Guidance on interpretation of 'in or from within Jersey' for the purposes of Proceeds of Crime (Supervisory Bodies) (Jersey) Law 2008

Summary

This guidance from the JFSC clarifies when a business is considered to be carrying on a Schedule 2 financial services activity 'in or from within Jersey' for the purposes of the Proceeds of Crime (Supervisory Bodies) (Jersey) Law 2008, which triggers a requirement to register with the JFSC. It sets out factual indicators and exclusions to help businesses and individuals determine whether their activities fall within scope.

• Non Jersey entity in scope if: it is managed and controlled from Jersey, has a physical presence (e.g. office space) in Jersey, or has employees or agents operating in Jersey with a degree of permanence undertaking Schedule 2 activities from within Jersey.
• Non Jersey individual in scope if: they have some degree of permanence in Jersey, meaning a fixed or serviced office taken in their own name for their business activities.
• Not in scope: Schedule 2 activity provided solely from outside Jersey as a result of marketing, soliciting, or targeting Jersey clients.
• Advice exclusion: Provision of advice is not treated as carried on in or from within Jersey solely because the advice is received in Jersey.
• Overseas person exclusion: An overseas person dealing with, acting as agent for, or carrying out discretionary management for a person in Jersey is not treated as carrying on business in or from within Jersey solely because that person is in Jersey.
• Contract exclusion: Provision of a Schedule 2 activity is not treated as carried on in or from within Jersey solely because a customer gives effect to a contract from within Jersey.

The guidance directs readers to separate guidelines under Article 36 of the Proceeds of Crime (Jersey) Law 1999 for determining whether an activity or operation amounts to a business in the first place.

Key obligations

• A business carrying out a Schedule 2 activity or operation in or from within Jersey (as determined by the indicators in this guidance) is required to register with the JFSC.

Applies to

Non Jersey entities conducting Schedule 2 financial services business activities, Non Jersey individuals conducting Schedule 2 financial services business activities, DNFBPs