Money Service Business Code of Practice

Summary

This is the Jersey Financial Services Commission's Code of Practice for Money Service Business, issued under Article 19 of the Financial Services (Jersey) Law 1998. It applies to all persons registered under Article 9 of that Law to carry on money service business, and sets out five high-level principles supported by detailed conduct-of-business and governance rules that registered persons must meet on an ongoing basis as part of the JFSC's fit and proper assessment.

• Integrity: Registered persons must conduct money service business with integrity and must not act, or enter arrangements, so as to avoid their regulatory responsibilities under the Code.
• Client interests: Registered persons must have due regard for clients' interests, execute lawful instructions promptly and accurately, protect confidentiality, and manage conflicts of interest.
• Organisation and control: Registered persons must maintain effective corporate governance (span of control, clear apportionment of responsibilities, board oversight), documented policies and procedures, compliance with the JFSC's outsourcing policy, adequate internal controls, a Compliance Officer and Money Laundering Reporting Officer, record keeping, and a complaints process.
• Transparency: Registered persons must be transparent in their money service business arrangements.
• Cooperation with JFSC: Registered persons must deal with the JFSC openly and cooperatively, including timely notification of material matters and provision of information, notification of agent detail changes, and notification within one business day if a systems failure prevents use of the online portal.

Breach of the Code does not itself create civil liability but is grounds for JFSC regulatory action, including public statements, written directions, financial penalties, or revocation of registration, and the Code is admissible as evidence in legal proceedings. The current version has been effective since 1 June 2019 and was last revised 1 January 2021.

Key obligations

• Operate an effective corporate governance system with an adequate span of control, clear apportionment of responsibilities and senior management/board oversight, reviewed periodically.
• Discuss and agree span of control arrangements with the JFSC in advance if the registered person is not Jersey incorporated.
• Maintain and adequately document policies and procedures covering the operations of the business.
• Comply with the JFSC's policy on outsourcing, including its notification requirements, as updated from time to time.
• Maintain internal systems and controls providing reasonable assurance over business conduct, transactions, record accuracy, capital adequacy monitoring, and guarding against financial crime and AML non-compliance.
• Appoint and maintain a Compliance Officer and Money Laundering Reporting Officer.
• Maintain adequate records and operate a complaints handling process.
• Notify the JFSC in writing of changes to the name and address of any agents appointed to carry on money service business (per 3.4.7).
• Notify the JFSC where the Channel Islands Financial Ombudsman directs payment of compensation or other steps regarding a complainant (per 3.5.3).
• Notify the JFSC as soon as the registered person becomes aware of any matter material to JFSC supervision, compliance with the Law, registration conditions, directions, the Code, or the fitness and propriety of principal or key persons.
• If unable to access the JFSC's online portal due to a systems failure, notify the JFSC in writing within one business day of identifying the failure.
• Comply with all relevant anti-money laundering legislation and the relevant AML/CFT/CPF Handbook.

Applies to

registered persons (money service business), money service businesses registered under Article 9 of the Financial Services (Jersey) Law 1998, principal persons, key persons

Deadlines

• one business day: A registered person unable to access the JFSC's online portal due to a systems failure must notify the JFSC in writing within one business day of the failure being identified.
• as soon as it becomes aware: A registered person must notify the JFSC of material matters (e.g. affecting compliance, fitness and propriety) as soon as it becomes aware, or has reasonable grounds to believe, that such matters have occurred or may be about to occur.
• 1 June 2019: Effective date of the current revised version of the Code for all registered persons.

Related documents

• This document is made under Financial Services (Jersey) Law 1998