Instruction (Number 01/2020) for Specified Businesses (2020-03-06)

Summary

This was an Instruction issued by the Guernsey Financial Services Commission under Section 49AA(6) of the Criminal Justice (Proceeds of Crime) (Bailiwick of Guernsey) Law, 1999, directing specified businesses on how to treat business connected with jurisdictions identified by the FATF as high risk or under increased monitoring, plus jurisdictions of specific concern to the Commission. It replaced the prior Instruction (Number 03/2019) and has itself since been repealed and superseded by a later instruction.

• High risk jurisdictions (FATF call for action list): For countries on the FATF 'black list' (at issue: DPRK and Iran), specified businesses must exercise a greater degree of caution, apply enhanced customer due diligence, and give special attention to existing and new business relationships or transactions where the customer or beneficial owner has a relevant connection to these countries.
• Jurisdictions under increased monitoring (FATF grey list): For countries on the FATF 'grey list' (including, at issue, Albania, The Bahamas, Barbados, Botswana, Cambodia, Ghana, Iceland, Jamaica, Mauritius and others), specified businesses must factor the jurisdiction's risk into their risk assessment of any business relationship or occasional transaction, though enhanced due diligence is not mandated for this list.
• Jurisdictions of concern to the Commission: For Venezuela (due to concerns over fraudulent identity documents and drug trafficking) and a listed group of Central and West African countries (Cape Verde Islands, Guinea Bissau, Nigeria, Cote d'Ivoire, Liberia, Senegal, Ghana, Mauritania, Sierra Leone, Guinea, Morocco), specified businesses must exercise greater caution and apply enhanced customer due diligence, with special attention to relevant business relationships and transactions.
• Supervisory review: The Commission states it will review the actions taken by each specified business under all three parts of the Instruction during on-site inspections and by other means.

Because this Instruction has been repealed, it no longer reflects the current list of high-risk and monitored jurisdictions or the Commission's current areas of concern; readers should consult the current instruction in force for up-to-date jurisdictional guidance.

Key obligations

• Specified businesses must exercise a greater degree of caution and apply enhanced customer due diligence for business connected with countries on the FATF high-risk (call for action) list.
• Specified businesses must give special attention to existing and new business relationships and transactions where the customer or beneficial owner has a relevant connection to a high-risk jurisdiction.
• Specified businesses must factor the risk posed by jurisdictions on the FATF increased monitoring (grey) list into their risk assessment of business relationships and occasional transactions.
• Specified businesses must exercise greater caution and apply enhanced customer due diligence for business connected with Venezuela and the listed Central and West African countries identified as of concern to the Commission.

Applies to

specified businesses