I am a non-Jersey resident who is director of a Jersey company – Am I supposed to register with the JFSC?

Being a non-Jersey resident or domiciled director does not automatically preclude an individual from being within scope specified within the second schedule (Schedule 2) to the Proceeds of Crime (Jersey) Law 1999 (Proceeds of Crime Law)

Those considering whether their activities and operations fall within this broad range of specified activities and operations should adopt an approach that prefers inclusion over exclusion.

A person that fails to register as a Schedule 2 business then carries on unauthorised Schedule 2 business may be found to be in contravention of Article 10 of the Proceeds of Crime (Supervisory Bodies) (Jersey) Law 2008 (Supervisory Bodies Law) which is an offence carrying liability to imprisonment for a maximum term of 7 years and a fine.

To help answer the question the JFSC has issued several pieces of guidance that follow below.

THE JFSC SAYS.

• Being a non-Jersey resident or domiciled director does not automatically preclude an individual from being within scope.
• It is the BUSINESS OF PROVIDING DIRECTOR SERVICES that is caught.
• You must consider whether, by acting as a director, you are providing those director services “AS A BUSINESS TO THIRD PARTIES”.
• https://www.jerseyfsc.org/industry/sectors/financial-crime-schedule-2-business/schedule-2-business-directors-faqs/

THE JFSC PROVIDE THE FOLLOWING EXAMPLE

• I am a UK resident who provides director services to, amongst other entities, a Jersey company. I am already registered and supervised for the provision of these services in the UK. Do I still need to register with the JFSC.
  • Q14 - https://www.jerseyfsc.org/industry/sectors/financial-crime-schedule-2-business/schedule-2-business-directors-faqs/
• In this example, you are providing director services as a business to a third party so would be within scope and required to also register in Jersey as the activity is being carried out for a Jersey company and/or in Jersey.
• Being resident outside of Jersey does not automatically preclude an individual from being within scope. It is the business of providing director services that is caught.

THE JFSC THEN GOES ON TO SAY.

• You must consider whether, If, as a business, you are carrying out an activity or operation listed in Schedule 2, IN OR FROM WITHIN JERSEY, you are required to register with the JFSC.

THE JFSC OFFERS SOME GUIDANCE ON WHAT IS IN SCOPE:-

• Conducting business* ‘IN OR FROM WITHIN’ JERSEY, may include (but is not limited to) the following example:
  • See guidance on interpretation of ‘IN OR FROM WITHIN JERSEY’ for the purposes of Proceeds of Crime (Supervisory Bodies)(Jersey) Law 2008 in relation on Non-Jersey Individuals.
  • https://www.jerseyfsc.org/media/7198/guidance-on-interpretation-of-in-or-from-within-jersey-for-the-purposes-of-proceeds-of-crime-supervisory-bodies-jersey-law-2008-301123.pdf
• A Non-Jersey individual who has some degree of permanence in Jersey (permanence in this sense means they have a fixed/service office from which they work when in Jersey, such office being taken in their own name for the purpose of their business activities).

THE JFSC OFFERS SOME GUIDANCE ON WHAT IS OUT OF SCOPE:-

• For the purposes of ‘IN OR FROM WITHIN JERSEY’, the following financial services business Schedule 2 activities ARE NOT TREATED as business carried on ‘in or from within jersey’.
• Provided solely from outside Jersey as a result of marketing or soliciting in Jersey or specifically targeting Jersey,
• The provision of advice outside Jersey solely as a result of that advice being received in Jersey.
• A transaction amounting to financial services business Schedule 2 activity by virtue of which an overseas person 1. deals with a person in Jersey; or 2. acts as an agent for a person in Jersey; or 3. carries our discretionary management activities for a person in Jersey is not treated as being carried on ‘in or from within Jersey’ solely as a result of that person being in Jersey.
• Solely as a result of a customer giving effect to a contract from within Jersey

FOR ANY OTHER GUIDANCE

• email mathew@comsuregroup.com

SOURCES

• https://www.jerseyfsc.org/industry/sectors/financial-crime-schedule-2-business/schedule-2-business-directors-faqs/
• https://www.jerseyfsc.org/media/7198/guidance-on-interpretation-of-in-or-from-within-jersey-for-the-purposes-of-proceeds-of-crime-supervisory-bodies-jersey-law-2008-301123.pdf
• https://www.jerseyfsc.org/media/7208/guidelines-on-interpretation-031023.pdf