Instruction (Number 01/2017) for Financial Services Businesses

Summary

This Instruction, issued by the Guernsey Financial Services Commission under section 49(7) of the Criminal Justice (Proceeds of Crime) (Bailiwick of Guernsey) Law, 1999, directs financial services businesses on how to treat business connections with jurisdictions identified by the FATF as having AML/CFT deficiencies, plus certain jurisdictions of specific concern to the Commission. It repeals and replaces the prior Instruction Number 02/2016.

• FATF Public Statement jurisdictions: For DPRK and Iran, businesses must apply enhanced client due diligence, exercise greater caution, and give special attention to related business relationships and transactions; for DPRK and Iran specifically, take measures to ensure correspondent relationships are not used to bypass counter-measures.
• FATF on-going compliance process jurisdictions: For jurisdictions listed in the FATF's Improving Global AML/CFT Compliance document (including Afghanistan, Bosnia and Herzegovina, Iraq, Lao PDR, Syria, Uganda, Vanuatu and Yemen), businesses must factor the jurisdiction's risk into risk assessments of business relationships and occasional transactions.
• Commission specific concerns: For Haiti, Venezuela, and a list of Central and West African countries (Cape Verde Islands, Cote d'Ivoire, Ghana, Guinea, Guinea Bissau, Liberia, Mauritania, Morocco, Nigeria, Senegal, Sierra Leone), businesses must exercise greater caution, apply enhanced customer due diligence, and give special attention to related existing and new business relationships and transactions.
• Supervisory review: The Commission will review the actions taken by each financial services business under each part of the Instruction during on-site inspections and by other means.

The Instruction is informational guidance reflecting FATF statements current as of January 2017 and does not itself set numeric deadlines; obligations apply on an ongoing basis for as long as a jurisdiction remains listed.

Key obligations

• Apply enhanced client due diligence and special attention to business relationships and transactions connected with DPRK and Iran (FATF Public Statement jurisdictions).
• For DPRK and Iran, take measures ensuring correspondent relationships are not used to bypass counter-measures and risk mitigation practices.
• Consider the risk posed by jurisdictions listed under the FATF Improving Global AML/CFT Compliance process when assessing or reviewing risk of business relationships or occasional transactions.
• Exercise greater caution and apply enhanced customer due diligence for business connected with Haiti, Venezuela, and named Central and West African countries.
• Be prepared for the Commission to review the actions taken under this Instruction during on-site inspections or other supervisory means.

Applies to

financial services businesses

Related documents

• Instruction Number 02/2017 for Financial Services Businesses repeals this document