Jersey - Money Laundering (Jersey) Amendment Order 2026 – June/October 2026

The Money Laundering (Jersey) Amendment Order 2026 was made on 17 April 2026 by the Minister for External Relations (following consultation with the JFSC) under Articles 37 and 43 of the Proceeds of Crime (Jersey) Law 1999. It amends the Money Laundering (Jersey) Order 2008 (MLJO).

The amendments are targeted and aim to:

• Improve proportionality and risk-based application of AML requirements (e.g., compliance officer role).
• Align terminology and strengthen controls around high-risk jurisdictions (FATF “enhanced risk states”).
• Tighten third-party reliance arrangements to reduce ML/TF risks.
• Clarify and expand certain obligations while referencing JFSC Codes of Practice more explicitly.

AMENDMENT LAW =

1. https://www.jerseylaw.je/laws/enacted/Pages/RO-077-2026.aspx

Phased commencement (critical for planning):

• 30 June 2026:
• Articles 1, 2, 3 and 10 (new definitions, compliance officer changes, citation).
• 31 October 2026:
• All remaining provisions (reliance, ECDD, policies, etc.).

Key Changes and Implications

1. New Definitions (Article 1)
• “Enhanced risk state”: Any country/territory where the FATF has called for enhanced customer due diligence (EDD) measures (i.e., FATF high-risk jurisdictions list).
• “Relevant Code of Practice”: JFSC-issued Codes under Article 22 of the Proceeds of Crime (Supervisory Bodies) Law that apply to your firm’s financial services business. Impact: Clearer triggers for EDD and reliance prohibitions; explicit linkage to JFSC Codes.
2. Compliance Officer (MLCO) Requirements (Article 7)
• Appointment is now optional for small firms/low-ML-risk businesses if “not appropriate” (assessed by reference to the relevant Code of Practice, considering size and ML risk).
• If appointed: Must be at a senior management level with timely access to all necessary records (including Article 19 records).
• MLCO role expanded to monitor compliance with Jersey ML enactments AND relevant Codes of Practice.
• MLCO may delegate monitoring/support to others. Impact: Proportionality benefit for smaller firms; clearer accountability and record access for larger firms. (Effective 30 June 2026.)
3. Policies, Procedures and Training (Article 11)
• Minor updates: references updated to “enhanced risk state” and deletion of redundant Code wording. Impact: Update existing AML policies/training to reflect new terminology and reliance rules.
4. Enhanced Customer Due Diligence (Article 15)
• ECDD is now explicitly triggered for customers (and associated parties) with links to an enhanced risk state.
• “Customer” broadened to include beneficial owners/controllers, third parties the customer acts for, their BOs/controllers, and persons acting/purporting to act on behalf of the customer.
• Impact: Slightly wider ECDD application where connections exist via ownership, agency, or third-party relationships.
5. New Article 12A – “Relevant Connection” to Enhanced Risk State Broad definition (used mainly for reliance prohibitions):
• Government/public authority of the state.
• Foreign PEP in relation to that state.
• Resident in the state.
• Business address in the state.
• Customer whose funds/assets/income derive from the state.
• Impact:
• Creates a new prohibition on reliance (see below).
6. Reliance on Obliged Persons (Article 16) and Intra-Group External Persons (Article 16A) – Major Tightening
• Renamed “Reliance on obliged persons”.
• Reliance identification measures now refer to the full Article 3(2).
• Periodic new assurances required at risk-based intervals (based on customer knowledge/risk profile).
• Immediate cessation of reliance required if any of several triggers occur e.g.
• The third party no longer applies measures,
• Fails to provide info/evidence/assurances promptly,
• Loses consent, or
• No longer meets requirements
• Prohibition: Cannot rely on any obliged/external person who has a “relevant connection” to an enhanced risk state.
• For group reliance (Article 16A): Additional condition that any higher ML risk from the external person’s country must be adequately mitigated by group policies/procedures.
• Deleted some prior paragraphs; new safeguards inserted.
• Impact:
• Significant – many existing reliance arrangements (especially with parties linked to FATF high-risk jurisdictions) may need to be terminated.
• Increased ongoing monitoring, documentation, and contract updates are required.

