Consultation on proposals regarding further enhancements to the AML/CFT Handbook No. 12 (2022-10)

Summary

This is a JFSC consultation paper (No. 12, October 2022) seeking industry feedback on proposed enhancements to the consolidated AML/CFT Handbook, which became effective on 31 May 2022. The proposals add new non-binding guidance notes and new binding Codes of Practice across multiple Handbook sections, intended to give clearer guidance and to better demonstrate Jersey's compliance with FATF Recommendations and Immediate Outcomes. No changes are yet final; this is a draft consultation, not a rule change.

• Who is affected: All supervised persons under the Handbook, plus applicants for financial services business who will need to comply with the Codes of Practice if authorised.
• Sections amended: Corporate Governance (Section 2), Identification measures (Sections 3 and 4), Ongoing monitoring (Section 6), Enhanced and simplified CDD (Section 7), Reporting of ML/TF activity (Section 8), Screening/awareness/training of employees (Section 9), Record keeping (Section 10), and DNFBP-specific sections for Estate Agents and High Value Dealers (14), Lawyers (15) and Accountants (16).
• Key new Codes of Practice proposed: A requirement to complete and return the JFSC's annual supervisory risk data questionnaire; new requirements to understand the purpose and intended nature of a business relationship/transaction and the nature and scope of a customer's business activities; and amendments to reporting, training and record-keeping Codes.
• Process: The JFSC will consider written responses (directly or coordinated via Jersey Finance Limited), publish feedback and finalised Handbook changes, and hold a drop-in clinic for industry queries.

The JFSC intends to consolidate this work with its parallel consultation on AML/CFT scope exemptions into one master Handbook, which it currently anticipates taking effect in July 2023, though this is stated only as an intention rather than a confirmed date.

Key obligations

• Interested parties wishing to comment must submit written responses to the JFSC (or via Jersey Finance Limited) by the stated deadline.
• Businesses wishing to attend the drop-in clarification session must book a 15-minute slot by contacting the JFSC's named policy adviser.

Applies to

supervised persons, applicants to carry on financial services business, estate agents and high value dealers, lawyers, accountants

Deadlines

• 13 January 2023: Deadline for submitting written comments on the consultation paper to the JFSC or to Jersey Finance Limited.
• 15 November 2022: First drop-in clarification session at the Santander Work Café for industry to discuss the proposed changes (15-minute appointment slots, bookable by phone).
• January 2023: JFSC intends to publish its feedback to this consultation paper and finalised Handbook changes.
• July 2023: JFSC's current intention for all changes to the Handbook (from this consultation and the related AML/CFT scope exemptions consultation) to become effective in a consolidated master version.