Instruction (Number 04/2017) for Financial Services Businesses

Summary

This is Instruction (Number 04/2017), issued by the Guernsey Financial Services Commission under section 49(7) of the Criminal Justice (Proceeds of Crime) (Bailiwick of Guernsey) Law, 1999. It directs financial services businesses on the enhanced due diligence and counter-measures required when dealing with business connected to jurisdictions identified by the FATF as high-risk, or otherwise of concern to the Commission. It repeals and replaces the prior Instruction (Number 03/2017).

• FATF Public Statement jurisdictions: For countries named in the FATF Public Statement (DPRK and Iran), firms 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 to those countries; for DPRK and Iran specifically, firms must also take measures to ensure correspondent relationships are not used to bypass counter-measures.
• On-going AML/CFT compliance process jurisdictions: For jurisdictions listed under FATF's 'Improving Global AML/CFT Compliance: On-Going Process' document (including Bosnia and Herzegovina, Ethiopia, Iraq, Sri Lanka, Syria, Trinidad and Tobago, Tunisia, Vanuatu and Yemen at the time of issue), firms must factor the jurisdiction's risk into risk assessments of business relationships or occasional transactions.
• Commission-specific concerns: For Haiti, Venezuela, and a listed group of Central and West African countries (Cape Verde Islands, Cote d'Ivoire, Ghana, Guinea, Guinea Bissau, Liberia, Mauritania, Morocco, Nigeria, Senegal, Sierra Leone) of concern to the GFSC, firms must exercise greater caution, apply enhanced customer due diligence, and give special attention to related business relationships and transactions.
• Supervisory review: The Commission states it will review the actions taken by firms under each part of this Instruction during on-site inspections and by other means as necessary.

The Instruction does not set a fixed compliance deadline; the obligations apply on an ongoing basis from the issue date (5 December 2017) and will change as FATF updates its lists, historically prompting replacement instructions.

Key obligations

• Exercise a greater degree of caution and apply enhanced client due diligence for business connected to DPRK and Iran, and give special attention to all related existing and new business relationships and transactions
• 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 under 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, apply enhanced customer due diligence, and give special attention to business connected with Haiti, Venezuela, and the named Central and West African countries of concern to the Commission

Applies to

Financial services businesses