Overall Risk/Compliance Impact

• Higher compliance burden on reliance arrangements and ECDD triggers.
• Proportionality gain for small/low-risk firms on MLCO.
• Firms must integrate “relevant Codes of Practice” into monitoring.
• No immediate change to DNFBP group obligations (heading in Article 11A simplified).
• JFSC supervision will likely focus on these areas post-implementation; alignment with the AML/CFT/CPF Handbook (which has separate enhancements rolling out in 2026) is essential.

Recommended Action Plan for Your Regulated Jersey Firm

Immediate Priority (Now – 30 June 2026)

1. Assign ownership: Appoint a project lead (MLCO or senior compliance manager) and brief the Board/senior management.
2. Gap analysis: Review current AML policy, procedures, risk assessments, and reliance agreements against the new Order.
3. MLCO assessment: Determine whether your firm qualifies for the exemption under new Article 7(1A) by reference to the relevant JFSC Code of Practice. If appointing/reappointing, ensure senior-management status and record access.
4. Reliance audit: Inventory all current reliance arrangements (obliged persons and group entities). Flag any with “relevant connection” to enhanced risk states (cross-reference current FATF list).
5. Customer screening review: Update systems/processes to identify “relevant connections” and broaden ECDD triggers.

IMPLEMENTATION PHASE (BY 31 OCTOBER 2026)

1. Policy & procedure updates:
   1. Revise reliance sections (periodic assurances, immediate cessation protocol, prohibition on enhanced-risk connections, group risk mitigation).
   2. Update ECDD triggers and definitions.
   3. Incorporate monitoring of relevant Codes of Practice.
2. Contractual & operational changes: Amend reliance agreements to include new assurance, information-sharing, and cessation obligations. Implement processes for requesting evidence/assurances “without delay”.
3. Training: Roll out updated staff training on new rules (focus on reliance, ECDD, and enhanced risk states).
4. Systems & controls: Enhance ongoing monitoring, record-keeping, and risk-profiling tools.
5. Testing & documentation: Conduct internal testing of new controls; document all changes for audit/JFSC purposes.

Ongoing/Monitoring Steps

• Monitor JFSC website, AML/CFT/CPF Handbook updates, and new guidance (expected in coming months).
• Keep Board/senior management informed and obtain sign-off on implementation.
• Prepare for potential JFSC supervisory focus during 2026/2027 examinations.
• Review annually (or on trigger events) in line with risk-based approach.

Conclusion

1. This Order introduces targeted but material changes, particularly around reliance on third parties. Early action on the reliance review and MLCO assessment will minimise disruption.
2. If your firm has significant reliance arrangements or exposure to FATF-listed jurisdictions, allocate resources promptly.
3. Should you require a detailed gap-analysis template, sample policy wording, or assistance mapping specific reliance relationships, please provide additional details about your firm’s size, business lines, and current arrangements.
4. Comsure recommends consulting your MLCO or external AML advisor for firm-specific tailoring.

THE AMENDMENT LAW

Money Laundering (Jersey) Amendment Order 2026

Made  17 April 2026 = Coming into force in accordance with Article 10

THE MINISTER FOR EXTERNAL RELATIONS, having consulted the Jersey Financial Services Commission, makes this Order under Articles 37 and 43 of the Proceeds of Crime (Jersey) Law 1999 – 

1       Money Laundering (Jersey) Order 2008 amended

This Order amends the Money Laundering (Jersey) Order 2008.

