DNFBPs

Who is caught

These instruments concern persons who must register with the JFSC as a Schedule 2 business under the Proceeds of Crime (Supervisory Bodies) (Jersey) Law 2008, by reference to the activities set out in Schedule 2 to the Proceeds of Crime (Jersey) Law 1999. Schedule 2 covers Financial Institutions, Designated Non-Financial Businesses or Professions (DNFBPs), and Virtual Asset Service Providers (VASPs). The topic here centres on DNFBPs, but the same registration framework runs across all three categories.

Entities caught

• DNFBPs: Accountants, lawyers, estate agents (real estate agency services), high value goods dealers, casinos, and trust and company service providers, as identified across the enforcement notices and forms.
• Financial Institutions and VASPs: FI activities and VASP activities also fall within Schedule 2; 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 even without dealing on own account.
• Trustees: Acting as trustee of an express trust is in scope; Non-Professional Trustees are deemed to be conducting financial services business without needing to meet the 'as a business' test.

What brings a person in scope

• Conducted as a business: Under the Article 36 guidance, a Schedule 2 activity must be carried on as a business (indicators include holding out to the public, profit motive, level of compensation, and multiple activities or customers) and, for FI activities, conducted for or on behalf of a customer.
• In or from within Jersey: A non-Jersey entity is in scope where it is managed and controlled from Jersey, has a physical presence in Jersey, or has employees or agents operating in Jersey with a degree of permanence; a non-Jersey individual is in scope where they have a fixed or serviced office in their own name in Jersey.
• Directors providing services as a business: Following the AML/CFT scope reforms, anyone providing director services as a business is conducting trust and company service provider business; the previous de-minimis exemption for directors of up to six companies no longer applies.

Sources: 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 · Feedback Paper on Consultation No. 15 2022 - Proceeds of Crime (Supervisory Bodies) fees (2022-12-30) · Feedback on follow on consultation on AML/CFT scope exemptions (2022-12-15) · Notification of change of principal person, money laundering reporting officer or money laundering compliance officer for Schedule 2 business · Notification of Regulated Business - Additional Schedule 2 Business · Mr Kevin Robert Manning (R) (2019-11-20)

Key duties

The core duty is to register with the JFSC before carrying on Schedule 2 business, followed by continuing notification, fee, data-reporting and AML/CFT obligations. Registration is made through the myJFSC portal using the Schedule 2 Supervisory Bodies Law registration form.

Registration and notifications

• Register as a Schedule 2 business: Persons conducting Schedule 2 activities as a business in or from within Jersey must register with the JFSC; registration requires business details, identification of directors, shareholders holding 10% or more, the MLRO and MLCO, certified passport copies, and disclosure of AML/CFT/CPF governance.
• Notify additional Schedule 2 business: A person already regulated under specified Jersey financial services laws that also carries on Schedule 2 business must notify the JFSC under Article 11(6) of the 2008 Law using the notification form.
• Notify changes of key individuals: A registered person must notify the JFSC of a change to its Principal Person, MLCO or MLRO within one month of the appointment taking effect or the individual ceasing to act, with a certified passport copy for new appointments.
• Specify all activities: A registered business must specify all activities and operations it conducts, both at registration and on an ongoing basis, and consider whether different regulatory requirements apply to each.

Fees and filings

• Annual fee: Registered persons must pay the annual fee (a base fee plus a per-employee element, subject to caps or, from 2024, no cap) in full on or before 31 March each year; fee levels and caps have changed across successive fee notices.
• Fee-calculation data: Firms must supply the information needed to calculate their fee by the relevant deadline or incur a recurring £100 monthly administration fee.
• Supervisory risk data collection: Registered and supervised persons must complete and return the JFSC's supervisory risk data collection (SRDC) workbooks by the stated deadline; failure to do so is a Code of Practice breach that may trigger a late filing fee.
• Application and amendment fees: Non-refundable application fees and amendment fees apply, with a discount where registration is made via an Anti-Money Laundering Services Provider (AMLSP).

