AML/CFT

Who is caught

The instruments indexed here apply AML/CFT/CPF obligations across two overlapping populations: persons registered and supervised by the JFSC under the sector regulatory laws, and persons registered as Schedule 2 financial services businesses under Jersey's proceeds-of-crime framework. The AML/CFT/CPF Handbook and the Money Laundering (Jersey) Order 2008 are the recurring sources of detailed obligation referenced across these documents.

Schedule 2 businesses

• Financial crime registration: Persons conducting a Schedule 2 activity as a business must register with the JFSC under the Proceeds of Crime (Supervisory Bodies) (Jersey) Law 2008; this captures Financial Institutions, Designated Non-Financial Businesses or Professions (DNFBPs) and Virtual Asset Service Providers (VASPs).
• Conducted-as-a-business test: Guidance on Article 36 of the Proceeds of Crime (Jersey) Law 1999 sets non-exhaustive indicators (holding out to the public, profit motive, multiple customers) for whether an activity is carried on as a business and so in scope.
• In or from within Jersey: Separate guidance determines when a non-Jersey entity or individual is carrying on Schedule 2 activity in or from within Jersey (management and control, physical presence, or permanent staff or agents in Jersey).
• VASPs: Providing a platform for virtual asset dealing, or services over instruments enabling control of virtual assets (such as custody of cryptographic keys), brings a person within the VASP definition.
• Non-Professional Trustees: Acting as trustee of an express trust is in scope; Non-Professional Trustees are deemed financial services business without meeting the as-a-business test.

Regulated sector firms

• Financial Services Law firms: Investment business, trust company business, fund services business, AIF services business, money service business and general insurance mediation business registered under the Financial Services (Jersey) Law 1998 are subject to AML obligations through their Codes of Practice.
• Banks: Jersey Incorporated Banks and Overseas Incorporated Banks registered under the Banking Business (Jersey) Law 1991 must address AML/CFT compliance, including in the annual Declaration of Compliance and at licensing.
• Insurance permit holders: Permit holders under the Insurance Business (Jersey) Law 1996 are covered through the Insurance Business Code of Practice and its Annual Declaration.
• Funds and service providers: Jersey Private Funds and Private Placement Funds, their Designated Service Providers, and Anti-Money Laundering Services Providers are treated as, or support, Schedule 2 businesses under the Money Laundering (Jersey) Order 2008.
• Issuers: IC/TO issuers and issuers of tokenised real world assets must assess whether they meet the VASP definition and apply AML/CFT/CPF controls through their COBO consent conditions.

Beneficial ownership

Under the Financial Services (Disclosure and Provision of Information) (Jersey) Law 2020, Jersey companies, foundations, incorporated and separate limited partnerships, LLCs and LLPs (and the regulated providers that administer them) must disclose beneficial ownership and significant person information, which the JFSC may use and disclose for AML/CFT purposes.

Sources: Financial Services (Disclosure and Provision of Information) (Jersey) Law 2020 · Financial Services (Jersey) Law 1998 · Insurance Business Code of Practice · The application process for issuers of initial coin and token offerings (IC/TOs) · Registry guidance on beneficial ownership and control (Last revised 2026-03-31) · Guidance on interpretation of 'in or from within Jersey' for the purposes of Proceeds of Crime (Supervisory Bodies) (Jersey) Law 2008 · Guidelines on interpretation of Article 36 of the Proceeds of Crime (Jersey) Law 1999 · Jersey Private Fund Guide · Jersey Private Placement Fund Guide · Tokenisation of real world assets (RWAs) Guidance Note · Travel Rule guidance note · Guidance to Schedule 2 Supervisory Bodies Law Registration Form - myJFSC (Revised January 2024) · Guide to Anti-Money Laundering Services Provider Application Process · Deposit-taking Business Code of Practice - Declaration of Compliance · Bank licensing policy

Key duties

The core continuing obligation is to comply with Jersey's AML/CFT/CPF regime (the Money Laundering (Jersey) Order 2008 and the AML/CFT/CPF Handbook) and to evidence that compliance to the JFSC. The duties below recur across the indexed instruments; several carry fixed deadlines.

Registration and governance

• Register: Register as a Schedule 2 business under the Supervisory Bodies Law where required, and specify all activities conducted both at registration and on an ongoing basis; registered persons must also be registered under the Financial Services (Jersey) Law 1998 or relevant sector law.
• MLRO and MLCO: Appoint and maintain a Money Laundering Reporting Officer and Money Laundering Compliance Officer; sole traders may be deemed their own compliance officer under the Money Laundering (Jersey) Order 2008.
• Risk assessments: Produce and maintain a Business Risk Assessment and customer risk assessments covering ML, TF and PF risk, and factor in the Sound Business Policy where applicable.
• CDD and monitoring: Apply customer due diligence (enhanced for higher-risk cases), monitor transactions for suspicious activity, file suspicious activity reports and keep related records.

