Schedule 2 Supervisory Bodies Law Registration Form: guidance for individual sole trader Schedule 2 directors

Summary

This is JFSC guidance explaining how individual sole trader Schedule 2 directors should complete the Schedule 2 Supervisory Bodies Law (SBL) Registration Form, in light of temporary changes to the Money Laundering (Jersey) Order that disapply certain requirements to this group until 30 September 2024. It walks through specific form fields and indicates which questions can be answered 'No' or left inapplicable during this transitional period, and which underlying obligations still apply despite the disapplication.

• Form completion pointers: Guidance on entering addresses, legal form (Natural Person), position held (Director), supporting documentation (certified passport copy), and describing directorship activities, employees, revenue and projected income/customers.
• Temporarily disapplied questions: Until 30 September 2024, sole trader Schedule 2 directors may answer 'No' to questions on ML/TF/PF risk assessments, need not upload a business risk assessment, need not confirm written AML/CFT/CPF policies and procedures, and need not confirm AML/CFT/CPF training for employees (if none) or correspondent banking policies.
• Obligations that remain in force: Despite disapplication of the policies/procedures and MLRO appointment requirements, directors must still perform customer due diligence on companies they serve, monitor transactions for suspicious activity, file and keep records of suspicious activity/transaction reports, report and keep records of financial sanctions breaches, keep general records, and personally understand applicable AML/CFT/CPF obligations.
• High risk jurisdiction question: Directors must still answer whether the applicant is connected to a higher risk jurisdiction, assessed by reference to the companies they serve (their directors, beneficial owners, customers, assets or activities).
• VASP question: Sole trader directors not otherwise engaged in Virtual Asset Service Provider activity should answer 'No' to the VASP-related question.

The guidance is transitional in nature: the disapplied requirements are expected to become applicable again once the exemption period ends on 30 September 2024, at which point affected directors will need to comply with the full set of AML/CFT/CPF governance questions on the form.

Key obligations

• Sole trader Schedule 2 directors must still conduct customer due diligence on the companies for which they act as director.
• Sole trader Schedule 2 directors must still monitor transactions with customers for suspicious or unusual activity.
• Sole trader Schedule 2 directors must file suspicious activity/transaction reports where appropriate and keep records of the decision and correspondence with the FIU.
• Sole trader Schedule 2 directors must report financial sanctions breaches to the Minister for External Relations and Financial Services and keep related records.
• Sole trader Schedule 2 directors must keep records as required despite the disapplication of written policies and procedures requirements.
• Individuals providing director services must understand the AML/CFT/CPF obligations that continue to apply to them even without formal training or written policies.
• Applicants must answer the high risk jurisdiction question on the SBL Registration Form based on the risk profile of companies they serve.
• Applicants must provide a certified copy of their current passport as supporting documentation with the registration form.

Applies to

individual sole trader Schedule 2 directors, Schedule 2 businesses (DNFBPs)

Deadlines

• 30 September 2024: Certain Money Laundering (Jersey) Order requirements (risk assessments, business risk assessment upload, written AML/CFT/CPF policies and procedures, MLRO appointment, training requirement) are disapplied to sole trader Schedule 2 directors until this date.