Given that the JFSC has stated that it is looking to build a track record of effective risk-based assessment ahead of Jersey’s next MoneyVal evaluation in 2021/2022, we would not be surprised to see further enforcement action in the upcoming 18 months.

So rather than being outliers we consider these two cases to be indicative of a new normal to be expected from the JFSC. In any event, regularly reviewing and testing your AML/CFT processes and policies is the best way for a regulated entity to ensure that it complies with its obligations and avoid such penalties. Given the amendments made to the Money Laundering Order 2008 over the last 12 months, now would be a sensible time for businesses to review their compliance measures.

The increased use of the civil financial penalty regime should not be taken lightly by regulated entities or their principals, especially since the JFSC also has the power to impose similar civil penalties on ‘principal persons’ of a ‘registered person’ (i.e., a regulated entity). However, the threshold for imposing a civil financial penalty on a principal person is high – there must be a significant and material contravention by a registered person and such contravention was (i) committed with the consent or connivance of, or is attributable to neglect on the part of a principal person or (ii) aided, abetted, counselled or procured by a principal person.

The offshore market represents a unique and evolving regulatory environment, and one that can be high profile if things go wrong. Appleby have a global network of experts on hand to advise clients who want to alleviate the burden of understanding each offshore jurisdiction’s regulatory frameworks and requirements.

If you have any concerns about your business’s AML/CFT policies and processes, or if you simply want to discuss how your business’ policies and procedures can be tested against the legal framework, we invite you to get in touch with one of our team of specialists.

Type

Insight

Locations

Jersey

Key Contacts

Andrew Weaver

Partner: Jersey

T +44 (0)1534 818 230
E Email Andrew

James Gaudin

Managing Partner: Jersey

T +44 (0)1534 818 337
E Email James

Daniel Healy

Senior Associate: Jersey

T +44 (0) 01534 818 010
E Email Daniel

Share
Twitter LinkedIn Email Save as PDF
More Publications
22 Sep 2021 |

Minute Writing Training

Trustees are under a statutory duty to keep accurate records of their trusteeship, but what does tha...

2 Sep 2021 |

Duties of Trustees

The relationship of trustees to beneficiaries is viewed as fiduciary, meaning there are certain equi...

18 Aug 2021 |

Beneficial Owners and Controllers (BOC)

The aim of BOC is to drill-down to the identification of persons who are the beneficial owners and c...

30 Jul 2021 |

Fighting international fraud

First published in New Law Journal, July 2021. Appleby partners Anthony William and Jared Dann an...

Contributors: Jared Dann, Claire Corkish
27 Jul 2021 |

Fund Finance Update – Will Jersey’s new sustainable investment disclosure requirements aid ESG financing?

This article provides an overview of ESG, the hot topic of 2020 that is carrying on full steam throu...

Contributors: Daniel Healy
22 Jul 2021 |

Listing Variable Funding Notes (VFNs) on The International Stock Exchange

This article provides a summary of Appleby listing agent services in the Channel Islands, and also o...

1 Jul 2021 |

Saunders v Vautier where the beneficial class is not closed - the debate goes on...

The rule in Saunders v Vautier is familiar territory for trust lawyers.  In the modern world it is ...

17 Jun 2021 |

Solvency Statements under Companies (Jersey) Law 1991 - Is it time to go paperless?

In April of this year, the Royal Court of Jersey considered the practicalities around the making of ...

Contributors: Kevin McQuillan
11 Jun 2021 |

“Offshore intelligence – Funds in demand” Appleby Podcast

We have recently produced a podcast focused on the Funds industry entitled “Offshore Intelligence ...

2 Jun 2021 |

Why use Jersey entities in restructurings?

As the extension of various forbearance measures and fiscal support packages continues in response t...

Contributors: Gemma Whale, Andrew Weaver