Little change is expected in how the Guernsey Financial Services Commission supervises industry on the back of a crucial assessment report.
Its report has already been broadly welcomed by government, which this term has passed swathes of legislation and set up an independent financial crime apparatus to avoid being grey-listed.
GFSC Director General William Mason has said that the report recognises and reaffirms that Guernsey is a safe and secure jurisdiction that does not tolerate financial crime.
“This outcome is the result of a Bailiwick-wide effort and I would like to thank our staff, industry and other official sector actors who made a significant contribution to many of the immediate outcomes in the lead up to, during, as well as after, the onsite inspection in April 2024.
“Our result for supervision (IO3) is not unexpected, with only the Holy See receiving a higher rating in the whole of the Moneyval peer group.
“The report highlights the Commission’s good quality and thorough onsite examinations, which are complemented by other supervisory tools such as our leading AML technology, thematic reviews, as well as our industry training and outreach initiatives, which the report noted helped improve the overall compliance of regulated entities with AML/CFT obligations.
“That we are requested to do more but in a similar vein, in some areas probably indicates the proportionate approach the Commission endeavours to take to the international obligations to which the Bailiwick subscribes.”
Fiona Crocker, the Commission’s Director of the Financial Crime Division, added: “While the report recommends a number of actions relating to supervision, these are manageable, and we do not anticipate any fundamental changes to our supervisory approach.”
Among Moneyval’s recommendations that involve the GFSC is to intensify its actions to address underreporting and improve the quality and relevance of suspicious activity reports.
It has also been told to further enhance its supervisory role by recalibrating its risk categorisation process for investment firms and trust and corporate service providers.
Moneyval also recommended that it revisits the extent of client file sample size used in examinations, and their frequency, for medium-high risk entities to ensure these are adapted to size and risks.
Guernsey Finance Chief Executive Rupert Pleasant said that he takes its responsibilities to mitigate the risks of money laundering and terrorist financing extremely seriously.
“We are one of the few jurisdictions to pass all 40 FATF recommendations, and Guernsey was also recognised as having comprehensive measures to ensure beneficial ownership transparency. This proves that Guernsey’s levels of transparency meet the high standards needed to operate as a well-respected international finance centre.
“This reaffirms the news that Guernsey is committed to reaching the highest international standards.
“We can hold our heads high knowing that this result secures the Bailiwick’s position as one of the most secure and safe jurisdictions in the world for financial services. Guernsey is absolutely open for business and is a safe, stable and excellent place to do so.”
Guernsey has been placed in regular follow up by Moneyval.
Read the full assessment HERE.