Consultation Paper No.7 2021: Consolidation of the AML/CFT Handbooks and other amendments

Summary

This is a JFSC consultation paper proposing to merge the four current AML/CFT Handbooks (Main Handbook, Accountancy Sector, Legal Sector, and Estate Agents and High Value Dealers) into a single Consolidated Handbook, extend the mandatory AML/CFT Codes and guidance notes to cover all supervised persons, and add new AML/CFT Codes on electronic identification (E-ID), electronic statements/utility bills, and certification of documents. It is a draft consultation, not a final rule, and industry feedback is being sought before the JFSC finalises and issues the amended Consolidated Handbook.

• Consolidation: Merges the four sector Handbooks into one Consolidated Handbook with common sections applicable across sectors and sector specific sections, using colour coding to distinguish mandatory Codes from guidance.
• Extension of scope: Extends mandatory AML/CFT Codes and guidance notes to all supervised persons, including relevant persons not previously subject to any Codes (who were previously only expected to treat the Main Handbook as guidance).
• New Codes: Introduces four new AML/CFT Codes covering E-ID, electronic statements/utility bills, and certification of documents, responding to industry feedback on remote onboarding technologies.
• Rationale: Intended to help Jersey demonstrate fuller technical compliance with the 2012 FATF Recommendations, since AML/CFT Codes currently have no mandatory effect for a range of sectors.
• E-ID restrictions flagged: Draft guidance indicates certain identification methods (e.g. video calls without biometric matching, scanned copies alone, unmatched selfies) would not be permitted as sufficient evidence of identity.

The JFSC plans to publish feedback and issue the amended Consolidated Handbook around 31 January 2022, followed by a two month transition period for supervised persons to come into compliance with the new or extended requirements.

Key obligations

• Interested parties wishing to comment must submit written responses to the JFSC (or via Jersey Finance Limited for a collated industry response) by 7 January 2022.
• Once the Consolidated Handbook is issued, supervised persons already subject to AML/CFT Codes will need to comply with four additional Codes on E-ID, electronic statements/utility bills and certification of documents.
• Once the Consolidated Handbook is issued, supervised persons not currently subject to any AML/CFT Codes will need to comply with the full body of Codes in the Consolidated Handbook, within the two month transition period following issuance.

Applies to

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

Deadlines

• 7 January 2022: Deadline for submitting written comments on the consultation to the JFSC or to Jersey Finance Limited for the collated industry response.
• 31 January 2022: Anticipated date the JFSC will publish feedback and issue the amended Consolidated Handbook.
• two month transition period commencing on the date the amended Consolidated Handbook is issued: Transition period for supervised persons to come into compliance with the new/extended AML/CFT Codes.