Last month The Process of Crime (Amendment No. 7) (Jersey) Law 2022 came into force. The amendment states that a Financial Services Business (FSB) commits an offence and is liable to a fine if a person engaged in money laundering or financing terrorism when acting in the capacity of a person associated with that business. Any ‘relevant person’ to the offence is also guilty and liable for the same manner as the FSB.
In short, under Amendment No. 7, once money laundering or financing terrorism by a customer has been established, the burden of proof lies with the FSB prove that it had in place sufficient policies, procedures, systems, and controls to monitor ongoing customer activities. This clearly increases the personal risks for Directors, Compliances Officers and Money Laundering Reporting Officers.
If you are a Jersey FSBs, you will be relieved to know that the proposed amendment provides a “reasonable steps” defence that can be tailored to its business and risk requirements. The new legislation stipulates that a business will not face prosecution if it can prove that it “adequately maintained and applied prevention procedures in relation to the activities”.
Danos Consulting is ready to support your firm, whether it is providing resources for project and remediation work, or undertaking assessment of firms’ Compliance and Financial Crime arrangements . Please contact Gurjit Purewal who will be very happy to advise on the right solutions to ensure you are meeting your regulatory responsibilities.
Gurjit Purewal | Danos Consulting
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