Instruction Number 02/2017 for Financial Services Businesses

Summary

This Instruction, issued under section 49(7) of the Criminal Justice (Proceeds of Crime) (Bailiwick of Guernsey) Law, 1999, requires financial services businesses to apply enhanced AML/CFT counter-measures and due diligence to business connected with certain higher-risk jurisdictions identified by the FATF and by the Commission itself. It repeals and replaces the earlier Instruction Number 01/2017.

• FATF Public Statement countries (DPRK, Iran): Firms must exercise greater caution, apply enhanced client due diligence and give special attention to all existing and new business relationships and transactions connected with these jurisdictions; for Iran and DPRK specifically, firms must also take measures to ensure correspondent relationships are not used to bypass counter-measures.
• FATF on-going process countries: For jurisdictions listed under Improving Global AML/CFT Compliance: On-going Process (currently including Afghanistan, Bosnia and Herzegovina, Ethiopia, Iraq, Lao PDR, Syria, Uganda, Vanuatu and Yemen), firms must factor the jurisdiction's risk into their business relationship or occasional transaction risk assessments.
• GFSC-identified concerns (Haiti, Venezuela, Central and West Africa): Firms must exercise greater caution and apply enhanced customer due diligence and special attention to 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).
• Supervisory review: The Commission will review the actions taken by each financial services business under all three parts of the Instruction during on-site inspections and by other means.

The Instruction does not set a fixed compliance date beyond its issuance on 10 April 2017 and applies on an ongoing basis until amended or repealed.

Key obligations

• Exercise a greater degree of caution when taking on business from countries or territories named in the FATF Public Statement (currently DPRK and Iran).
• Apply enhanced client due diligence and give special attention to all existing and new business relationships and transactions connected with FATF Public Statement jurisdictions.
• For correspondent relationships connected with Iran and DPRK, take appropriate measures to ensure they are not being used to bypass or evade counter-measures and risk mitigation practices.
• Consider the risk posed by jurisdictions listed in the FATF's Improving Global AML/CFT Compliance: On-going Process document when undertaking or reviewing risk assessments of business relationships or occasional transactions.
• Exercise greater caution and apply enhanced customer due diligence and special attention to business connected with Haiti, Venezuela, and the named Central and West African countries of concern to the Commission.
• Be prepared for the Commission to review the actions taken under this Instruction during on-site inspections or by other means.

Applies to

financial services businesses

Related documents

• This document repeals Instruction (Number 01/2017) for Financial Services Businesses