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Jersey – FSB/TCB administered customer entities may be drawn into AML rules and regulations….and will need an MLRO/MLCO, CMP, ETC……

22/02/2022

The JFSC sent out an update about the NEW [UPDATED] AML handbook that may impact JERSEY TCB/FSB and their underlying customer entities – the update is as follows.

JFSC UPDATE

On 31 January 2022, the JFSC published the JFSCs consolidated AML/CFT Handbook (the consolidated handbook). This represents a merger of four AML handbooks into one document, providing a single point of reference for Industry.

The new consolidated handbook. https://www.jerseyfsc.org/media/5181/20220128-consolidated-handbook-published-31-jan-2022-effective-31-may-2022.pdf

At present, supervised persons who carry on business to which paragraph 7(1) of Part B of Schedule 2 to the Proceeds of Crime (Jersey) Law 1999 (the Proceeds of Crime Law) applies (“Other services”) are not required to comply with any Codes of Practice in the existing handbooks, in cases where the person:

  1. Is provided with any service that falls within Article 2(3) and (4) of the Financial Services (Jersey) Law 1998 by a person registered under that Law
  • To carry on trust company business [TCB] or
  • Is provided with any service within fund services business [FSB] (within the meaning of that Law) by a person who is registered under that Law to carry on fund services business and
  • Has no established place of business in Jersey other than a place of business provided by a person who is registered under the Financial Services (Jersey) Law 1998 to carry on trust company business or fund services business.

These persons are, however, expected to refer to the handbook for regulated financial services business as guidance.

EXTENSION TO SCOPE OF HANDBOOK

  1. The scope of the consolidated handbook has been extended, so that compliance with its Codes of Practice will be mandatory for all supervised persons, including the type of person described above.
  2. If “JERSEY TCB/FSBS”  provides services to any supervised persons who meet the description provided above, THE JFSC suggest I you haven’t done so already,
    • Please inform the boards of such persons of these upcoming changes.
  3. The JFSC  also encourage the boards to review the JFSCs consultation and feedback papers for detailed information regarding the background to the consolidation and its key features.

 TRANSITION PERIOD - 31 May 2022.

  1. The JFSC have put in place a four-month transition period, meaning the consolidated handbook will become effective on 31 May 2022.
  2. From this date, ALL SUPERVISED PERSONS will be required to comply with the Codes of Practice contained within the consolidated handbook.
  3. It is the JFSCs expectation that all supervised persons use this time to carefully review and consider the consolidated handbook in the context of their business to ensure they can comply with their regulatory obligations.

INFORMATION REQUEST

The JFSC wants updates by the close of business 31 May 2022 on the following matters

  1. If “JERSEY TCB/FSBS”  DO NOT PROVIDE SERVICES to any persons who meet the description above, they are required to confirm this by emailing RegulatoryMaintenance@Jerseyfsc.org.
  2. Where [if] “JERSEY TCB/FSBS”   does provide services to any supervised persons who meet the description provided above, they are asked to complete an excel workbook and return it to the JFSCs Regulatory Maintenance team by emailing RegulatoryMaintenance@Jerseyfsc.org.

In the workbook the JFSC are asking for the following information for each person that “JERSEY TCB/FSBS”  provide services who meets the description ABOVE:

  1. Which activity in paragraph 7(1) of Part B of Schedule 2 to the Proceeds of Crime Law the person is carrying on
  2. Name, contact details and date of appointment for the person’s MLCO
  3. Name, contact details and date of appointment for the person’s MLRO
  4. Registered office address of the person and date of commencement at that address
  5. Name, contact details and date of appointment for the person’s Trust Company Business/Fund Services Business service provider

“JERSEY TCB/FSBs”  must provide this information by close of business 31 May 2022.

MAINTENANCE AND NOTIFICATIONS

“JERSEY TCB/FSBs”  are then asked to keep the above details updated with the JFSC on an ongoing basis via contact with the supervisor of their TCB/FSB service provider.

Going forward, the JFSC REQUIRE notification when “JERSEY TCB/FSBS”  start providing services to any persons meeting the description above and provide us with the information requested in the attached workbook.

JERSEY