Dropping your MLCO? Jersey’s new exception is narrower than it looks

The JFSC published its consultation feedback today on the Money Laundering Compliance Officer (MLCO) regime, with tracked changes to Handbook Section 2.6.

1. The statutory power not to appoint an MLCO (Article 7(1A) of the Money Laundering (Jersey) Order 2008) has been law since 30 June 2026.

2. The Code of Practice the decision must be measured against, COP18A, takes effect on 31 October 2026.

3. For some small firms this is a real opportunity. For most, it will change very little.

Here is what you need to know.

What you need to know

1. It is a size AND risk test, and the risk must be “low”.

   1. COP18A requires a documented determination that your ML/TF/PF risk is low. Size alone will never get you over the line.

   2. The JFSC dropped its proposed numerical thresholds, so there is no headcount or customer number that qualifies you automatically.

2. Compliance monitoring does not go away.

   1. The JFSC withdrew its proposal to let firms without an MLCO drop formal monitoring, because it would conflict with Article 11 of the MLO.

   2. Without an MLCO, the board owns proportionate monitoring arrangements and must be able to show the framework works.

3. You still need an MLRO.

   1. Article 8 is unchanged. There is no equivalent exception (sole traders aside).

4. Most regulated firms are “ordinarily expected” to keep an MLCO.

   1. That covers banking, collective investment funds, insurance, AIFs, VASPs and everything under the Financial Services (Jersey) Law, which includes trust company business, fund services and money service business.

   2. In practice, the exception is aimed at small Schedule 2 / DNFBP firms.

5. It must be documented, reviewed and notified.

   1. All six limbs of COP18A apply: a low-risk determination, all relevant risk factors considered, a written rationale, ongoing review and review at trigger events, notification to the JFSC, and appointment of an MLCO without delay if the basis falls away.

What to look out for

• Timing.

  • In our reading, 31 October 2026 is the earliest date you can rely on Article 7(1A), because the decision must be made by reference to COP18A. The JFSC has not restated this in its feedback, so confirm before acting.

• Missing guidance.

  • The feedback paper says guidance on review frequency, trigger events, governance evidence and the AMLSP’s role has been refined, but the tracked Section 2.6 does not contain it.

  • Do not build your case on guidance that has not been published. Check the clean Handbook due on 2 November.

• “Low” is not “lower”.

  • The reliance regime now uses lower risk. COP18A uses low.

  • Do not read one across to the other.

• AMLSP client firms.

  • AMLSPs can bulk-notify on behalf of client firms between 2 November 2026 and 31 January 2027.

  • Agree in writing who makes the determination, who signs it off and who carries the risk if it is wrong.

• Expect challenge at examination.

  • A regulated firm in the “ordinarily expected” categories that drops its MLCO should be ready to defend that choice.

Key dates + What happens

• 31 Oct 2026 - COP18A and remaining Section 2.6 changes take effect

• 2 Nov 2026  - Clean Handbook published; AMLSP bulk notification window opens

• 31 Jan 2027 - AMLSP bulk notification window closes

• 1 Feb 2027 - AMLSPs revert to the individual MLCO notification form

Want the full briefing?

• Our 10-page Comsure briefing covers the statutory provisions, the COP18A limbs, the size and risk indicators, the notification routes, our seven challenge points, the questions still awaiting JFSC clarification and an action checklist for firms and AMLSPs.

• To request a copy, email info@comsuregroup.com or call +44 (0) 1534 626841.

Warning

This post is general information only, based on JFSC material published on 21 October 2026. It is not legal advice. Take advice from your own lawyers and, for regulatory clarity, contact the JFSC.