Countering proliferation of weapons of mass destruction and its financing (Guidance on countering the financing of proliferation of weapons of mass destruction)

Summary

This is JFSC guidance, issued jointly with the Minister for External Relations and Financial Services, explaining how Jersey industry should counter the financing of proliferation of weapons of mass destruction (PF). It is not a standalone legal instrument but is intended to be read alongside existing sanctions law (the Sanctions and Asset-Freezing (Jersey) Law 2019 and related Order) and the Proceeds of Crime (Jersey) Law 1999, and should be used together with JFSC's separate sanctions guidance.

The guidance explains what Proliferation and PF are, the stages and typologies of PF activity, and Jersey's existing international and domestic legal obligations to implement UN Security Council Resolutions and FATF standards on countering proliferation financing (CPF). It then sets out a risk-based approach to identifying and mitigating PF risk.

• Legal framework: Reiterates that Relevant Financial Institutions and Supervised Persons must comply with targeted financial sanctions relating to proliferation (TFS-PF) under the Sanctions and Asset-Freezing (Jersey) Law 2019 and the Sanctions and Asset-Freezing (Implementation of External Sanctions) (Jersey) Order 2021, including freezing designated persons' assets without delay.
• Risk assessment: Describes how firms should assess and mitigate PF risk using both a rules-based (sanctions screening) and a risk-based approach, covering country/geographic, customer, and product/service risk categories.
• Risk indicators: Sets out detailed red-flag indicators for potential breach, non-implementation or evasion of TFS-PF, covering customer profiles, account and transaction activity, trade finance, and the maritime sector.
• Sensitive goods and case studies: Provides annexes listing PF-sensitive and export-controlled goods, an example DPRK trade-based evasion scheme, and sources for PF case studies to support ongoing due diligence.

As guidance, the document does not itself create new statutory deadlines or filing requirements; it directs firms to apply existing sanctions compliance reporting obligations and processes already established under Jersey's sanctions framework.

Key obligations

• Relevant financial institutions and Supervised Persons must comply with targeted financial sanctions on proliferation (TFS-PF), including freezing without delay the funds or assets of designated persons or entities.
• Firms must not make funds or assets available, directly or indirectly, to or for the benefit of persons or entities designated under UNSC Chapter VII resolutions relating to proliferation.
• Firms should conduct and document a PF risk assessment covering country, customer, and product/service risk, and apply both rules-based sanctions screening and a risk-based approach to mitigation.
• Firms should follow Jersey's sanctions compliance reporting obligations and process when identifying potential breaches, non-implementation or evasion of TFS-PF.
• Firms should incorporate the guidance's PF risk indicators (customer, transaction, trade finance and maritime sector indicators) into ongoing due diligence and transaction monitoring.

Applies to

Supervised Persons, Relevant financial institutions, financial services businesses, Jersey legal entities and arrangements (companies, partnerships, foundations)