Consultation Paper No. 3 2020 - Revisions to the AML/CFT Handbooks

Summary

This is a JFSC consultation paper proposing amendments to Jersey's AML/CFT Handbooks to bring them into line with the 2012 FATF Recommendations. It does not itself change any binding requirement; it invites industry feedback on proposed changes before they are finalised.

• Business risk assessments: Proposes a new Code of Practice requiring a relevant person to maintain policies and procedures enabling it to provide its business risk assessment to the JFSC on request.
• Customer due diligence: Proposes multiple guidance amendments on identifying and verifying legal persons and arrangements (trusts, limited partnerships, companies, foundations, partnerships), including obtaining constitutional documents and identifying persons with senior management positions.
• Reliance on third parties: Proposes shortening the timeframe for a third party to provide CDD evidence without delay from five working days to two working days, and adding country risk factors to the guidance on assessing third parties' jurisdictions.
• Equivalent countries and territories: Discusses Appendix B's list of countries considered to have AML/CFT measures broadly consistent with FATF standards (text elided in this extract).
• Merging the Handbooks: Proposes, as a longer term measure, merging the four sector Handbooks (Main, Accountancy, Legal, Estate Agents/High Value Dealers) into a single Handbook (Stage 1), with a later, separately consulted Stage 2 to extend Codes of Practice to all relevant persons.

The paper poses six specific consultation questions on the effectiveness and proportionality of these proposals and on the merger proposal, and invites written responses by 31 July 2020, either directly to the JFSC or via Jersey Finance Limited for an industry response.

Applies to

relevant persons (financial services businesses under Schedule 2 of the Proceeds of Crime Law), DNFBPs (accountancy sector, legal sector, estate agents and high value dealers)

Deadlines

• 31 July 2020: Deadline for interested parties to submit written comments on the consultation paper to the JFSC
• 31 July 2020: Deadline for comments to be submitted to Jersey Finance Limited for inclusion in its coordinated industry response