Money laundering fines increase agreed by Guernsey States – Guernsey was rated as partially compliant in the area of sanctions by MoneyVal
The maximum penalty for money laundering and terrorism financing in Guernsey has risen to £4m.
The fines can be levied for failing to carry out necessary checks or reviews or failing to make the disclosures necessary under island law.
The fines apply to licensees, with licences held by either companies or individuals.
The States agreement to raise the fines follows criticism of its sanctions in a MoneyVal report.
The committee conducts assessments of member states of the Council of Europe. Its report on Guernsey – released earlier this month – also found the number of prosecutions and convictions for money laundering in the last four years remained “disproportionately low”.
Fines of more than £300,000 will be limited to a maximum of 10% of turnover.
Maximum fines for personal fiduciary licensees and individuals representing licensees have been capped at £400,000.
The fines are issued by the Guernsey Financial Services Commission.
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