Instruction (Number 5) for Financial Services Businesses - Screening of Employees (2009-11-11)

Summary

This Instruction, issued by the GFSC under the Criminal Justice (Proceeds of Crime) (Bailiwick of Guernsey) Law, 1999, directs financial services businesses to strengthen screening of employees and prospective employees, particularly around verifying claimed qualifications and professional memberships. It followed comments from law enforcement and a Royal Court request highlighting weaknesses exposed during a criminal trial.

• Review compliance: The Board of each financial services business must review compliance with regulation 13 of the Criminal Justice (Proceeds of Crime) (Financial Services Businesses) (Bailiwick of Guernsey) Regulations, 2007 and the relevant rules in chapter 11 of the Handbook for Financial Services Businesses on Countering Financial Crime and Terrorist Financing.
• Enhanced checks: Special attention and checks must be undertaken on claimed qualifications and professional memberships of potential employees.
• Remediation deadline: Any identified deficiencies must be remedied by close of business on 29 January 2010.
• Ongoing oversight: The Commission will review action taken under this Instruction during on-site inspections and by other means.

The Instruction remains in force and applies to the Boards of financial services businesses within scope of the underlying anti-money laundering regulations and Handbook.

Key obligations

• The Board of each financial services business must review compliance with regulation 13 of the 2007 Regulations and chapter 11 of the Handbook on Countering Financial Crime and Terrorist Financing.
• Special attention and verification checks must be undertaken on qualifications and professional memberships claimed by potential employees.
• Any deficiencies identified must be remedied by close of business on 29 January 2010.

Applies to

financial services businesses

Deadlines

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