Feedback on enhancements to criminal background checks (2025-11)

Summary

This is the JFSC's feedback paper following Consultation Paper No 1 2025 on enhancing criminal background checks (CRCs) for Principal Persons (PPs) and Key Persons (KPs) of Supervised Persons. It confirms the JFSC's final policy position, summarises industry feedback, and sets out new Codes of Practice that will be added to the AML/CFT/CPF Handbook, effective 31 May 2026.

• Scope narrowed: The CRC regime applies only to PPs and KPs as defined under the Proceeds of Crime (Supervisory Bodies) (Jersey) Law 2008 (SBJL); general insurance mediation business (GIMB) is excluded.
• Three year refresh dropped: The originally proposed three year rolling refresh requirement has been removed in response to industry feedback.
• Responsibility placed on industry: Supervised Persons (not the JFSC) are responsible for collecting, reviewing and managing CRC/DBS checks on their PPs and KPs.
• When checks are required: CRCs must be obtained for new or additional PP/KP appointments, whenever there is a change of control at existing licensees, and on an ongoing risk based basis to confirm continued fitness and propriety.
• Timing of check: The DBS check (or foreign equivalent) must be dated within six months of the date of the application or notified change.
• Retention simplified: The proposed five year record retention period has been dropped; Supervised Persons must instead manage personal data in line with general data protection and GDPR obligations.
• New Handbook Codes: New Codes are added to Sections 10, 11 and 15 (Sections 9, 10 and 18 of the current Handbook), covering fitness and propriety assessment, evidence retention, notification of material changes, and specific AMLSP obligations for AMLSP-appointed key persons, MLCOs and MLROs.

The enhanced Handbook and Codes of Practice take effect on 31 May 2026, preceded by a transitional period from 27 November 2025 to allow firms to update policies, systems and controls and obtain necessary checks. The changes are not retrospective, and the JFSC intends to review industry compliance with the new Codes towards the end of 2026 as part of Jersey's MONEYVAL Priority Action follow up.

Key obligations

• Supervised persons must take reasonable steps to ensure persons holding key person and principal person roles are at all times fit and proper.
• Supervised persons must obtain a basic DBS check (or foreign equivalent) for key persons and principal persons for new or additional roles, whenever there is a change of control, and on an ongoing risk based basis.
• The criminal record certificate relied upon must be dated within six months of the date the application or change notification is submitted.
• For individuals not previously authorised by the JFSC as a PP or KP before 31 May 2026, the supervised person must obtain a criminal record certificate for the individual's current jurisdiction of residence and each jurisdiction where they lived or worked for six months or more within the prior 10 years.
• Supervised persons must be able to provide the JFSC, on request, with documents supporting their fitness and propriety assessment, including criminal record certificates, a summary of checks conducted, and any relevant findings.
• A supervised person must notify the JFSC of any material change relating to a principal person or key person that may impact their fitness and propriety.
• Supervised persons must retain documents, data and information used to assess fitness and propriety for a period aligned with their data protection law obligations.
• An AMLSP must conduct ongoing fitness and propriety checks, including criminal records checks, on its appointed key persons, and on the AMLSP Direct Customer's MLCO and MLRO.
• Where an AMLSP is contracted only to obtain criminal record certificates (not to provide key person roles), the registered person remains responsible for meeting the underlying statutory obligations.

Applies to

Supervised Persons under the Proceeds of Crime (Supervisory Bodies) (Jersey) Law 2008, Principal Persons (directors, beneficial owners, controllers), Key Persons (including MLRO, MLCO, compliance officer), Anti-money laundering service providers (AMLSPs), Banking businesses, Trust company businesses, Fund services businesses, Investment businesses, Insurance businesses, Money services businesses

Deadlines

• 27 November 2025 to 31 May 2026: Transitional period for industry to update policies, procedures and obtain any necessary CRC checks before the enhanced Handbook Codes take effect.
• 31 May 2026: Enhanced AML/CFT/CPF Handbook and new Codes of Practice on criminal background checks become effective; CRC regime commences for existing Supervised Persons, PPs and KPs.
• within six months of application or change: A DBS check (or foreign equivalent) relied upon must be dated within six months of the date the application or subsequent change is submitted.
• towards the end of 2026: JFSC will evaluate how supervised businesses are complying with the new Codes of Practice.