission

Article 4 (3) An entity must notify the Commission of the change, error or inaccuracy in relation to the information referred to in paragraph (2) not later than 21 days after the entity becomes aware of it.

Article 4 (2) Paragraph (3) applies if an entity becomes aware of a change occurring, or an error or inaccuracy, in the following –

(a) the entity’s significant person information;

(b) the entity’s beneficial owner information, unless the entity is listed on a regulated market;

(c) any other prescribed information.

Article 4 (4) OFFENCE: failure, without reasonable excuse, to notify the Commission of any change, error or inaccuracy in the entity’s BO or SP information within 21 days

A fine and 4 years’ imprisonment

Provision of information to local competent authorities

Article 9 (1) A local competent authority may, by notice in writing, require a defined person to provide, within a period specified in the notice, any further information or documents that the authority requires for the purpose of carrying out the authority’s functions under this Law or any other enactment.

Article 9 (2) A local competent authority may, by notice in writing, require a defined person to attend at such times and places as may be specified in the notice and to answer such questions as the authority requires the person to answer for the purpose of carrying out the authority’s functions under this Law or any other enactment.

Article 9 (3) OFFENCE: failure to comply with a notice under Art.9(1) or 9(2) within the specified period

A fine and 4 years’ imprisonment

Permitted disclosure of information

Article 10 (1) A person must not disclose any information obtained in connection with the administration or execution of a function under this Law unless that disclosure is made –

(a) with the consent of the person from whom the information was obtained or to whom the information relates;

(b) in connection with the administration or execution of a function under this Law;

(c) for the purposes of any legal proceedings;

(d) to a law enforcement agency for the purpose of the investigation or prosecution of an offence;

(e) to a regulatory officer for the purpose of assisting the officer in the exercise of the officer’s functions;

(f) to a local competent authority;

(g) as otherwise permitted by this Article or Regulations; or

(h) with other lawful excuse.

Article 10 (2) OFFENCE: failure to comply with Art.10 (1)

A fine and 5 years’ imprisonment

False or misleading information

Article 14 (1) A person who knowingly or recklessly provides the Commission, a nominated person or any other person entitled to information under this Law with information that is false or misleading in a material particular commits an offence.

Article 14 (2) A person who, with intent to avoid detection by the Commission or the registrar of an offence under this Law, removes out of the jurisdiction, destroys, conceals or fraudulently alters any information, or causes or permits the removal, destruction, concealment or fraudulent alteration of any information, commits an offence.

Article 14 (3) A person commits an offence if the person fails to provide the Commission with any information in the person’s possession knowing or having reasonable cause to believe that the information is required to be provided to the Commission under this Law in relation to that person.

As stated in legal requirement – Articles 14 (1), (2), (3)

A fine and 7 years’ imprisonment