JFSC Feedback statement: Schedule 2 Guidelines are delayed as there is more to do

Since 2015, the JFSC has been reviewing the Schedule 2 framework with the Government of Jersey as part of its ongoing efforts to reduce regulatory burdens while maintaining high standards in combating financial crime.

In the Schedule 2 Guidelines consultation, the JFSC proposed an effective date of 30 April 2026. 

However, the JFSC now says that, in light of the proposed legislative and Handbook changes, JFSC will not be proceeding with this date. The JFSC says:-

• It will take the amended guidelines forward as part of the wider package of reforms.
• It will publish a detailed paper to provide more information on the feedback JFSC received and its response. 

The current proposals are summarised as: 

1. Introducing a new Corporate Non‑Professional Trustees Order
1. To clarify that where structures are closely held, non-commercial, pure family arrangements, those structures will be treated as “non‑professional” in that they are not conducting their activities as a business.
2. Corporate trustees who meet the relevant criteria are proposed to be made subject to Money Laundering Order obligations in line with the current Proceeds of Crime (Duties of Non-Professional Trustees) (Jersey) Order 2016 and will be required to notify the JFSC. 
2. Amendments to the Money Laundering Order
1. To streamline the AMLSP regime, ensuring that where the AMLSP appropriately fulfils and performs the relevant person’s obligations, there is no need to reperform or duplicate work.  
3. Amendments to the Handbook
1. To reflect the legislative changes above.
4. These will focus on the AMLSP chapter and clarify obligations in practice for AMLSPs versus their customers, as well as provide practical guidance on their delivery. 
1. Amendments to the guidelines to take account of these changes, as well as reflecting the wealth of feedback received from the JFSC consultation 

What does the JFSC say

Throughout December 2025 and January 2026, the JFSC says:-

• It consulted on revised guidelines for the interpretation of Article 36(2) of the Proceeds of Crime (Jersey) Law 1999.
• Proposed changes aim to make the guidelines more accessible and improve the consistency of their application across the industry.    
• It received an overall positive response from stakeholders, with the majority supporting the new guidelines approach.
• Respondents also requested further detail in some areas and strongly called for a different approach to corporate trustees, which would require legislative change.
• For it to respond to this feedback, it has said it will not be implementing the revised guidelines in April as originally planned.
• It  will continue to work with the government and the industry working group on a wider package of reforms, which is proposed to include:
• A new Corporate Non-Professional Trustees Order, 
• Which will clarify that, in limited circumstances, some corporate trustees are considered “non-professional”, in that they are not conducting their activities as a business
• Changes to the Money Laundering (Jersey) Order 2008, 
• To reduce the compliance burden on those (including corporate trustees) using an anti-money laundering services provider (AMLSP)   
• Consequential changes to JFSC AML/CFT/CPF Handbook 
• To give effect to these legislative changes
• Further changes to the guidelines 
• To reflect responses to the consultation and align with the other legislative and Handbook changes

AFTER THE UPCOMING JERSEY ELECTION

• The government and the JFSC will consult on the proposed package of reforms after the upcoming election period.

BACKGROUND ON THE JFSC CONSULTATION

 JFSC consultation on the guidelines ran for eight weeks from 8 December 2025 to 30 January 2026. 

The revised guidelines aim to improve clarity and usability by:  

• Introducing structured ‘Schedule 2 gateways’ – a three-part test (focusing on activity, ‘as a business’, and Jersey nexus) to determine whether registration is required 
• Providing targeted guidance on complex areas to reduce ambiguity and promote consistency  
• Revising interpretative guidance for specific Schedule 2 activities, notably fund and security services activities, including to future-proof the guidelines, considering planned changes to the Control of Borrowing regime 
• Including existing guidance on the meaning of ‘in or from within Jersey’ as an annex in response to industry feedback

As well as seeking feedback from the industry on the revised guidelines, JFSC 

• Asked for views on the benefits of publishing certain information relating to Schedule 2 businesses on the JFSC website to promote transparency.

The JFSC received

• 43 responses to the consultation, including responses from trade bodies and Jersey Finance.
• Through Jersey Finance, 10 individual endorsements of the Jersey Association of Trust Companies’ submission.  

CONSULTATION feedback KEY THEMES

A majority of respondents were positive and supported JFSC's approach to the revised guidelines, acknowledging the enhanced clarity and improved structure of the framework.

There were also some key areas where respondents sought further work or a different approach: 

1. Corporate trustees – a strong call for further clarity, particularly on the application of the ‘as a business’ gateway and the need for greater certainty for such entities 
2. ‘as a business’ gateway – JFSC received several suggestions on improving the wording of the gateway, in particular, the use of the word ‘professional’ in the text  
3. Effective date – respondents emphasised the need for sufficient lead‑in time following publication of the final guidelines and requested that implementation be pushed back beyond April 2026 
4. Intragroup activities – further clarity sought on how intragroup arrangements should be treated for Schedule 2 purposes 
5. Register of Schedule 2 entities – views were mixed; while some supported the concept, others raised confidentiality, privacy and competitiveness concerns 

THE CURRENT PROPOSALS ARE SUMMARISED AS: 

5. Introducing a new Corporate Non‑Professional Trustees Order
1. To clarify that where structures are closely held, non-commercial, pure family arrangements, those structures will be treated as “non‑professional” in that they are not conducting their activities as a business.
2. Corporate trustees who meet the relevant criteria are proposed to be made subject to Money Laundering Order obligations in line with the current Proceeds of Crime (Duties of Non-Professional Trustees) (Jersey) Order 2016 and will be required to notify the JFSC. 
6. Amendments to the Money Laundering Order
1. To streamline the AMLSP regime, ensuring that where the AMLSP appropriately fulfils and performs the relevant person’s obligations, there is no need to reperform or duplicate work.  
7. Amendments to the Handbook
1. To reflect the legislative changes above.
8. These will focus on the AMLSP chapter and clarify obligations in practice for AMLSPs versus their customers, as well as provide practical guidance on their delivery. 
1. Amendments to the guidelines to take account of these changes, as well as reflecting the wealth of feedback received from the JFSC consultation 

Next steps

• JFSC remain committed to delivering an approach that is applied consistently across industry while ensuring continued alignment with Jersey’s international obligations.  
• In light of the feedback on corporate trustees and our ongoing engagement with the Schedule 2 industry working group, JFSC is working with the government on further reforms to Schedule 2.
• This proposed package of measures will be subject to further work and public consultation.

Source

https://www.jerseyfsc.org/news-and-events/feedback-statement-schedule-2-guidelines/