Press Release - 3 May 2002
Jersey Implements Financial Action Task Force Recommendation on Wire Transfers
The Jersey Financial Services Commission has moved to implement the new Financial Action Task Force Recommendation relating to electronic wire transfers.
The Commission advises Jersey's financial services businesses - including banks and trust companies - that they should keep details of the name, home address and account number of the payment originator on all outward wire transfers.
Banks must also ensure that these details remain with the transfer throughout the payment chain until it reaches its final destination.
If similar details are not provided with incoming wire transfers, the finance business is expected to exercise due diligence - and report any suspicions to the Joint Financial Crimes Unit of the States of Jersey Police.
Where several banks are involved in an electronic money transfer - for example, where bank A is instructed by bank B to pay funds into an account held at bank C - the initiating banks are expected to attach original originator and beneficiary details to the funds transfer message.
The Commission's guidance note adds that financial service businesses should pay particularly close attention to incoming fund transfers that lack the required originator details - especially if they come from a country known to provide safe haven to terrorists or their money.
The move stems from the FATF recommendations relating to terrorist financing. One of these recommendations requires all countries to introduce new requirements in respect of wire transfers.
Richard Pratt, Director General of the Jersey Financial Services Commission, said today: "We are already compliant with most of the new FATF recommendations in respect of terrorist financing. This new Guidance relates to the use of electronic transfers. Such transfers account for the vast majority of funds as they move internationally. This increased transparency will make it harder for money launderers to use these international payment systems."