Jersey - "failure to prevent money laundering" offence, in effect from Friday 24 June 2022.
The Proceeds of Crime (Amendment No. 7) (Jersey) Law 2022 received Royal Assent and is in force on Friday, 24 June.
The amendment adds a new offence of "failure to prevent money laundering" under a new Article 35A.
This offence will mean that
- If a customer of a financial services business in Jersey is found to have been "engaged in money laundering", then the business could also be found guilty of an offence under Article 35A
- Unless it can prove that it "adequately maintained and applied prevention procedures concerning the activities".
- The amendment shifts the evidentiary burden around policies, procedures, systems and controls.
- Post-Amendment No. 7, once money laundering by a customer has been established, the burden will be on the financial services business to prove that the policies and procedures were up to scratch as a defence.
- Amendment No. 7 also provides for the directors of a business to be caught by criminal liability where the business commits the Article 35A offence with the “consent or connivance” of a director.
See link below to the legislation.
See earlier Comsure postings