Instruction (Number 6) for Financial Services Businesses - Existing Customers (2009-11-11)

Summary

This is a 2009 Instruction issued by the Guernsey Financial Services Commission under the Criminal Justice (Proceeds of Crime) (Bailiwick of Guernsey) Law, 1999, directing financial services businesses to remediate customer due diligence (CDD) gaps for existing customers. It follows international AML/CFT assessment findings (including IMF comments on Jersey) that highlighted weak implementation of CDD timing requirements for pre-existing business relationships.

• Policy review: The Board of each financial services business must, as a matter of urgency, review its policies, procedures and controls for existing customers to ensure they meet regulations 4 and 8 of the Criminal Justice (Proceeds of Crime) (Financial Services Business) Regulations 2007 and the chapter 8 rules of the Handbook on Countering Financial Crime and Terrorist Financing.
• Remediation deadline: By close of business on 31 March 2010, the Board must have taken any necessary action to fix identified deficiencies and satisfy itself that CDD information appropriate to the assessed risk is held for each business relationship.
• Supervisory follow up: The Commission will review the action taken under this Instruction through on-site inspections and other supervisory means.

The Instruction applies to financial services businesses that had not fully completed a retrospective know your customer programme under the Commission's 2004 Statement on Anti-Money Laundering Standards for Existing Customers.

Key obligations

• The Board of each financial services business must review its policies, procedures and controls for existing customers to ensure compliance with regulations 4 and 8 and chapter 8 of the Handbook.
• By close of business on 31 March 2010, each financial services business must have remedied any identified CDD deficiencies and satisfied itself that appropriate CDD information is held for each business relationship.

Applies to

financial services businesses

Deadlines

• 31 March 2010 (close of business): Deadline for financial services businesses to remedy identified CDD deficiencies and confirm appropriate CDD information is held for each existing business relationship.