AML/CFT and record-keeping

• AML/CFT/CPF obligations: Supervised persons must comply with the AML/CFT/CPF Handbook and Codes of Practice, including maintaining a business risk assessment, customer due diligence, ongoing monitoring, sanctions screening for all relationships, and PEP handling.
• Core obligations that persist: Even where certain governance requirements were temporarily disapplied for sole trader Schedule 2 directors until 30 September 2024, they still had to conduct CDD, monitor for suspicious activity, file and keep records of suspicious activity reports, report financial sanctions breaches, and keep general records.
• Non-Professional Trustees: Non-Professional Trustees, although not required to register, must comply with AML/CFT/CPF obligations as modified by the Proceeds of Crime (Duties of Non-Professional Trustees) (Jersey) Order 2016.
• Use of an AMLSP: A relevant person may appoint an AMLSP to help fulfil its obligation to appoint an MLCO and MLRO, but cannot delegate its underlying responsibility as a Schedule 2 business.

Sources: Guidelines on interpretation of Article 36 of the Proceeds of Crime (Jersey) Law 1999 · Updates to our 2024 supervisory risk data collection (2024-09-27) · Updates to our 2025 supervisory risk data collection · JFSC Feedback on Consultation No.12 2023 · Feedback Paper on Consultation Paper No. 5 2023 · Feedback on Consultation No.1 2023: Proceeds of Crime (Supervisory Bodies) (Jersey) Law 2008 - Fees for registered persons · Feedback Paper on Consultation No. 15 2022 - Proceeds of Crime (Supervisory Bodies) fees (2022-12-30) · Feedback Paper on Consultation Paper No.12 2022 – Further enhancements to the AML/CFT Handbook · Feedback on Consultation No. 8 2021 – Fees for DNFBP registered persons (Proceeds of Crime (Supervisory Bodies) (Jersey) Law 2008) · Feedback on Consultation Paper No. 9 2020: DNFBP Fees under the Proceeds of Crime (Supervisory Bodies) (Jersey) Law 2008 · Feedback Paper on Consultation Paper No. 3 2020: Revision to the AML/CFT Handbooks · Guidance to Schedule 2 Supervisory Bodies Law Registration Form - myJFSC (Revised January 2024) · Schedule 2 Supervisory Bodies Law Registration Form: guidance for individual sole trader Schedule 2 directors · Notification of change of principal person, money laundering reporting officer or money laundering compliance officer for Schedule 2 business · Notification of Regulated Business - Additional Schedule 2 Business · Guide to Anti-Money Laundering Services Provider Application Process · Notice issued under Article 9A(4) of the Money Laundering (Jersey) Order 2008 (2023-04-21)

Exemptions and carve-outs

The instruments provide several carve-outs, some structural and some transitional. Note that a wider reform recasting Schedule 2 around FATF definitions has narrowed the exemptions available.

• Non-Professional Trustees: Deemed to be conducting financial services business but not required to register with the JFSC, subject instead to modified AML/CFT/CPF obligations.
• Activity provided solely from outside Jersey: Schedule 2 activity provided solely from outside Jersey as a result of marketing, soliciting or targeting Jersey clients is not treated as carried on in or from within Jersey.
• Advice, overseas person and contract exclusions: Advice is not in scope solely because received in Jersey; an overseas person is not in scope solely because the client is in Jersey; and an activity is not in scope solely because a customer gives effect to a contract from within Jersey.
• Intra-group and sole-owner arrangements: For Financial Institutions, intra-group, employee and sole-owner arrangements are generally excluded unless third parties or other activities bring them into scope.
• NPO reporting exclusion: Independent registered non-profit organisations that are not Prescribed NPOs are excluded from the supervisory risk data collection.
• Insurance footprint carve-out: Category A insurance permit holders that do not meet the 'in or from within' test are excused from the insurance business workbook, though they must still complete the Section I footprint workbook.
• Director exemptions removed: The AML/CFT scope reforms removed all director exemptions, including the previous de-minimis exemption for directors of up to six companies.
• Transitional relief for sole trader directors: Certain governance-related registration form requirements were temporarily disapplied for individual sole trader Schedule 2 directors until 30 September 2024, after which the full requirements were expected to apply again.