2        Article 1 (interpretation) amended

In Article 1(1) –

(a)     after the definition “enhanced customer due diligence measures” there is inserted –

“enhanced risk state” means a country or territory in relation to which the FATF has called for the application of enhanced customer due diligence measures;

(b)     after the definition “regulated person” there is inserted –

“relevant Code of Practice”, in relation to a relevant person, means a Code of Practice –

(a)     that is issued under Article 22 of the Proceeds of Crime (Supervisory Bodies) Law; and

(b)     that applies to the relevant person in the conduct of the relevant person’s financial services business;

3        Article 7 (compliance officer) amended

(1)     After Article 7(1) there is inserted –

(1A)  The requirement to make an appointment under paragraph (1) applies unless the appointment of a compliance officer is not appropriate having regard to –

(a)     the size of the relevant person’s financial services business; and

(b)     the risk of money laundering associated with that business.

(1B)   For the purpose of paragraph (1A), the relevant person must determine what is appropriate by reference to a relevant Code of Practice.

(2)     For Article 7(2A) there is substituted –

(2A)  A relevant person must ensure that the individual appointed as compliance officer –

(a)     is appointed at senior management level in the relevant person’s financial services business; and

(b)     has timely access to all records (including the records that a relevant person must keep under Article 19) that are necessary or expedient to enable the individual to carry out the monitoring responsibilities under paragraph (3).

(3)     For Article 7(3) there is substituted –

(3)     The compliance officer must monitor whether the enactments in Jersey relating to money laundering and any relevant Code of Practice are being complied with in the conduct of the relevant person’s financial services business.

(3A)  A compliance officer may fulfil their responsibilities under paragraph (3) by using another person to support them in, or to carry out, the monitoring required under that paragraph.

(4)     In Article 7(9) –

(a)     for “pursuant to” there is substituted “under”;

(b)     for “function described in” there is substituted “responsibilities under”.

4        Article 11 (policies, procedures and training to prevent and detect money laundering) amended

(1)     In Article 11(3)(d), for “a country or territory in relation to which the FATF has called for the application of enhanced customer due diligence measures” there is substituted “an enhanced risk state”.

(2)     In Article 11(9)(b), “issued under Article 22 of the Proceeds of Crime (Supervisory Bodies) Law” is deleted.

5        Article 11A (additional requirements for financial groups and DNFBP groups) amended

In the heading to Article 11A, “and DNFBP groups” is deleted.

6        Article 12A inserted

In Part 3, before Article 13 there is inserted –

12A   Meaning of relevant connection

(1)     In this Part, the government or a public authority of an enhanced risk state has a relevant connection with the enhanced risk state.

(2)     In this Part, a person has a relevant connection with an enhanced risk state if –

(a)     the person is a foreign politically exposed person (as defined in Article 15A) in relation to that state;

(b)     the person is resident in that state;

(c)     the person has an address for business in that state; or

(d)     the person is a customer, and the source of the customer’s funds is or derives from –

(i)      assets held in that state by the customer or by any person on behalf of the customer; or

(ii)      income arising in that state.

(3)     In paragraph (2)(d), “customer” has the same meaning as in Article 15(2).

7        Article 15 (circumstances for applying enhanced customer due diligence measures) amended

(1)     In Article 15(1)(c), for “a country or territory (an “enhanced risk state”) in relation to which the FATF has called for the application of enhanced customer due diligence measures” there is substituted “an enhanced risk state”.

(2)     For Article 15(2), there is substituted –

(2)     For the purposes of paragraph (1)(c) a “customer” includes any of the following –

(a)     a beneficial owner or controller of the customer;

(b)     a third party for whom the customer is acting;

(c)     a beneficial owner or controller of a third party described in sub-paragraph (b);

(d)     a person acting, or purporting to act, on behalf of the customer.

8        Article 16 (reliance on relevant person or person carrying on equivalent business) amended

(1)     For the heading to Article 16 there is substituted –

16      Reliance on obliged persons

(2)     In Article 16(1), in sub-paragraph (a) of the definition “reliance identification measures”, for “Article 3(2)(a), (aa), (b) or (c)” there is substituted “Article 3(2)”.

