Jersey – you must registration as an AMLSP before 30 June 2023.
In Jersey, the Proceeds of Crime Law has been updated to include a recast Schedule 2, which now includes the following activities in the definition of a 'financial services business' (and thus within the scope of the AML Regime):
- Financial Institutions: This includes activities such as lending, investing, fund services, security services, portfolio management, and investing, administering, or managing funds/money.
- Designated Non-Financial Businesses and Professions: This includes lawyers, accountants, real estate agents, and trust and company service providers.
- Virtual Assets Service Providers: This includes token exchanges and other entities providing custodial, administrative, or other services in respect of virtual assets.
- Express Trusts.
What to do
The JFSC has published guidance on Schedule 2, namely the Guidelines on interpretation Article 36 of the Proceeds of Crime (Jersey) Law 1999
- The guide emphasises that the activities are intended to be interpreted broadly and which notes that businesses should err on the side of caution, favouring inclusion over exclusion.
- An entity may adhere to the new obligations by registering with the JFSC and fulfilling for itself the various obligations under the AML Regime, including appointing an MLCO and MLRO.
- Alternatively, an entity that receives corporate administrative support from a regulated business may fulfil its obligations through outsourcing to its regulated service provider, in this context known as the Anti-Money Laundering Service Provider ("AMLSP").
Anti-Money Laundering Service Provider ("AMLSP").
- The responsibility to comply with the AML Regime will ultimately lie with the entity itself. However, the AMLSP will be able to take away much of the compliance burden and provide individuals as the MLRO and MLCO to the entity. The entity must ensure the appointment of an AMLSP is reasonable, and the terms by which the AMLSP will provide services to the entity should be clearly considered by both sides at the outset and during the arrangement – and all arrangements should be formally documented.
- Some entities, such as non-professional trustees, will not be able to benefit from appointing an AMLSP, but they may wish to outsource some of the compliance functions to third parties.
- Service providers intending to act as AMLSPs Service providers will have to seek permission from the JFSC if they wish to perform the role of an AMLSP. This application will include identifying the entities which the AMLSP is going to be acting for and the names of the individuals who will be acting as the MLROs and MLCOs, among other things.
- It is likely that prospective AMLSPs will need to revise their own policies and procedures and carry out further risk assessments to cover the new provision of services. The MLROs and MLCOs must be employed by the AMLSP or a member of its group to act for entities.
- The AMLSP must demonstrate on an ongoing basis that, as well as the other obligations, the MLRO will be provided with reports of any suspicious activity, and as mentioned prior, all arrangements should be formally documented.
- Prospective AMLSPs must submit applications promptly to ensure the JFSC can consider the application before 30 June 2023.
AMLSP FAQs, Guidance and Legal Notices links to reading and forms:-
Guidelines on interpretation Article 36 of the Proceeds of Crime (Jersey) Law 1999
- Anti-Money Laundering Services Provider (AMLSP) FAQs Guidelines and Legal Notices https://www.jerseyfsc.org/industry/sectors/financial-crime-schedule-2-business/anti-money-laundering-services-provider-faqs-guidelines-and-legal-notices/
- Guide to Anti-Money Laundering Services Provider Application Process https://www.jerseyfsc.org/media/6437/guidance-for-amlsp-workbooks.pdf
- Guidance for AMLSP workbooks https://www.jerseyfsc.org/media/6441/guidance-for-amlsp-workbooks.pdf
- AMLSP key person application https://www.jerseyfsc.org/media/6428/amlsp-key-person-application-workbook.xlsx
- AMLSP appointment to relevant person workbook https://www.jerseyfsc.org/media/6429/amlsp-appointment-to-relevant-person-workbook.xlsx
- Guidelines and Legal Notices
- Guidelines on interpretation of - Article 36 of the proceeds of crime(Jersey)Law 1999 (January 2023) https://www.jerseyfsc.org/media/6448/guidelines-on-interpretation-of-article-36.pdf
- Notice issued under Article 9A (4) of the Money Laundering (Jersey) Order 2008 (April 2023) https://www.jerseyfsc.org/media/6604/9a-4-notice.pdf
- Notice issued under Article 10 of the Money Laundering Jersey Order (January 2023) https://www.jerseyfsc.org/media/6435/amlsp-article-10-notice.pdf
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