Guidance note: making a referral to the police and/or the Attorney General (2024-04-16)

Summary

This guidance note explains when the JFSC will refer possible criminal offences it discovers while carrying out its statutory functions to the police and/or the Attorney General. It clarifies that a referral is a separate step from prosecution, which remains solely a decision for the Attorney General, and that referrals are made case by case rather than automatically whenever an offence is identified.

• Seriousness factors: A referral is more likely where the conduct threatens clients or potential clients, damages the Island's reputation, or casts doubt on the integrity, competence or financial standing of the person involved.
• Conduct-based factors: Deliberate or premeditated conduct, or knowingly/recklessly providing false or misleading information to the JFSC, increases the likelihood of referral.
• Cooperation and history: Failure or refusal to cooperate with the JFSC, or a history of past contraventions or poor regulatory compliance, will be taken into account.
• Alternative to referral: The JFSC may instead use its own regulatory powers or sanctions, or oversee a remediation programme, particularly for negligent (non-deliberate) breaches such as under the Money Laundering (Jersey) Order 2008.
• Scope limitation: The guidance does not affect the Attorney General's independent role to investigate, prosecute, or pursue confiscation/forfeiture, nor the powers and duties of the police to investigate offences.

The note serves as a warning that regulated entities and their staff face real risk of criminal referral if they fail to take adequate steps to comply with applicable laws, subordinate legislation, Codes of Practice, the Money Laundering Order, and the AML/CFT/CPF Handbook.

Key obligations

• Regulated entities and their employees must take adequate steps to ensure ongoing compliance with applicable regulatory laws, subordinate legislation, Codes of Practice, the Money Laundering (Jersey) Order, and the AML/CFT/CPF Handbook, to avoid the risk of being referred to the police and/or the Attorney General for potential criminal offences.

Applies to

regulated entities, employees of regulated entities