Instruction (Number 01/2017) for Prescribed Businesses - Business from Sensitive Sources

Summary

This is a GFSC instruction to prescribed businesses (Guernsey's AML/CFT regulated non-financial businesses and professions) directing enhanced due diligence and risk-based measures toward business connected with certain higher-risk jurisdictions. It implements FATF's public statement and ongoing compliance process lists, plus jurisdictions the Commission itself flags as concerning. It repeals and replaces the prior Instruction 02/2016 and has since been superseded by a later instruction.

• FATF Public Statement countries (DPRK and Iran): Prescribed businesses must exercise greater caution, apply enhanced client due diligence, and give special attention to all new and existing business relationships and transactions connected with these countries; for DPRK and Iran additional measures are required to ensure correspondent relationships are not used to bypass counter-measures.
• FATF Improving Global AML/CFT Compliance list: For jurisdictions on this ongoing-process list (including Afghanistan, Bosnia and Herzegovina, Iraq, Lao PDR, Syria, Uganda, Vanuatu, Yemen), prescribed businesses must factor jurisdiction risk into their assessment of risk for any business relationship or occasional transaction.
• Commission-flagged concerns: Enhanced due diligence, greater caution and special attention are also required for business connected with Haiti, Venezuela, and named Central and West African countries (Cape Verde Islands, Cote d'Ivoire, Ghana, Guinea, Guinea Bissau, Liberia, Mauritania, Morocco, Nigeria, Senegal, Sierra Leone).
• Guyana removed: Guyana is noted as no longer subject to FATF's ongoing global AML/CFT compliance monitoring process.
• Supervisory follow-up: Actions taken by each prescribed business under this Instruction will be reviewed during on-site inspections and by other means as necessary.

The Instruction does not set a fixed filing deadline; it establishes an ongoing, immediate expectation that prescribed businesses apply these enhanced measures to current and new business as of the notice's issue date, 25 January 2017.

Key obligations

• Prescribed businesses must exercise a greater degree of caution and apply enhanced client due diligence to all new and existing business relationships and transactions connected with countries named in the FATF Public Statement (DPRK and Iran).
• For DPRK and Iran specifically, prescribed businesses must take appropriate measures to ensure correspondent relationships are not used to bypass or evade counter-measures and risk mitigation practices.
• Prescribed businesses must consider the risk posed by jurisdictions on the FATF Improving Global AML/CFT Compliance list when undertaking or reviewing risk assessments of any business relationship or occasional transaction.
• Prescribed businesses must exercise greater caution and apply enhanced client due diligence for business connected with Haiti, Venezuela, and the named Central and West African countries of concern to the Commission.
• Prescribed businesses must be prepared to demonstrate the actions taken under this Instruction, as they will be reviewed during on-site inspections and by other means.

Applies to

prescribed businesses

Related documents

• Instruction Number 02/2017 for Prescribed Businesses repeals this document