Jersey Post Limited (2024-11-08)

Summary

This is a JFSC public statement disclosing enforcement findings against Jersey Post Limited (JPL) relating to its money service business (MSB) activities during the period January 2019 to December 2022. It sets out serious governance and AML/CFT/CPF control failures identified through an on-site examination and an Independent Reporting Consultant's report, and confirms that although a Band 2A civil financial penalty was warranted, the JFSC exercised its discretion to impose a zero penalty given the potential impact on JPL and third parties.

• Board oversight failures: No formal Terms of Reference, infrequent Board meetings, brief minutes, and a 2021 Board effectiveness review that did not cover regulated activities as required by the MSB Code.
• Inadequate risk assessment: JPL's business risk assessment was outdated and failed to capture relevant ML/TF/PF risks, with no Board scrutiny of its content.
• Missing policies and procedures: No written policies/procedures demonstrating compliance with the FS(J)L and MSB Code, including failures on Principal Person notifications and span of control requirements.
• AML/CFT/CPF control gaps: Failures to retain customer ID documents, identify linked transactions, maintain a PEP policy, record transaction purpose, and screen customers adequately.
• Monitoring and reporting deficiencies: No comprehensive risk-based compliance monitoring programme; MLCO and MLRO reports to the Board were limited, static, and lacked trend analysis; the Board received no Compliance Officer reporting.
• Training shortfalls: AML/CFT/CPF training was not tailored to staff roles and did not cover countering terrorist financing.
• SAR handling failures: JPL did not establish and maintain proper procedures for investigating and documenting internal suspicious activity reports, resulting in unclear SARs submitted to the FIU.
• Remediation taken: JPL cooperated fully, appointed a new Board and Group Head of Compliance, conducted training, ceased agency banking and money transfer services, and reviewed its future financial services offering.

The statement is issued under Articles 25(b) of the FS(J)L and 26(b) of the Supervisory Bodies Law to support the JFSC's objectives of protecting Jersey's reputation for integrity and countering financial crime. It is informational in nature, documenting past findings and JPL's remediation rather than imposing new ongoing requirements on other entities.

Applies to

money service businesses, postal operators providing financial services, registered persons regulated under the FS(J)L