The JFSC has added a 14TH source of risk to its D2 Country List.

Following a Jersey government update [see below], the JFSC has added a new source of risk data [NO14] to the D2 List –

• Source 14 - TF Operational Working Group-TF risks.
• https://www.gov.je/Industry/Finance/FinancialCrime/Pages/MoneyLaunderingTerroristFinancing.aspx?true=boom#anchor-1
• https://www.jerseyfsc.org/industry/financial-crime/amlcftcpf-handbooks/appendix-d2-countries-and-territories-identified-as-presenting-higher-risks/

The following countries have been added to this list:

1. Cameroon ›
2. Democratic People’s Republic of Korea (DPRK) ›
3. Haiti ›
4. Iran ›
5. Kenya ›
6. Mali ›
7. Mozambique ›
8. Myanmar ›
9. Nigeria ›
10. Russia ›
11. Somalia ›
12. South Sudan ›
13. Syrian Arab Republic ›
14. Yemen

Jersey Government Guidance on countries with a higher risk of facilitating terrorist financing [extracted statements].

As part of the Government of Jersey's programme of combatting financial crime, guidance has been produced on specific countries that may present a higher risk of facilitating terrorist financing (TF). This is a key area as Jersey implements its obligations under international standards set by the Financial Action Task Force (FATF).

The Jersey Government update outlines the methodology for creating a list of higher-risk TF countries.

• The list identifies specific countries where greater care should be taken when forming business relationships or undertaking one-off transactions with persons that have, or are associated with, a connection to them. The list represents the output of the recent work focussing on the national threat as part of the TF risk assessment work. It is published in line with paragraph 7.5.8 of the Update on Terrorist Financing National Risk Assessment, published May 2023.
• https://www.gov.je/SiteCollectionDocuments/Industry%20and%20finance/Terrorist%20Financing%20National%20Risk%20Assessment%20update%202023.pdf
• To maintain this list as a helpful advisory tool, it will be updated regularly. However, there may also be a need to update it ad hoc due to specific events.

The publication of this list is in line with the recommendations of the overall National Risk Strategy, the rolling programme of National Risk Assessments, and other measures such as the Jersey Finance series of seminars that focus on specific countries, including those with a recognised higher risk profile.

• National Risk Strategy, https://www.gov.je/Industry/Finance/FinancialCrime/NationalRiskAssesmnents/Pages/NationalStrategyCombattingFinancialCrime.aspx
• National Risk Assessments https://www.gov.je/Industry/Finance/FinancialCrime/NationalRiskAssesmnents/Pages/index.aspx

Terrorist financing methodology for determining countries which may present a higher TF risk.

Terrorist financing can affect any country. Jersey is no exception. Terrorists need money to finance their operations, and to achieve this, they attempt to abuse financial services and the regulated sectors' products and services, delivery channels, etc. The FATF Terrorist Financing Risk Assessment Guidance refers to adhering to the Monaco (MONEYVAL) guidance.

• https://www.fatf-gafi.org/en/publications/Methodsandtrends/Terrorist-financing-risk-assessment-guidance.html

The method seeks to understand better and apply the different challenges that IFCs, generally with a low domestic terrorism risk, may face.

Against this background, a Jersey TF operational working group utilised nine open-source indices and several data sets to determine the final list of countries. This has resulted in a repeatable methodology that produces a relevant and publishable list of higher-risk terrorist financing countries focusing on the threat that relates to Jersey as an IFC.

The sources included the

• Jersey Terrorist Financing Cross Border Threat Assessment 2023, and
• FATF mutual evaluation reports list,
• FATF jurisdictions under increased monitoring and
• The Basel AML Index, https://index.baselgovernance.org/
• The data sets included the Egmont Group and several local and UK sources (including the Financial Intelligence Unit's SARs data and that from other Island agencies).

List of terrorist financing higher risk jurisdictions

This list was prepared in September 2023:

Read the complete Jersey government statements here -  https://www.gov.je/Industry/Finance/FinancialCrime/Pages/MoneyLaunderingTerroristFinancing.aspx