(3)     After Article 16(6) there is inserted –

(6A)  The relevant person must obtain a new assurance under paragraph (4) or (5) at intervals determined by the relevant person according to the relevant person’s knowledge of the customer, including the customer’s business and risk profile.

(4)     Article 16(8) and (9) are deleted.

(5)     After Article 16(9) there is inserted –

(9A)  A relevant person who relies on an obliged person under paragraph (2) must immediately cease to rely on the obliged person if any of the circumstances in paragraph (9B) apply.

(9B)   The circumstances are –

(a)     the person on whom the relevant person was relying as an obliged person under paragraph (2) is no longer an obliged person;

(b)     the obliged person no longer consents to the reliance;

(c)     the relevant person becomes aware that the obliged person has not applied or is no longer applying the reliance identification measures in relation to the customer;

(d)     the obliged person does not immediately provide the relevant person with the information obtained from applying the reliance identification measures;

(e)     the obliged person does not, without delay, provide the relevant person with the evidence obtained from applying the reliance identification measures when requested by the relevant person under paragraph (7);

(f)      the obliged person does not, without delay, give a new assurance under paragraph (4) or (5) when requested by the relevant person;

(g)     the relevant person becomes aware that the obliged person no longer meets the requirements of this Part.

(6)     For Article 16(11)(c) there is substituted –

(c)     the obliged person has a relevant connection with an enhanced risk state.

9        Article 16A (reliance on persons in same financial group as relevant person) amended

(1)     In Article 16A(1) –

(a)     after the definition “external person” there is inserted –

“financial group” includes a group of persons falling within Schedule 2, Part 3 to the Law if there is, in relation to the group, a parent company or other legal person that exercises control over every member of the group;

(b)     in the definition “similar identification measures”, for “Article 3(2)(a), (aa), (b) and (c)” there is substituted “Article 3(2)”.

(2)     After Article 16A(2)(d) there is inserted –

(da)    any higher risk of money laundering arising from the external person’s connection with a country or territory outside Jersey is adequately mitigated by the policies and procedures that are maintained by the financial group and applied by the external person;

(3)     After Article 16A(6) there is inserted –

(6A)  The relevant person must obtain a new assurance under paragraph (4) or (5) at intervals determined by the relevant person according to the relevant person’s knowledge of the customer, including the customer’s business and risk profile.

(4)     Article 16A(7) and (8) are deleted.

(5)     After Article 16A(8) there is inserted –

(8A)  A relevant person who relies on an external person under paragraph (2) must immediately cease to rely on the external person if any of the circumstances in paragraph (8B) apply.

(8B)   The circumstances are –

(a)     the person on whom the relevant person was relying as an external person under paragraph (2) is no longer an external person;

(b)     the external person no longer consents to the reliance;

(c)     the relevant person becomes aware that the external person has not applied or is no longer applying the reliance identification measures in relation to the customer;

(d)     the external person does not immediately provide the relevant person with the information obtained from applying similar identification measures;

(e)     the external person does not, without delay, provide the relevant person with the evidence obtained from applying similar identification measures when requested by the relevant person;

(f)      the external person does not, without delay, give a new assurance under paragraph (4) or (5) when requested by the relevant person; or

(g)     the external person otherwise fails to comply with the requirements of this Part.

(6)     For Article 16A(10)(c) there is substituted –

(c)     the external person has a relevant connection with an enhanced risk state.

10      Citation and commencement

(1)     This Order may be cited as the Money Laundering (Jersey) Amendment Order 2026.

(2)     Articles 1, 2, 3 and 10 come into force on 30 June 2026.

(3)     The rest of the Order comes into force on 31 October 2026.

 

Deputy M.E. Millar of St. John, St. Lawrence and Trinity

for and on behalf of

Minister for External Relations

https://www.jerseylaw.je/laws/enacted/Pages/RO-077-2026.aspx