Instruction (Number 4) for Prescribed Businesses (2009-11-11)

Summary

This is Instruction (Number 4) issued by the Guernsey Financial Services Commission under section 49A(7) of the Criminal Justice (Proceeds of Crime) (Bailiwick of Guernsey) Law, 1999. It requires prescribed businesses (legal professionals, accountants and estate agents subject to the relevant regulations) to strengthen employee screening practices, particularly around verifying claimed qualifications and professional memberships, following concerns raised by law enforcement and the Royal Court.

• Review compliance: The Board of each prescribed business must review compliance with regulation 13 of the Criminal Justice (Proceeds of Crime) (Legal Professionals, Accountants and Estate Agents) (Bailiwick of Guernsey) Regulations, 2008, and chapter 9 of the Handbook for Legal Professionals, Accountants and Estate Agents on Countering Financial Crime and Terrorist Financing.
• Screening checks: Ensure special attention is paid to, and checks undertaken on, qualifications and professional memberships claimed by potential employees.
• Remedial action: By close of business on 29 January 2010, remedy any deficiencies identified in the review.

The Commission will review the actions taken by prescribed businesses through on site inspections and other supervisory means.

Key obligations

• The Board of each prescribed business must review compliance with regulation 13 of the Criminal Justice (Proceeds of Crime) (Legal Professionals, Accountants and Estate Agents) (Bailiwick of Guernsey) Regulations, 2008, and chapter 9 of the AML/CFT Handbook.
• Prescribed businesses must ensure special attention is paid to and checks are undertaken on qualifications and professional memberships of potential employees.
• Prescribed businesses must, by close of business on 29 January 2010, have taken any necessary action to remedy identified deficiencies in employee screening.

Applies to

prescribed businesses, legal professionals, accountants, estate agents

Deadlines

• 29 January 2010: Deadline by close of business for prescribed businesses to have taken any necessary action to remedy deficiencies identified in employee screening compliance review.