The Guernsey Financial Crime Supervision & Policy Division has prepared and issued a Guidance Note (“Note”) following analysis of both the results of onsite visits undertaken by the Commission since 2012 and trends identified from financial crime assessments undertaken at local and international level.

This Note is intended to further assist businesses in understanding the Commission’s expectations in relation to their compliance with the requirements of the Regulations and the rules in the Handbooks.

1. The topics covered include
2. Corporate Governance
3. Policies, Procedures and Controls
4. Business Risk Assessment
5. Customer Risk Assessments
6. Customer Due Diligence
7. Enhanced Due Diligence
8. Reliance on Others
9. Monitoring
10. Reporting of Suspicions
11. UN, EU and Other Sanctions

INTRODUCTION

1. This Guidance Note (“Note”) has been prepared following analysis by the Commission of both the results of onsite visits undertaken since 2012, along with trends that have been identified from financial crime assessments undertaken at the international level.
2. This Note is intended to further assist businesses in understanding the Commission’s expectations in relation to their compliance with the requirements of the Regulations and the rules in the Handbooks.
3. Businesses may adopt other appropriate and effective measures to those described in this Note, provided that they can demonstrate that those measures also achieve compliance with the Regulations and rules in the Handbooks.
4. This Note does not touch upon all of the requirements of the Regulations and rules in the Handbooks, nor is the content of this Note intended to amend, substitute, supersede or replace these rules and requirements.
5. The trends and observations identified in this Note are in addition to those matters identified in the “Dear CEO” letter issued by the Commission on 27 May 2014, and the Instruction issued to licensed fiduciary businesses on 28 May 2014.
1. Reference should therefore be made to these documents, along with any FAQs, additional Instructions and other information provided by the Commission about financial crime on its website.
6. The Commission will consider the practices listed in this Note during on-site visits and will also be considering these as part of the current review and amendment of the Handbooks being undertaken by the joint Commission and industry working group.
7. Businesses are reminded of their obligations in rule 30 of the Handbook for Financial Services Businesses and rule 46 of the Handbook for Legal Professionals, Accountants and Estate Agents, on Countering Financial Crime and Terrorist Financing. This rule requires that a business ensure that the Commission is advised of any material failure to comply with the Regulations and the rules in the Handbooks or any serious breaches of the policies, procedures and controls of the business.

Please click here to view the Guidance Note.

http://bit.ly/1lNS9Bs
http://bit.ly/1i4osg5

The trends and observations identified in this Note are in addition to those matters identified in

1. the “Dear CEO” letter issued by the Commission on 27 May 2014, http://bit.ly/1mWdJl9
2. the Instruction issued to licensed fiduciary businesses on 28 May 2014. http://bit.ly/1ju4g22

The Commission will consider the practices listed in this Note during on-site visits and will also be considering these as part of the current review and amendment of the Handbooks being undertaken by the joint Commission and industry working group.

REFRENEES USED

1. References to “Board” include any equivalent body i.e. Partners or Principals of the business.
2. References to “business” include both prescribed businesses and financial services businesses, as those terms are defined in the Regulations.
3. References to “financial crime” include money laundering, terrorist financing, bribery and corruption, tax evasion and other predicate offences as listed in Chapter 1 – Section 1.1 Background and Scope – of the Handbooks.
4. References to the “Handbooks” in this Note relate to the Handbook for Financial Services Businesses on Countering Financial Crime and Terrorist Financing and the Handbook for Legal Professionals, Accountants and Estate Agents on Countering Financial Crime and Terrorist Financing.
5. References to “MLRO” includes Nominated Officers.
6. References to the “Regulations” in this Note relate to The Criminal Justice (Proceeds of Crime)(Financial Services Businesses)(Bailiwick of Guernsey) Regulations, 2007 and The Criminal Justice (Proceeds of Crime) (Legal Professionals, Accountants and Estate Agents) (Bailiwick of Guernsey) Regulations, 2008, both as amended.
7. All other terms used in this Note are as defined in either the Regulations or Handbooks, where so defined.