JFSC updated sanctions guidance, last revised on 8th September 2025 – you may have missed it.

You may have missed this update, as it's not shown in the JFSC news.

Synopsis of JFSC Financial Sanctions Practical Guidance (Issued: 01 January 2011, Last Revised: 08 September 2025)

The Jersey Financial Services Commission (JFSC) provides comprehensive guidance to help institutions in Jersey comply with financial sanctions legislation.

This guidance applies to all natural and legal persons located, operating, or incorporated in Jersey, aiming to assist in developing effective policies and procedures to meet legal obligations under sanctions regimes, particularly those aligned with UN and UK sanctions.

Key Points:

1. Scope and Purpose:
• The guidance is designed to help institutions establish proportionate systems and controls to minimise the risk of breaching financial sanctions.
• It emphasises tailoring systems to the institution’s business model, customer base, and specific vulnerabilities to sanctions risks.
2. Core Compliance Requirements:
• Pre-Screening, Screening, and Post-Screening:
• Screen customers at onboarding and periodically against the UK’s OFSI Consolidated List and UK Sanctions List.
• Include directors, beneficial owners, trustees, and third-party payees in screening.
• Use skilled staff and consider variables like alternate spellings or aliases to improve accuracy.
• Investigate potential matches, escalating unresolved cases to senior management and notifying the Minister for External Relations if necessary.
• Actions on Confirmed Matches:
• Freeze funds and block financial services for designated persons.
• Report matches to the Minister, but file a Suspicious Activity Report (SAR) only if there’s suspicion of criminal activity beyond sanctions violations.
• Ongoing Monitoring:
• Maintain up-to-date policies, conduct independent audits, and ensure staff training is current.
• Keep an audit trail of screening and decisions.
3. Policies and Procedures:
• Institutions must have written, regularly reviewed sanctions policies, with senior management oversight.
• Policies should be clear, accessible, and include escalation procedures, screening frequency, and local jurisdictional requirements.
4. Staff Training:
• Training should be ongoing, role-specific, and cover sanctions risks and procedures.
• Good practices include regular updates and testing staff understanding; poor practices include a lack of training or failure to communicate policy changes.
5. Risk Assessment:
• A risk-based approach to sanctions screening is acceptable if properly documented and justified.
• Assess risks based on customer profiles, transaction complexity, geographic locations, and intermediaries.
• Consider risks from controlled goods (e.g., dual-use items) and proliferation financing, especially in sectors like maritime shipping or import-export.
6. Screening Controlled Goods and Delivery:
• Screen for goods and services linked to proliferation (e.g., nuclear, chemical, or biological weapons).
• Use tools like the UK Strategic Export Control Lists and OGEL Checker to identify controlled items.
• Ensure awareness of designated vessels and trade-related sanctions risks.
7. Ownership and Control:
• Sanctions apply to entities owned or controlled by designated persons (e.g., >50% shares, voting rights, or influence over affairs).
• Conduct case-by-case evaluations to determine ownership/control, especially for unlisted entities.
8. Reporting Obligations:
• Relevant financial institutions (e.g., banks, DNFBPs, VASPs) must report to the Minister if they suspect dealings with a designated person or sanctions breaches.
• Reports should include details about the designated person, funds, or economic resources involved.
• Special reporting forms apply for Russia and Belarus sanctions.
9. Licensing:
• A license from the Minister is required to perform actions prohibited by sanctions (e.g., releasing frozen funds).
• Jersey General Licences allow specified activities without individual applications.
10. International Obligations:
• Institutions must be aware of sanctions in all jurisdictions where they operate, especially U.S. OFAC sanctions, which have extraterritorial reach (e.g., for U.S. citizens, USD transactions, or U.S.-related operations).
• Failure to comply with foreign sanctions (e.g., OFAC) may result in liability.
11. Good vs. Poor Practices:
• Good Practices: Clear allocation of responsibility, regular training, fuzzy matching in screening, and robust risk assessments.
• Poor Practices: Assuming exemptions for small payments, neglecting audits, or relying on outdated lists.
12. Self-Assessment Questions:
• Institutions are encouraged to evaluate their sanctions compliance, such as how they monitor performance, ensure intermediary screening, and stay updated on sanctions changes.

Appendices:

• Appendix A: Lists examples of information to report to the Minister, including details about designated persons, frozen funds, and credits to frozen accounts.
• Appendix B: Defines key terms like “designated person,” “financial services,” “funds,” and “economic resources” under the Sanctions and Asset-Freezing (Jersey) Law 2019 (SAFL).

Additional Resources:

• Guidance from UK OFSI, Wolfsberg Group, and JFSC’s feedback reports (e.g., 2014 banking sector, 2023 sanctions screening).
• Tools like the UK Strategic Export Control Lists and OFAC search tools for compliance.

This synopsis captures the essential elements of the JFSC’s guidance, emphasising proactive compliance, robust screening, and awareness of both local and international sanctions obligations.

For further details, institutions should consult the complete guidance on the JFSC website or call COMSURE or seek legal advice.

Source

https://www.jerseyfsc.org/industry/international-co-operation/sanctions/financial-sanctions-practical-guidance/