The Jersey Financial Services Commission (the “Commission”) has issued a Consultation Paper on proposals to amend the Money Laundering (Jersey) Order 2008. The Consultation Paper deals with a number of recommendations made by the International Monetary Fund (the “IMF”) in 2009 to strengthen the measures that are applied in Jersey by financial institutions, such as banks and trust companies, and professional firms, such as lawyers and accountants to counter money laundering and the financing of terrorism (“AML/CFT”).

AML/CFT measures covered in the Consultation Paper include:

• The application of effective policies and procedures.• Testing compliance with those policies and procedures.

• Collecting information about a customer’s identity and background, and verifying information about identity through documentary evidence and/or other data sources (together referred to as “identification measures”). Sometimes it is possible to simplify these identification measures and sometimes it is possible to rely on a third party to have collected and verified the information.

• Holding on to information and evidence of identity, and sharing it with third parties in some limited circumstances.

The Consultation Paper also proposes that, with appropriate safeguards, identification measures need be applied by a collective investment fund only when it is issuing its shares or units.

In formulating its proposals, the Commission’s objective has been to apply international standards in a way that is consistent with neighbouring territories, and the money laundering and terrorist financing risk present in Jersey. In addition to responding to specific questions posed in the Consultation Paper, respondents are invited to also consider whether the Commission has met its objective.

Action taken by the Commission to address the IMF recommendations will be reviewed later this year by MONEYVAL, a part of the Council of Europe.

To view Consultation Paper No.7 2013 please click here. – http://www.jerseyfsc.org/pdf/Consultation_Paper_No7_2013_ML_Order.pdf