Instruction Number 02/2017 for Prescribed Businesses

Summary

This is a GFSC instruction issued under section 49A(7) of the Criminal Justice (Proceeds of Crime) (Bailiwick of Guernsey) Law, 1999, directing prescribed businesses on how to treat business connected to jurisdictions identified by FATF as high-risk or of concern to the Commission. It replaces and repeals the prior Instruction (Number 01/2017) for Prescribed Businesses.

• FATF Public Statement jurisdictions (DPRK, Iran): Prescribed businesses must exercise a greater degree of caution, apply enhanced client due diligence, and give special attention to all existing and new business relationships and transactions connected with these countries; for DPRK and Iran specifically, businesses must also take appropriate measures to ensure correspondent relationships are not used to bypass counter-measures.
• Improving Global AML/CFT Compliance jurisdictions: Prescribed businesses must consider the risk posed by the listed jurisdictions (including Afghanistan, Bosnia and Herzegovina, Ethiopia, Iraq, Lao PDR, Syria, Uganda, Vanuatu and Yemen) when undertaking or reviewing risk assessments of any business relationship or occasional transaction.
• GFSC jurisdictions of concern: 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), prescribed businesses must exercise greater caution, apply enhanced due diligence, and give special attention to related business relationships and transactions.
• Supervisory review: The Commission states that action taken by each prescribed business under each part of the Instruction will be reviewed during on-site inspections and by other means as necessary.

The instruction is informational and risk-based guidance tied to the current FATF lists and GFSC concerns at the time of issue; it does not itself set a compliance filing deadline but imposes ongoing due diligence and risk-assessment obligations on prescribed businesses.

Key obligations

• Exercise a greater degree of caution and apply enhanced client due diligence for business connected with jurisdictions named in the FATF Public Statement (DPRK, Iran)
• For DPRK and Iran, take appropriate measures to ensure correspondent relationships are not used to bypass or evade counter-measures and risk mitigation practices
• Consider the risk posed by jurisdictions listed in the FATF '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 client due diligence for business connected with Haiti, Venezuela, and specified Central and West African countries identified as of concern to the GFSC
• Be prepared for the Commission to review the actions taken under this Instruction during on-site inspections or other means

Applies to

prescribed businesses

Related documents

• This document repeals Instruction (Number 01/2017) for Prescribed Businesses - Business from Sensitive Sources