Warning – The JFSC proposals for AML “exempt” businesses may result in lots of hard work for TCSBs/FSBs
The JFSC has issued a further consultation/proposal for financial services businesses that offer services to AML “exempt” businesses that take Jersey industry [TCSBs/FSBs] on to the next step.
The next step is a transitional period, which is six months commencing January 2023; the following must register with the JFSC
- Previously Exempt Supervised Person [possibly a TCSBs/FSBs customer[s] and
- Designated Service Providers [possibly TCSBs/FSBs]
The consultation closes on 14 October 2022 is here:-
What does this mean? Comsure has added a summary of matters below.
THE SCOPE OF THE PROPOSALS IS BROAD-RANGING AND SUMMARISED BELOW:-.
The consultation paper [if/when accepted] will materially impact individuals and organisations [e.g. TCSBs/FSBs and its customers] if they:-
- Conduct, as a business, activities or operations within the recast Schedule 2 [recast by the Proceeds of Crime (Amendment No. 6) (Jersey) Law 2022] and
- ARE NOT currently subject to AML/CFT obligations OR are presently exempt from registration with the JFSC - A new definition and acronym capture these scenarios
- “Previously Exempt Supervised Person” – PESPs
- By way of example
- A TCSBs/FSBs customer who undertakes a recast schedule 2 activities, e.g. lending
- The recast Sch 2 is here https://www.jerseylaw.je/laws/enacted/Pages/L-25-2022.aspx]
There are DRAFT GUIDELINES on the interpretation of recast schedule 2 activities [e.g. lending]; see here:-
For TCSBs/FSBs [and if it has PESPs], it will have the following choices:-
- If the TCSBs/FSBs Intend to provide Designated Service Provider [DSP] services to their existing customers, the TCSBS/FSBS will need to register as a DSP.
- Please note is TCSBs/FSBs choose to be a DSP, there are new codes to follow – see the Draft Codes of Practice and Guidance for Designated Service Provide
- If the TCSBs/FSBs Do not intend to provide DSP services –
- It will need to consider the scope of services it will provide to its existing PESP customers and
- Should make arrangements to support their current PESP customers in complying with their ongoing AML/CFT obligations.
THE JFSC MESSAGE SAYS:-
- The JFSC has launched a follow-on consultation on its work to align Jersey’s anti-money laundering and counter-terrorist financing (AML/CFT) regime to International Standards.
- THE JFSC is asking for feedback on its proposals which take forward earlier consultations in 2021/22
- December 2021 =
- Feedback 2022
- The JFSC proposals will impact
Regulated financial services businesses that provide services to “exempt” businesses
Others, including businesses who currently utilise the AML/CFT exemptions, which are falling away and
Virtual Asset Service Providers.
- The JFSC is seeking feedback on the consultation from all interested parties by 14 October 2022.
- Any immediate concerns in this regard, please contact
- Follow-on consultation on AML/CFT scope exemptions
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