Financial Services (Money Service Business (Exemptions)) (Jersey) Order 2007

Summary

This Order sets out exemptions from registration under the Financial Services (Jersey) Law 1998 for certain persons who carry on money service business, such as bureaux de change and personal or occasional currency and cheque transactions. It also creates a turnover based exemption and an exemption for persons already regulated as banks, along with transitional protections when an exemption ceases to apply.

• Personal exemptions: Certain bureaux de change transactions, personal fund transmission for paying for goods or accessing one's own funds, and cheque cashing drawn on the drawer's own bank account are automatically exempt (prescribed persons) and do not require registration.
• Low turnover exemption: A person carrying on money service business is exempt if turnover for the last completed financial period is less than 300,000 pounds, provided the Commission is notified in writing of the intention to rely on this exemption.
• Growing above threshold: If turnover later exceeds 300,000 pounds, the exemption continues for 10 months after the end of that financial period (7 months for a public company) before registration becomes required.
• Bank exemption: A person registered under the Banking Business (Jersey) Law 1991 is exempt from money service business registration provided the Commission is notified in writing.
• Conditions on exemptions: Persons exempt under Articles 4 or 5 are still subject to specified provisions of the Financial Services (Jersey) Law 1998 (Articles 12, 23 to 26, 28, 32 to 39 and 41) as if they were registered.
• Profit and loss accounts: Exempt status under the turnover test depends on a profit and loss account prepared according to specified accounting and approval requirements, completed within 10 months after the end of the relevant financial period.
• Ceasing or not commencing business: A person who has notified the Commission of reliance on an exemption must notify the Commission if they cease the business or decide not to commence it, within 3 months of that event.
• Transitional relief: If an exemption ceases to apply, a person is protected from committing an offence for up to 6 months (or, if they apply for registration within one month, until that application is finally determined) while the relevant statutory provisions continue to apply to them as if registered.

Key obligations

• A person relying on the turnover exemption under Article 4(1) must notify the Commission in writing of intent to carry on money service business under that exemption.
• A person relying on the banking exemption under Article 5(1) must notify the Commission in writing that they intend to carry on money service business.
• A person who has notified the Commission under Article 4(1)(a) or 5(1)(a) must notify the Commission within 3 months of ceasing to carry on the money service business.
• A person who has notified the Commission under Article 4(1)(a) or 5(1)(a) must notify the Commission within 3 months of deciding not to commence the money service business.
• A person relying on the turnover exemption must ensure a profit and loss account is prepared and approved within 10 months after the end of the relevant financial period, in accordance with generally accepted accounting principles, accompanied by a written approval notice.
• A person whose exemption under Article 4(3) or 5(1) has ceased to apply and who wishes transitional relief from offence liability must apply for registration within one month of the exemption ceasing to apply.

Applies to

money service business operators, bureaux de change, persons providing cheque cashing services, persons providing money transmission or fund transfer services, persons registered under the Banking Business (Jersey) Law 1991, public companies carrying on money service business

Deadlines

• within 3 months of ceasing to carry on the money service business: Notify the Commission after ceasing the money service business specified in an exemption notification under Article 4(1)(a) or 5(1)(a)
• within 3 months of deciding not to commence the business: Notify the Commission after deciding not to commence the money service business referred to in an exemption notification
• 10 months after the end of the financial period: Prepare and approve a profit and loss account complying with Article 7(2) for purposes of the turnover exemption
• 10 months after the end of the last completed financial period for which turnover is 300,000 pounds or more (7 months for a public company): Period during which turnover exemption under Article 4(3) continues to apply after turnover rises above the specified amount, before registration is required
• within one month of the exemption ceasing to apply: Deadline to apply for registration to carry on money service business in order to obtain transitional protection under Article 9
• until 6 months after the exemption ceases to apply: Transitional period during which a person whose exemption ceased and who has not sought registration is protected from offence liability under Article 8
• 26 July 2007: Commencement date of the Order

Related documents

• This document is made under Financial Services (Jersey) Law 1998