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A major inspection of Guernsey’s financial services regulation has concluded that the Island has to strengthen penalties for money-laundering and terrorist-financing offences.
The report by EU experts Moneyval has also urged the island to increase the number of investigations, prosecutions and convictions for money-laundering offences.
But the report has also praised Guernsey’s “mature legal and regulatory system” and says it has been improved by the introduction of modern legislation.
The notes of criticism in the report have been ignored in the response by Guernsey Finance – the promotional and marketing body for the industry – which describes the MONEYVAL assessment as “highly positive”.
That statement quotes Guernsey’s Chief Minister Jonathan Le Tocq and Commerce and Employment Minister Kevin Stewart, welcoming the findings.
The work to compile report took place in 2014 and 2015, and included inspectors coming to the Island.
The Guernsey authorities have been asked to report back to MONEYVAL in September next year on progress that they have made towards improvements.
The statement from MONEYVAL announcing the report’s publication said: “Council of Europe experts on money laundering and the financing of terrorism have urged the United Kingdom’s Crown Dependency of Guernsey to increase the penalties which can be applied to financial institutions in this area.
“Further progress is needed in the number of investigations, prosecutions and convictions concerning money laundering and the financing of terrorism, and the use of restraint and confiscation orders could also be improved.
“Overall, however, Guernsey has a mature legal and regulatory system, which has been enhanced by the introduction of modern legislation covering all important aspects of the finance industry.”
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