Jersey’s finance sector watchdog is considering tightening up background checks “to prevent criminals and their associates from owning, controlling or being in a position of key influence” in Jersey entities – and is inviting businesses and the public to weigh in on the proposed changes.

The Jersey Financial Services Commission (JFSC) has launched a public consultation seeking views on enhancements to its screening process, which could impact those applying for roles that require regulatory approval.

What’s changing?

The key proposed change would see individuals applying for certain senior roles within regulated businesses – such as directors, key persons, and principal persons – required to provide a criminal record check as part of their ‘fit and proper’ assessment.

Updated certificates would also be required to be provided upon certain defined events or at least once every three years.

Meanwhile, dupervised entities would be obligated to regularly assess the fitness and propriety of their senior figures, ensuring that individuals in these roles maintain the necessary standards of integrity and competence.

Why?

Explaining the reasoning behind the proposed changes, the JFSC stated in its consultation document that they were seeking to “strengthen our current regulatory regime” to prevent criminals and their associates from taking on key roles in regulated entities in a way that was consistent across all firms and sectors.

“Our proposals aim to achieve this in a proportionate, cost-efficient manner that does not adversely impact the competitiveness and attractiveness of Jersey as a place to do business,” the document said.

The document said the JFSC wanted seeking to reinforce systems that firms should already have in place to check the criminal history of those acting as principal persons (PPs) and key persons (KPs).

Aiming to reduce reputational risks, prevent customer losses, and mitigate the financial risks businesses could face if they unknowingly enable financial crime, the proposals directly respond to recommendations made by European anti-money laundering monitoring body Moneyval, the JFSC said.

They also form part of a wider, government-led initiative to implement the Financial Action Task Force (FATF) recommendations, in collaboration with other island agencies.

Have your say

Ahead of introducing the changes, the JFSC is now seeking input from businesses, industry professionals, and members of the public who may be affected by the changes.

A consultation document has been published, and stakeholders are invited to read it, join drop-in sessions to find out more, and submit their feedback online by 11:59pm on Wednesday 26 March.

A feedback paper for is due to be published on Wednesday 7 May 2025.