Guernsey’s position as one of safest jurisdictions financial services has been secured, its government said yesterday off the back of a crucial assessment by Europe’s anti-money laundering body – but how did its results compare to Jersey?

The Council of Europe’s MONEYVAL review found that Guernsey fully complied with all 40 Financial Action Task Force (FATF) recommendations, making it one of the few jurisdictions to achieve this distinction. The island was also rated positively in six out of eleven effectiveness measures, reflecting its robust anti-money laundering (AML) and counter-terrorist financing (CTF) framework.

However, the report identified areas for improvement, particularly in the investigation and prosecution of financial crime, with authorities urged to take a more proactive approach in bringing complex cases to court.

Deputy Lyndon Trott (pictured top), the island’s Chief Minister and President of the leading Policy & Resources Committee, said the report gives Guernsey a strong international message to sell.

“Guernsey remains a very highly regarded international finance centre,” he said. “We are one of the best jurisdictions MONEYVAL has ever assessed in the global fight against financial crime.”

MONEYVAL praised Guernsey for its deep understanding of financial crime risks, a comprehensive beneficial ownership register, and strong international cooperation. The report recognised that Guernsey’s authorities take AML/CTF risks seriously and that the island has a robust system for preventing abuse of its financial system.

But prosecutions remain an issue, with the report flagging the low number of cases progressing to court as a weakness.

Moneyval found that fundamental improvements are needed to ensure the effective investigation, prosecution and conviction of money laundering cases in Guernsey.

Deputy Rob Prow, the island’s Home Affairs President, said: “I think the challenge is recognising where there were shortcomings, and having the courage to put the resource together in the right areas, certainly as far as legislation is concerned, and getting that legislation through the Assembly. 

“More than that, it’s looking at where you think your outcomes will be judged, and making sure you have the resource, you have the expertise in place.

“One of the challenges which we overcame was that we needed to take the law enforcement capacity out of mainstream law enforcement and set up the Economic and Financial Crime Bureau on an independent statutory basis. And the same with the Financial Investigation Unit, although there was an existing FIU, we had to change the concept and put it on a statutory basis as well.”

The Moneyval assessment comes at a time when the island’s economy is stagnating and, Deputy Trott said, if the island had been grey listed it would have caused a further decline in financial services of 10%.

“Our economy has underperformed, but I am extremely confident of the future on the back of this evaluation,” said Deputy Trott.

“This is a fantastic evaluation, which sends out a very strong message, and that is that we are a respected and internationally compliant international finance center, that we are open for business.”

How does Guernsey compare to Jersey?

Jersey received its MONEYVAL review last year, also securing strong results.

Like Guernsey, it was praised for understanding financial crime risks and maintaining a transparent beneficial ownership register.

However, Jersey’s report also pointed to supervision gaps and a lack of financial crime prosecutions, mirroring some of Guernsey’s challenges.

Both islands have been told to increase the number of money laundering investigations and convictions to reinforce their reputations as world-leading finance centres.

Guernsey’s authorities say they are taking the findings seriously and will continue to strengthen enforcement measures, ensuring that the island remains at the forefront of international financial regulation.

Full analysis of Jersey’s performance in the Moneyval assessment can be found here.