Monitoring and remediation

• Compliance monitoring plan: Maintain a documented, risk-based compliance monitoring plan covering regulatory and financial crime obligations and the AML/CFT/CPF Code, report to the board as a standing agenda item, and record breaches.
• Remediation plans: Where an examination or finding identifies deficiencies, prepare a remediation action plan; the JFSC has a low tolerance for plans running beyond 12 months and expects a completion attestation.

Filings and declarations

• Supervisory risk data: Complete and return the annual supervisory risk data collection by the JFSC's deadline; the 2025 SRDC is issued on 2 February 2026 with submission due by 30 April 2026.
• Banking declaration: Each accounting period, banks must produce a Declaration of Compliance addressing AML/CFT compliance, which their auditor reports on to the JFSC.
• Insurance declaration: Permit holders must submit an Annual Declaration confirming compliance with AML/CFT/CPF requirements and the Code, noting material exceptions.
• Sole trader filing: Natural persons carrying on a single class of trust company business must file the Annual Registration Fee and Update Form by 31 January, with a signed AML/CFT compliance declaration.
• JPF returns: Designated Service Providers must complete the JPF Annual Return accurately and notify material issues within 28 calendar days via the prescribed form.

Notification and beneficial ownership

• Beneficial ownership: Under the Disclosure Law, provide beneficial owner and significant person information on establishment, notify changes within 21 days, and submit an annual confirmation statement within the relevant period (1 January to end of February).
• Travel Rule: VASPs must maintain a functioning Travel Rule solution and ensure required originator and beneficiary information accompanies virtual asset transfers.
• Sanctions: Relevant financial institutions and supervised persons must comply with targeted financial sanctions on terrorist financing and proliferation financing, including freezing designated persons' assets without delay.

Sources: Financial Services (Disclosure and Provision of Information) (Jersey) Law 2020 · Insurance Business Code of Practice · Registry guidance on beneficial ownership and control (Last revised 2026-03-31) · Guidance Note: Compliance Monitoring · Countering proliferation of weapons of mass destruction and its financing (Guidance on countering the financing of proliferation of weapons of mass destruction) · Guidelines on interpretation of Article 36 of the Proceeds of Crime (Jersey) Law 1999 · Jersey Private Fund Guide · Jersey Private Funds Annual Compliance Returns · Guidance Note: Natural Persons carrying on a single class of Trust Company Business · Guidance Note: Remediation Action Plans · Sound Business Policy · Terrorist Financing (JFSC Guidance Note) · Travel Rule guidance note · Updates to our 2024 supervisory risk data collection (2024-09-27) · Updates to our 2025 supervisory risk data collection · Schedule 2 Supervisory Bodies Law Registration Form: guidance for individual sole trader Schedule 2 directors · Guide to Anti-Money Laundering Services Provider Application Process · Deposit-taking Business Code of Practice - Declaration of Compliance

Exemptions and carve-outs

The indexed instruments provide a number of carve-outs, some from registration and some from specific AML reporting or disclosure steps.

• Financial Services Law exemptions: Schedule 2 to the Financial Services (Jersey) Law 1998 exempts categories of business and persons from registration across investment, trust company, general insurance mediation, fund services and AIF services business.
• Non-Professional Trustees: Non-Professional Trustees are not required to register with the JFSC but remain subject to AML/CFT/CPF obligations as modified by the Proceeds of Crime (Duties of Non-Professional Trustees) (Jersey) Order 2016.
• Out-of-scope FI arrangements: Financial Institution activities must be conducted for or on behalf of a customer to be in scope; intra-group, employee and sole-owner arrangements are generally excluded unless third parties or other activities bring them in.
• In or from within Jersey exclusions: Schedule 2 activity provided solely from outside Jersey, advice merely received in Jersey, an overseas person dealing with a person in Jersey, and a customer giving effect to a contract from Jersey are not treated as carried on in or from within Jersey.
• Low Risk Financial Services Business: Businesses exempted under the Proceeds of Crime (Low Risk Financial Services Business) (Jersey) Order 2024 need not consider the Sound Business Policy in their risk assessments.
• Travel Rule thresholds: For transfers below EUR 1,000, verification of payer information is not required absent suspicion; same-VASP and own-behalf transfers are out of scope.
• Transitional sole trader relief: Until 30 September 2024, individual sole trader Schedule 2 directors could disapply certain SBL form requirements (risk assessment, written policies, MLRO appointment), though CDD, monitoring, SAR filing, sanctions reporting and record-keeping duties continued.
• Insurance workbook relief: Category A insurance permit holders not meeting the in or from within test are excused from the insurance business SRDC workbook but must still complete the Section I footprint workbook.

