AML/CFT/CPF Guidance for DRR

Summary

This is GFSC guidance explaining how individuals registered under the Bailiwick of Guernsey's director registration regime (DRR) must meet their AML/CFT/CPF obligations under Schedule 3 of the Criminal Justice (Proceeds of Crime) (Bailiwick of Guernsey) Law, 1999. Because registered directors' activities are limited to holding a small number of directorships (no more than six), they are subject to a reduced set of obligations compared to other regulated and prescribed businesses, and are exempt from business/customer risk assessments and formal policies and procedures.

• Obligations that apply: Understanding money laundering, terrorist financing and proliferation financing risk; customer due diligence; enhanced due diligence for higher risk relationships; due diligence for low risk relationships; monitoring transactions and activity; reporting suspicion; training; record keeping; and compliance with UN, UK and Guernsey sanctions.
• Obligations that are disapplied: Formal risk understanding/assessment and mitigation (Schedule 3 paragraph 2), risk assessments (paragraph 3), introduced business (paragraph 10), and compliance and corporate responsibility (paragraph 15).
• Customer due diligence focus: Identifying and verifying the company (the registered director's customer), the individuals authorised to act on its behalf, and its beneficial owner(s), including understanding the ownership and control structure.
• Higher risk referral: Registered directors serving companies resembling private wealth management or family office structures, or connected to foreign PEPs, Iran, North Korea or Myanmar, should instead consult the Handbook on Countering Financial Crime for fuller AML/CFT/CPF requirements.

The guidance does not itself impose new legal deadlines; it clarifies existing statutory duties under Schedule 3 and the Handbook, which remain the definitive legal texts, and includes an appendix of higher and lower risk factors to help registered directors assess directorship risk.

Key obligations

• Registered directors must have regard to the Handbook, Commission notices and the National Risk Assessment to determine whether a directorship is a high-risk or low-risk relationship.
• Registered directors must identify the company (customer) and verify its identity using documents such as the incorporation certificate and register of directors.
• Registered directors must identify persons authorised to act on behalf of the company and verify their identity and authority to act.
• Registered directors must identify the beneficial owner(s) of the company and take reasonable measures to verify their identity and understand the ownership and control structure, looking through corporate or trust structures where relevant.
• Registered directors must apply enhanced due diligence where a directorship presents higher money laundering, terrorist financing or proliferation financing risk.
• Registered directors must monitor the company's transactions and other activity.
• Registered directors must report suspicion of money laundering, terrorist financing or proliferation financing.
• Registered directors must undertake AML/CFT/CPF training.
• Registered directors must keep records in accordance with Schedule 3 requirements.
• Registered directors must comply with UN, UK and Guernsey sanctions regimes.

Applies to

registered directors (director registration regime)