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Press Release - 10 May 2006

Consultation Paper on the draft Handbook for the Prevention and Detection of Money Laundering and Terrorist Financing.

The Jersey Financial Services Commission today published a consultation paper on the draft Money Laundering (Jersey) Order 200- and the draft Handbook for the Prevention and Detection of Money Laundering and Terrorist Financing. The paper can be found on the Commission website, www.jerseyfsc.org.

The Commission will also be holding seminars as part of the process to facilitate consultation with interested parties. Further information on the seminars is available on the Commission’s website, or by telephoning (01534) 629800.
The programme of events is as follows:

Part One: 15, 16 and 17 May 2006 – Seminars presenting an overview of the proposals

Part Two: Week beginning 19 June 2006 – Discussion fora focusing on key proposals

Part Three: 14 August 2006 – Consultation response period closes

Part Four: December 2006 and January 2007 – Training on the new requirements

The purpose of the consultation paper is to convey proposals to update Jersey’s measures to combat money laundering and terrorist financing so that these are consistent with certain key elements of the revised Financial Action Task Force (“FATF”) Recommendations on Money Laundering and Terrorist Financing. The proposals are contained within two documents, a draft Money Laundering (Jersey) Order 200- (“draft Money Laundering Order”) to replace the existing Money Laundering (Jersey) Order 1999 and a draft Handbook for the Prevention and Detection of Money Laundering and Terrorist Financing (“draft Handbook”), to replace the existing Guidance Notes for the Finance Sector.

The proposals are consistent with Jersey’s commitment to the implementation of international standards to combat money laundering and terrorist financing.

The draft Money Laundering Order and Handbook propose a number of important changes. In particular:

  • A risk-based approach to customer due diligence is set out, that permits reduced or simplified measures in the case of lower risk relationships, and requires enhanced customer due diligence in the case of higher risk relationships.
  • Much more emphasis is placed on customer due diligence measures other than identification and verification of identity, and, in particular, on ongoing monitoring of unusual, complex, and higher risk activity and transactions.
  • More customer friendly ways of verifying the identity of applicants for business or customers, including scope for greater reliance on a single document to verify identity in lower risk circumstances, for example, a passport.
  • Measures to guard against the financial exclusion of Jersey residents have been clarified. In particular, in the case of a lower risk minor, whose parent or guardian is unable to provide standard documentation to verify the minor’s identity, identity may be verified through use of the minor’s birth certificate.
  • The responsibilities of senior management in preventing and detecting money laundering are also emphasised as part of a section addressing corporate governance.


In addition, the consultation paper highlights that the FATF Recommendations require the extension of measures to combat money laundering and terrorist financing to non-financial businesses and professions, and to include certain activities conducted by lawyers, accountants and estate agents, and the sale of high value goods for cash. The paper considers how Jersey might address this requirement.


David Carse, Director General of the Commission, said:

“These proposals are intended to enable Jersey to meet its international obligations, in line with the standards established by the Financial Action Task Force, to combat money laundering and terrorist financing. The proposals highlight the importance of a risk based approach to combating money laundering and terrorist financing, which is intended to focus resources on higher risk customers, whilst at the same time easing the burden on other customers.”


- Ends -


Click below to view the consultation paper and associated seminars:

Consultation paper


Appendix A: Draft Money Laundering (Jersey) Order 200-


Appendix B: Draft Handbook for the Prevention and Detection of Money Laundering and Terrorist Financing

Appendix C: List of representative bodies who have been sent the consultation paper

Seminar programme

 

For further information contact:

Andrew Le Brun
Director, International and Policy
Jersey Financial Services Commission

Telephone: +44 (0) 1534 822065
Facsimile: +44 (0) 1534 822001
Email: a.lebrun@jerseyfsc.org


Helen Holmes
Senior Manager, International and Policy
Jersey Financial Services Commission

Telephone: +44 (0) 1534 822104
Facsimile: +44 (0) 1534 822001
Email: h.holmes@jerseyfsc.org


Note for editors:

1. The Financial Action Task Force (the “FATF”) is an inter-governmental body whose purpose is the development and promotion of national and international standards to combat money laundering and terrorist financing. The FATF has published 40 + 9 Recommendations in order to meet this objective. Further information on the FATF and its 40 + 9 Recommendations are available on the FATF website: www.fatf-gafi.org

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