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The finance industry regulator has published draft legislation that could significantly increase the number of financial services businesses falling into the scope of its anti-money laundering regime.
The Jersey Financial Services Commission says the proposals are broad, affecting regulated financial services businesses that provide services to exempt businesses, businesses that currently use AML exemptions that will now be removed and virtual asset service providers.
The legislation is a response to a 2015 report by the Council of Europe's MONEYVAL committee, which found that some of Jersey's scope exemptions from AML obligations are not compatible with Financial Action Task Force recommendations.
An initial consultation on the proposals was held in December 2021. Following the current consultation, it is proposed that exemptions are removed from January 2023, although a transition period will be provided.
The principal change concerns schedule 2 to the Proceeds of Crime (Jersey) Law 1999 (the 1999 Law), which specifies the types of activities that are financial services businesses that have to be registered with the JFSC either under the Proceeds of Crime (Supervisory Bodies) (Jersey) Law 2008 or one of the conduct of business and prudential regulatory laws.
Once registered, such businesses are supervised by the JFSC for AML purposes.
The island is preparing for a return MONEYVAL inspection next year.
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