MONEY LAUNDERING (AMENDMENT No. 6) (JERSEY) ORDER 2013 has introduced concept of obliged person – The following outlines the new rules as simply as possible!!!

Stage 1 –

 Definitions

“Obliged person” has the meaning in Article 16(1);  

“Regulated business” means a FINANCIAL SERVICES BUSINESS in respect of which a person –

1. is registered under the Banking Business (Jersey) Law 19917;
2. holds a permit or is a certificate holder under the Collective Investment Funds (Jersey) Law 19888;
3. is registered under the Financial Services (Jersey) Law 19989; or
4. is authorized by a permit under the Insurance Business (Jersey) Law 1996;

“Regulated person” means a person carrying on a regulated business;  

“Relevant person” means –

1. a person carrying on a FINANCIAL SERVICES BUSINESS in or from within Jersey; or
2. either –
3. a Jersey body corporate, or
4. other legal person registered in Jersey, carrying on a financial services business in any part of the world;

Stage 2 –

Reliance on obliged persons – Article 1

1. Relevant person may place reliance on certain obliged persons to have applied identification measures and to keep evidence of identit
2. In order to meet relevant person’s obligations under Articles 13 and 15 to apply identification measure
3. Obliged persons must be:
1. Regulated and overseen by the Commission for AML/CFT compliance; or
2. “Equivalent business”

Reliance is subject to six conditions and testing

Conditions

1. One: obliged person consents to being relied upon
2. Two: identification measures applied by obliged person have been in the course of established business relationship or one-off transaction
3. Three: obliged person provides adequate assurance in writing that:
1. It has applied full (and specified) identification measures
2. It is required to keep, and does keep, evidence of identity
4. Four: information found out on customer by obliged person is immediately obtained by relevant person
5. Five: obliged person provides adequate assurance in writing that evidence of identity will be:
1. Kept until provided to relevant person, or is notified that no longer required
2. Provided on request and without delay
6. Six: relevant person assesses risk and makes written record of reason why it is appropriate to place reliance, having regard to:
1. ML/TF risk of placing reliance
2. Risk that evidence of identity is not provided
1. [Note – assurances may be provided through terms of business]

Stage 3

1. Application of simplified measures Article 17
1. A Relevant person need not find out identity of a third party on whose behalf a customer acts, or obtain evidence of identity, where customer is:
2. Regulated and overseen by the Commission for AML/CFT compliance (“equivalent business”)
3. Wholly-owned by such person and fulfils conditions set out in Article 17(2)
2. Application of the above concession is dependent upon the status of relevant person and its customer through 5 five specific circumstances (5 cases) AS FOLLOWS –

5 Cases (shown in articles 17 (3)(5)(6)(7)&(8))

1. Case One: relevant person’s customer carries on
1. deposit-taking,
2. insurance business,
3. funds services business,
4. investment business, or
5. holds a fund permit or certificate  (or carries on equivalent business)
   (IT MUST BE NOTED TCB IS NOT LISTED)
2.  Case Two: relevant person’s customer acts in course of, or in respect of,
1. unregulated or “COBO-only” fund (or carries on equivalent business) – where little risk of money laundering
3. Case Three: relevant person carries on
1. deposit-taking and its customer carries on trust company business (or equivalent business) – where little risk of money laundering
4. Case Four: relevant person carries on
1. deposit-taking and its customer is a lawyer carrying on business that is regulated for AML/CFT purposes – where little risk of money laundering
5. Case Five: relevant person is a
1. lawyer or accountant and its customer carries on trust company business (or equivalent business) – where little risk of money laundering

stage 4

Application of the above concession is subject to conditions (and testing for some cases)

Conditions (all cases)

1. One: relevant person assesses risk and makes written record of reason why it is appropriate to apply simplified measures, having regard to:
1. ML/TF risk of applying simplified measures
2. Customer’s business

Conditions (cases two to five only)

1. Two: customer provides adequate assurance in writing that it has applied specified identification measures
2. Three: customer provides adequate assurance in writing that:
1. Information on identity found out  will be provided on request and without delay
2. Evidence of identity obtained under identification measures will be kept and provided on request and without delay
3. [Note – assurances may be provided through terms of business]

Testing (cases two to five only):

1. Appropriate policies and procedures in place to apply necessary identification measures
2. Identity is found out
3. Information on identity found out and evidence of identity is kept
4. Information on identity found out and evidence of identity is provided without delay on request
5. Have regard to secrecy legislation

Exclusions to the above

1. Money laundering is suspected
2. Customer presents higher money laundering risk
3. Risk that customer does not apply necessary identification measures
4. Risk that customer does not keep records, or does not keep them for necessary period
5. Customer has connection to country that is subject to FATF call to apply countermeasures

Article 18 – Exclusions

1. In addition to existing restrictions, simplified identification measures can no longer be applied to a customer who has a connection to country that is subject to FATF call to apply countermeasures

http://bit.ly/S8AVCW