A recast of Schedule 2 provides that future AML/CFT scope exemptions will only be granted where a demonstrably low risk of money laundering or terrorist financing is established under FATF Recommendation 1 criteria, by Ministerial Order.

Sources: 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 · Updates to our 2024 supervisory risk data collection (2024-09-27) · Updates to our 2025 supervisory risk data collection · Feedback on follow on consultation on AML/CFT scope exemptions (2022-12-15) · Feedback on consultation on AML/CFT scope exemptions (2022-02) · Schedule 2 Supervisory Bodies Law Registration Form: guidance for individual sole trader Schedule 2 directors

Enforcement and penalties

Enforcement operates through criminal offences, JFSC directions against individuals, an expanding civil financial penalties regime, and administrative late fees.

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; the JFSC has issued public warning statements against unregistered and impersonating entities for breaching Article 10 of that Law.
• Notification failure: Failure to comply with the Money Laundering (Jersey) Order 2008 notification requirement is an offence under Article 37(4) of the Proceeds of Crime (Jersey) Law 1999, punishable by a fine.
• Breach of directions: Where directions are issued against an individual, breach of those directions is itself an offence under Article 23(15) of the Supervisory Bodies Law, and any person who knowingly allows the individual to work in contravention also commits an offence.

Directions against individuals

• Prohibition and fitness: Following fitness and propriety reviews or convictions, the JFSC has issued directions under Article 23 prohibiting named individuals from performing any function, being employed by, or holding any position in a Schedule 2 business or JFSC-regulated business, in some cases without prior written JFSC approval.
• Public statements: These directions are published under Article 26 of the Supervisory Bodies Law and remain in force until successfully varied or withdrawn on application.

Civil financial penalties

The Government of Jersey confirmed policy decisions to extend the JFSC's civil financial penalties regime to DNFBPs (casinos, real estate agents, accountants, lawyers) and to directors, key persons and senior management including MLROs, and to cover significant and material contraventions of the Money Laundering (Jersey) Order itself. These were confirmed policy positions requiring legislation rather than immediately enacted powers as described in the documents; the summaries also note removal of penalty caps for registered persons (not natural persons).

Administrative fees

• Late payment: Unpaid annual fees attract a 5% late payment charge from the day after the due date, recurring monthly.
• Late filing: Failure to file or deliver a required document by its due date incurs a £100 fee for each complete month or part-month it remains outstanding, unless the JFSC has agreed a later date in writing; missing SRDC returns may trigger a late filing fee as a Code of Practice breach.

Sources: Guidelines on interpretation of Article 36 of the Proceeds of Crime (Jersey) Law 1999 · Updates to our 2024 supervisory risk data collection (2024-09-27) · Feedback Paper on Consultation No. 15 2022 - Proceeds of Crime (Supervisory Bodies) fees (2022-12-30) · Consultation on Jersey Financial Services Commission Civil Penalties Extension (2021-07-07) · Response Paper: Consultation on amendments under the Financial Services Commission (Jersey) Law 1998 regarding the civil financial penalties regime (2021-12-03) · Notification of change of principal person, money laundering reporting officer or money laundering compliance officer for Schedule 2 business · Haman Wong Solicitors LLP (the scam entity) (2021-12-23) · Channel Island Business Brokers (2021-05-24) · Mr Kevin Robert Manning (R) (2019-11-20) · Mr Stephen Andrew Homyard (2016-08-16) · Mr Aldwyn Percival Sully (R) (2012-05-16)