New World Oil & Gas Plc (2017-07-18)

Summary

This is a public statement issued by the Jersey Financial Services Commission (JFSC) under Article 26(b) and (c) of the Proceeds of Crime (Supervisory Bodies) (Jersey) Law 2008, setting out findings against New World Oil & Gas Plc, an unregulated exchange traded fund incorporated in Jersey. It is an enforcement/naming disclosure rather than a rule change, describing historical anti money laundering compliance failures identified by the JFSC.

New World registered as an unregulated exchange traded fund in 2011 and, as such, conducted financial services business and was deemed a relevant person under the Money Laundering (Jersey) Order 2008 (MLO). Following delisting from AIM in November 2016, the JFSC reviewed the company's status and AML compliance history, identifying several breaches.

• Customer due diligence: New World failed to perform timely identification and ongoing monitoring of all customers (shareholders).
• Reliance on third party CDD: New World relied on Article 13(11) of the MLO for secondary market shareholders without first obtaining the required assurances from the other regulated person.
• Compliance officer appointments: New World did not appoint a Money Laundering Compliance Officer or Money Laundering Reporting Officer from 7 April 2011 to 23 November 2015.
• Policies and procedures: Even after appointing these officers in November 2015, New World failed to have adequate AML policies and procedures in place until 10 February 2017.

The JFSC notes that New World has since engaged openly with the Commission and is remediating the identified issues. The statement serves as a public record of the findings and a reminder of the AML obligations applicable to relevant persons, including unregulated funds.

Key obligations

• Relevant persons carrying on financial services business (including unregulated funds) must perform timely customer due diligence, including identification and ongoing monitoring, on all customers.
• Where relying on another regulated person's equivalent identification measures under Article 13(11) of the MLO, a relevant person must obtain the necessary assurances from that other regulated person in advance.
• Relevant persons must appoint a Money Laundering Compliance Officer and a Money Laundering Reporting Officer.
• Relevant persons must maintain appropriate policies and procedures to prevent and detect money laundering.

Applies to

unregulated funds, relevant persons under the Money Laundering (Jersey) Order 2008, financial services businesses