Sources: Financial Services (Jersey) Law 1998 · Guidance on interpretation of 'in or from within Jersey' for the purposes of Proceeds of Crime (Supervisory Bodies) (Jersey) Law 2008 · Guidelines on interpretation of Article 36 of the Proceeds of Crime (Jersey) Law 1999 · Sound Business Policy · Travel Rule guidance note · Updates to our 2024 supervisory risk data collection (2024-09-27) · Schedule 2 Supervisory Bodies Law Registration Form: guidance for individual sole trader Schedule 2 directors

Enforcement and penalties

Enforcement runs along both criminal and civil lines, and the JFSC also uses public statements and supervisory tools. The documents attribute penalty powers to specific instruments, which should be kept distinct.

Civil financial penalties

• Natural persons methodology: The JFSC's methodology sets civil financial penalties on natural persons for significant and material contraventions of the Money Laundering (Jersey) Order 2008 or a JFSC Code of Practice, using its powers under the Financial Services Commission (Jersey) Law 1998 and the Financial Services Commission (Financial Penalties) (Jersey) Order 2015.
• Penalty bands: Four bands apply for natural persons: Band 1 (failure to notify, up to £10,000), Band 2 (uncured, up to £200,000), Band 2A (negligent, up to £300,000) and Band 3 (intentional or reckless, up to £400,000), with early-settlement discounts of up to 50%.
• Worked example: Garfield Bennett Trust Company Limited was fined £86,803.19 on 31 July 2025 under the Financial Services Commission (Jersey) Law 1998 for negligent contraventions of the Trust Company Business Code and AML/CFT Code, reflecting a 50% early-settlement discount.
• Appeal: A person penalised may appeal to the Royal Court under Article 21F of the Commission Law on the ground that the decision was unreasonable.

Criminal offences

• Unauthorised Schedule 2 business: Conducting Schedule 2 business without registering where required is an offence under the Supervisory Bodies Law carrying up to 7 years' imprisonment and a fine.
• False information (Disclosure Law): Providing false or misleading information and non-compliance with notification, annual confirmation or nominated person duties without reasonable excuse are offences under the Disclosure Law.
• False declarations (Banking Law): Knowingly or recklessly providing false or misleading information in purported compliance is an offence under Article 22 of the Banking Business (Jersey) Law 1991.
• Market abuse: The Financial Services (Jersey) Law 1998 creates offences of insider dealing, market manipulation and providing misleading information in relation to securities.

Supervisory and public powers

• Code breaches: Breach of the Investment Business, Money Service Business or Insurance Business Codes is not itself an offence but is grounds for JFSC regulatory action, including directions, public statements, financial penalties or revocation or cancellation of registration or permit.
• Financial Services Law powers: The Financial Services (Jersey) Law 1998 empowers the JFSC to issue directions, injunctions, remedial orders and public statements, to intervene, and to investigate and require information.
• Criminal referral: The JFSC may refer possible criminal offences discovered in its functions to the police and/or the Attorney General, who alone decides on prosecution.
• Public warnings: The JFSC issues public statements and warning notices against unauthorised or impersonating entities, including under Article 26(c) of the Supervisory Bodies Law and Article 48(2) of the Banking Business (Jersey) Law 1991.
• Late filing fees: Failure to return a supervisory risk data collection by the deadline is a Code of Practice breach that may trigger a late filing fee.

Sources: Financial Services (Disclosure and Provision of Information) (Jersey) Law 2020 · Financial Services (Jersey) Law 1998 · Insurance Business Code of Practice · Investment Business Code of Practice · Money Service Business Code of Practice · Civil Financial Penalties on Natural Persons: Methodology for Determining the Amount · Guidelines on interpretation of Article 36 of the Proceeds of Crime (Jersey) Law 1999 · Guidance note: making a referral to the police and/or the Attorney General (2024-04-16) · Updates to our 2024 supervisory risk data collection (2024-09-27) · Dandoo Express Group Plc (the scam entity) (2025-12-04) · Garfield Bennett Trust Company Limited (2025-08-06) · Aaron Gibbs (Mr Gibbs) (2023-09-08) · Recovered Fund Account (2005-07-05) · Deposit-taking Business Code of Practice - Declaration of Compliance