Prescribed Businesses Instruction (Number 03)

Summary

This Instruction, issued by the Guernsey Financial Services Commission under section 49A(7) of the Criminal Justice (Proceeds of Crime) (Bailiwick of Guernsey) Law, addresses the risk that introducers based in jurisdictions with secrecy provisions may be unable to promptly supply customer due diligence (CDD) evidence. It follows concerns raised in an IMF assessment and sets out requirements for prescribed businesses that rely on introducer relationships.

• Review compliance: The Board of each prescribed business must review compliance with Regulation 10 of the 2008 Regulations and each of the rules in section 4.8 of the Handbook for Legal Professionals, Accountants and Estate Agents.
• Review testing programme: The Board must review its testing programme under rule 148 of the Handbook to ensure risks from introducers in secrecy or secrecy-perceived jurisdictions are identified and mitigated, including by obtaining sample copies of identification data held by those introducers.
• Remedy or discontinue: By close of business on 26 February 2010, any identified deficiencies must be remedied, or the introducer relationship discontinued if they cannot be remedied.

The Commission states it will review the actions taken by prescribed businesses under this Instruction during on-site inspections and by other means.

Key obligations

• The Board of each prescribed business must review its compliance with Regulation 10 of the Criminal Justice (Proceeds of Crime) (Legal Professionals, Accountants and Estate Agents) (Bailiwick of Guernsey) Regulations 2008 and each rule in section 4.8 of the Handbook.
• The Board must review its testing programme under rule 148 of the Handbook to ensure risks from introducers in secrecy or secrecy-perceived jurisdictions are identified, managed and mitigated, including obtaining sample copies of identification data from introducers.
• By close of business on 26 February 2010, prescribed businesses must have taken necessary action to remedy any identified deficiencies or, if deficiencies cannot be remedied, discontinue the introducer relationship.

Applies to

prescribed businesses, legal professionals, accountants, estate agents

Deadlines

• 26 February 2010: Deadline by close of business for prescribed businesses to remedy identified deficiencies in introducer relationships or discontinue the relationship if deficiencies cannot be remedied.