Prescribed Businesses (Bailiwick of Guernsey) Law, 2008 (Consolidated text)

Summary

This is the consolidated text of the Prescribed Businesses (Bailiwick of Guernsey) Law, 2008, which provides the legal framework for the Guernsey Financial Services Commission's supervision of prescribed businesses (relevant businesses under the anti-money laundering regime that fall outside the main financial services licensing laws, such as certain designated non-financial businesses and professions). It sets out the Commission's information-gathering, investigation and enforcement powers, appeal rights, and related offences.

• Scope: Applies to any 'prescribed business', being a relevant business under the Criminal Justice (Proceeds of Crime) (Bailiwick of Guernsey) Law, 1999, subject to specified exclusions (eg high value dealing, casinos, small businesses, and certain paragraph 6 businesses not required to register).
• Winding up and injunctions: The Royal Court, Court of Alderney or Court of the Seneschal may, on application by the Commission, wind up a company or grant an injunction against a person carrying on a registered prescribed business, on grounds of material contravention, an offence, or the need to counter financial crime or terrorist financing.
• Information and investigation powers: The Commission may require registered prescribed businesses (and associated parties, significant shareholders, and former registered businesses for up to 6 years after deregistration) to provide information, reports and documents, and may appoint inspectors to investigate compliance.
• Enforcement powers: The Commission may issue private reprimands, discretionary financial penalties, public statements, and disqualification orders, and may seek injunctions to restrain unlawful business.
• Appeals: A person aggrieved by specified Commission decisions (information requirements, inspector appointments, notices, reprimands, penalties, public statements) may appeal to the Court within 28 days of the decision notice, on grounds including error of law, unreasonableness, bad faith, disproportionality or material factual/procedural error.
• Offences: It is an offence to fail without reasonable excuse to comply with a Commission information or document request, and separate offences apply to false or misleading information and falsification of documents during an investigation.
• Disclosure restrictions: Information obtained under the Law is subject to restrictions on disclosure, with defined exceptions permitting disclosure in certain cases.

The Law has been amended multiple times since 2008, most recently in relation to the 2023 proceeds of crime regulations affecting the scope of the exclusions in section 1, and a 2024 amendment law is referenced. Compliance officers at prescribed businesses should be aware of the Commission's broad investigatory and enforcement powers and the short 28 day window to appeal adverse decisions.

Key obligations

• Registered prescribed businesses must comply with Commission notices under section 5 requiring information, reports or documents within the time and form specified, or commit an offence.
• Prescribed businesses and associated persons under investigation must produce documents to an inspector, attend and answer questions, and otherwise give all reasonable assistance under section 6.
• A person aggrieved by a Commission decision (eg information requirement, inspector appointment, notice, private reprimand, financial penalty, or public statement) must institute any appeal within 28 days of the date of the notice of decision, by summons served on the Chairman of the Commission stating grounds and material facts relied on.
• Former registered prescribed businesses remain subject to the Commission's information and document production powers for up to 6 years after deregistration, unless the Commission directs otherwise.

Applies to

prescribed businesses, registered prescribed businesses, former registered prescribed businesses, associated parties of a prescribed business, significant shareholders of a prescribed business (where the business is a company), directors, controllers, partners, senior officers, employees or agents of a prescribed business

Deadlines

• 28 days immediately following the date of the notice of the Commission's decision: Period within which an appeal against a specified Commission decision must be instituted by summons served on the Chairman of the Commission.
• 6 years immediately after the date on which the former registered prescribed business ceased to be registered: Period for which the Commission's information and document production powers continue to apply to a former registered prescribed business, unless the Commission directs otherwise.

Related documents

• Transfer of Funds (Alderney) Ordinance, 2017 amends this document
• Transfer of Funds (Guernsey) Ordinance, 2017 amends this document
• Transfer of Funds (Sark) Ordinance, 2017 amends this document