The JFSC update its website to help with the “Prescribed NPO” Order & Codes

The Prescribed NPO Order came into force on 1 January 2023.

If your NPO falls within the definition of a Prescribed NPO it will be required to meet certain additional requirements. The additional requirements are detailed within the Non-Profit Organisations Order, and formalise measures that may already be in place as part of your NPO’s good governance.

A brief outline of the requirements as stated in the Non-Profit Organizations (Jersey) Order 2008 can be seen below:

• Article 2 -To prepare an annual financial statement
• Article 3 -To have appropriate accounting systems and controls in place
• Article 4 -To keep records of owners, controllers etc. sufficient to identify them
• Article 5 -To keep a record of significant donors
• Article 6 -Take reasonable steps to identify other NPOs with whom your NPO may be working, the beneficiaries, activities, and the nature of the relationship

The following links will direct you to the Jersey Legal Information Board website, where Jersey laws are published.

• Non-Profit Organizations (Jersey) Law 2008 = https://www.jerseylaw.je/laws/current/Pages/15.430.aspx
• Non-Profit Organizations (Jersey) Order 2008 = https://www.jerseylaw.je/laws/enacted/Pages/RO-110-2022.aspx

NPOs only need to register if they meet the f­­­ollowing definition:

• A legal person or arrangement or organisation that primarily engages in RAISING OR DISBURSING* funds for purposes such as
• Charitable, Religious, Cultural, Educational, Social or
• Fraternal Purposes, [https://www.collinsdictionary.com/us/dictionary/english/fraternal-society]  or
• For the carrying out of other types of good works?
• Definitions on the above[*]
• *Raising –
• Funds given to the NPO but does not include income earned on the funds of the NPO or amounts paid to the NPO by persons to become or remain members of the NPO
• *Disbursing –
• Does not include the disbursement of funds paid to the NPO by persons to become or remain members of the NPO if those funds are applied in a way that only benefits members of the NPO.
• A disbursement also does not include a payment for goods and services. A payment is when you send funds for a specific agreed value for goods or services, where a disbursement is a transfer of money to a beneficiary to fulfil the objects of the organisation”.

Although only a very limited number of NPOs will be considered ‘prescribed” the JFSC have updated

1. Its website and AML/CFT/CPF Handbook to assist the NPO sector with these changes [see screen shot below]
2. https://www.jerseyfsc.org/industry/sectors/non-profit-organisations/
3. Its AML handbook (with a new Section 17), which sets out guidance and Codes of Practice to support prescribed NPOs.
4. Handbook-section-17.pdf (jerseyfsc.org)
5. https://www.jerseyfsc.org/media/6229/handbook-section-17.pdf

The above [no1] non-profit organisations page [image below] has been updated with new information and guidance for NPOs, including what defines a Prescribed NPO.