Jersey sanction risk - indirect links - Article 2A and Schedule 2 of the Sanctions and Asset-Freezing (Jersey) Law 2019 

To follow up on the following, Feedback on enhancements to the AML/CFT/CPF Handbook Issued: 27 November 2025, the JFSC has reiterated the statutory requirements under Article 2A and Schedule 2 of the Sanctions and Asset-Freezing (Jersey) Law 2019 (Sanctions and Asset Freezing Law).

Source - https://www.jerseyfsc.org/media/bzlk5pio/feedback-on-enhancements-to-the-aml-cft-cpf-handbook.pdf#page=17

Guidance

• The following is COMSURE’s guidance note summarising Article 2A and Schedule 2 of the Sanctions and Asset-Freezing (Jersey) Law 2019, 

Purpose:

• To clarify statutory requirements for determining ownership and control under Jersey’s sanctions regime, as set out in Article 2A and Schedule 2 of the Sanctions and Asset-Freezing (Jersey) Law 2019 (SAFL).

Article 2A – Definitions

Article 2A provides legal definitions for:

• Owned
• Held
• Controlled
• Directly or indirectly

These definitions apply when assessing whether a person or entity is subject to sanctions obligations. They ensure that asset-freeze measures capture not only direct ownership but also indirect control through complex structures.

Schedule 2 – Interpretation Rules

Schedule 2 sets out detailed interpretive rules for applying Article 2A, including:

• Ownership thresholds: 50% or more shareholding or voting rights.
• Control indicators: Ability to appoint/remove directors or exercise dominant influence.
• Indirect control: Through chains of ownership, trusts, or nominee arrangements.

Does Jersey adopt the UK 50:50 rule?

Jersey implements all UK sanctions regimes under the Sanctions and Anti-Money Laundering Act 2018 (SAMLA) through the Sanctions and Asset-Freezing (Jersey) Law 2019 and related Orders.

This means Jersey applies the same ownership and control principles as the UK, including the “50% rule” for determining whether an entity is subject to financial sanctions. [jerseyfsc.org], [jerseyfsc.org]

What is the UK 50% Rule?

The UK 50% rule (sometimes called the “ownership and control rule”) means:

• Any entity owned, directly or indirectly, 50% or more by one or more designated persons is itself treated as a sanctioned entity, even if it is not listed on the UK Sanctions List. [windward.ai], [symphonyai.com]
• Ownership can be aggregated:
• Example: Two sanctioned individuals each own 25% → combined 50% → entity is sanctioned.
• The UK also considers “control” beyond ownership:
• Significant influence, voting rights, or ability to appoint/remove directors can trigger sanctions exposure even below 50%. [linkedin.com]

Key Compliance Implications

• Screening must go beyond listed names: Entities not on the sanctions list may still be sanctioned under the 50% rule.
• Indirect ownership matters: Through chains of companies, trusts, or nominee arrangements.
• Control indicators: Even if ownership is <50%, control through governance rights can make an entity sanctioned under UK (and therefore Jersey) law.

These provisions align Jersey’s framework with UK sanctions regulations and FATF standards.

Compliance Obligations

• Screening: Firms must identify sanctioned persons/entities, considering direct and indirect control.
• Beneficial Ownership: Systems must capture layered structures and nominee arrangements.
• Documentation: Maintain evidence of ownership/control assessments for audit and regulatory review.

Practical Steps

1. Update sanctions screening tools to include ownership/control logic.
2. Train staff on Article 2A definitions and Schedule 2 rules.
3. Review high-risk structures (trusts, layered companies) for indirect control risks.

Official Sources

• JFSC – Sanctions and Asset-Freezing Law [jerseyfsc.org]
• https://www.jerseyfsc.org/industry/international-co-operation/sanctions/sanctions-and-asset-freezing-law/
• JFSC – Financial Sanctions Practical Guidance [jerseyfsc.org]
• https://www.jerseyfsc.org/industry/international-co-operation/sanctions/financial-sanctions-practical-guidance/
• JFSC – Sanctions Overview [jerseyfsc.org]
• https://www.jerseyfsc.org/industry/international-co-operation/sanctions/
• https://windward.ai/blog/the-fifty-percent-rule-in-maritime-sanctions-compliance-explained/