Instruction (Number 03/2017) for Prescribed Businesses

Summary

This Instruction, issued by the GFSC under section 49A(7) of the Criminal Justice (Proceeds of Crime) (Bailiwick of Guernsey) Law, 1999, directs prescribed businesses on how to treat business connected with higher-risk jurisdictions identified by the FATF and by the Commission itself. It replaces the previous Instruction (Number 02/2017) and reflects the FATF's most recent Public Statement and 'Improving Global AML/CFT Compliance: On-going Process' lists, plus Commission-specific concerns.

• FATF Public Statement jurisdictions (DPRK, Iran): Prescribed businesses 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 countries. For Iran and DPRK specifically, businesses must also take measures to ensure correspondent relationships are not used to bypass counter-measures.
• FATF on-going compliance process jurisdictions: For countries listed as having strategic AML/CFT deficiencies with an agreed action plan (currently Bosnia and Herzegovina, Ethiopia, Iraq, Syria, Uganda, Vanuatu, Yemen), prescribed businesses must factor the jurisdiction's risk into their risk assessment of any business relationship or occasional transaction.
• Commission-specific concerns: Prescribed businesses must apply the same greater caution and enhanced due diligence requirements as for the FATF Public Statement countries to business connected with 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) due to terrorism financing, corruption, and trafficking concerns.
• Supervisory review: The Commission states that the actions taken by each prescribed business under this Instruction will be reviewed during on-site inspections and by other means.

The Instruction does not set a fixed compliance deadline beyond its issue date; it operates as a standing risk-based due diligence requirement that will be updated as FATF and Commission lists change.

Key obligations

• Exercise a greater degree of caution and apply enhanced client due diligence to business connected with countries named in the FATF Public Statement (currently DPRK and Iran)
• For Iran and DPRK, take appropriate measures to ensure correspondent relationships are not used to bypass or evade counter-measures and risk mitigation practices
• Factor the risk posed by jurisdictions listed in the FATF's 'Improving Global AML/CFT Compliance: On-going Process' document into risk assessments of business relationships or occasional transactions
• Exercise greater caution and apply enhanced client due diligence to business connected with Haiti, Venezuela, and the listed Central and West African countries of Commission concern
• Be prepared to have actions taken under this Instruction reviewed during on-site inspections or by other supervisory means

Applies to

prescribed businesses

Related documents

• Instruction (Number 04/2017) for Prescribed Businesses repeals this document