ASK MAT - I live in Jersey and have accepted an offer to be a NED to a company in another country. Do I have to be supervised by the JFSC

ASK MAT - I live in Jersey, and I have just accepted an offer to be a non-executive director of a company in another country. Do I have to be a supervised person under Jersey’s Schedule 2 of the Proceeds of Crime legislation?

MAT SAYS:- Thank you for a great question. This is asked a lot and the answer sometimes surprises many.

Based on Jersey's Proceeds of Crime (Jersey) Law 1999, as amended, Schedule 2 includes trust and company service provider activities such as acting (or arranging for another to act) as a director of a company. This applies to any company, not just those incorporated in Jersey.

As a Jersey resident accepting a non-executive directorship in a foreign company, you are likely carrying out this activity "in or from within Jersey" if you perform related duties (e.g., decision-making, signing documents, or attending virtual meetings) from Jersey. If the role is compensated or otherwise meets the criteria for being conducted AS A BUSINESS (e.g., held out as a service, commercial intent, or provided to a third party), it falls within scope.  Conducted as a business as a measure differs from the 'BY WAY OF BUSINESS' test used for conduct and prudential regulation.

Since September 2024, such "third-party directors" are classified as low-risk directors under the Proceeds of Crime (Low-Risk Financial Services Business) (Jersey) Order 2024. This means you must register with the Jersey Financial Services Commission (JFSC) as a Schedule 2 business to become a supervised person. As a low-risk director, you benefit from a few exemptions from certain AML/CFT obligations (e.g., no need for whole policies/procedures under Articles 7–11A of the Money Laundering (Jersey) Order 2008). However, other requirements, like customer due diligence and suspicious activity reporting, still apply.

Failure to register when required can lead to penalties. I recommend checking my sources below and, in particular, the JFSC's guidance or consulting a Jersey legal advisor for your specific circumstances, as the three-part scope test (activity listed in Schedule 2, conducted as a business, and in/from Jersey) must be fully assessed.

And

To answer your question about whether you need to be a supervised person under Jersey’s Schedule 2 of the Proceeds of Crime legislation, I relied on the sources below. These sources were accessed through web searches and my knowledge base, ensuring the information reflects the current regulatory framework as of July 30, 2025.

These links correspond to the key documents and guidance referenced:

1. Jersey Financial Services Commission (JFSC) Guidance on Trust and Company Service Providers (TCSP) and Schedule 2 Activities:
• Guidelines on Interpretation of Article 36 of the Proceeds of Crime (Jersey) Law 1999: https://www.jerseyfsc.org/media/6448/guidelines-on-interpretation-of-article-36.pdf
2. Proceeds of Crime (Jersey) Law 1999, as amended:
• Official Consolidated Version: https://www.jerseylaw.je/laws/current/Pages/08.780.aspx
3. Proceeds of Crime (Low-Risk Financial Services Business) (Jersey) Order 2024:
• Official Consolidated Version: https://www.jerseylaw.je/laws/current/Pages/08.780.67.aspx
• Enacted Version (PDF): https://www.jerseylaw.je/laws/enacted/PDFs/RO-050-2024.pdf
4. Money Laundering (Jersey) Order 2008:
• Official Consolidated Version: https://www.jerseylaw.je/laws/current/Pages/08.780.30.aspx
5. General JFSC Regulatory Framework:
• AML/CFT/CPF Handbook: https://www.jerseyfsc.org/industry/financial-crime/amlcftcpf-handbooks/amlcftcpf-handbook/

These links provide access to the official legislation and JFSC guidance as of my last update.

Please note that regulatory content may evolve, so verifying the current status on the JFSC or Jersey Law websites is recommended. For a specific application to your situation, consulting a Jersey legal advisor is advised.