Instruction (Number 3) for Financial Services Businesses (2009-11-11)

Summary

This Instruction, issued by the Guernsey Financial Services Commission under the Proceeds of Crime Law and the Transfer of Funds Ordinances for Guernsey, Alderney and Sark, requires financial services businesses that act as recipients of wire transfers to strengthen their handling of transfers that lack full originator (payer) information. It follows international AML/CFT assessments criticising banks in nearby jurisdictions for weak, spot-check-only procedures for identifying and handling incomplete wire transfers.

• Policy review: The Board of each financial services business acting as a wire transfer recipient must review its policies, procedures and controls for detecting missing payer information and for acting on it, to ensure they meet the Transfer of Funds (Guernsey) Ordinance 2007 sections 5 to 7 and the relevant Handbook rules.
• Evidence retention: Where payer information is missing or incomplete, documented evidence of the action taken must be retained.
• Remediation deadline: Any deficiencies identified must be remedied by close of business on 29 January 2010.
• Supervisory follow up: The Commission will review compliance with this Instruction during on-site inspections and by other means.

Key obligations

• The Board of each financial services business acting as a recipient of wire transfers must review its policies, procedures and controls on detection of missing or incomplete payer information to ensure compliance with sections 5, 6 and 7 of the Transfer of Funds (Guernsey) Ordinance 2007 and the Handbook for Financial Services Businesses on Countering Financial Crime and Terrorist Financing
• Financial services businesses must retain documented evidence of the action taken where payer information is missing or incomplete
• Financial services businesses must have taken any necessary action to remedy identified deficiencies by close of business on 29 January 2010

Applies to

financial services businesses acting as recipients of wire transfers, banks

Deadlines

• 29 January 2010 (close of business): Deadline for financial services businesses to have taken any necessary action to remedy deficiencies in their handling of wire transfers lacking full originator information