A glowing report
07 Aug 24
There is cause for optimism on the Channel Island of Jersey following MONEYVAL’s report into its compliance with international standards for AML and CFT
Image: nick/stock.adobe.com
When international assessors announced they would be conducting a review into Jersey’s ability to combat financial crime, fears of poor results inflicting a damaging mark against the island’s reputation within the asset servicing industry could have spread.
Should Jersey have been placed on a ‘grey’, or even ‘black’, list by the Financial Action Task Force (FATF), financial institutions may have experienced a period of instability and increased oversight.
However, fears have subsided following MONEYVAL, the Council of Europe’s monitoring body’s, report that Jersey has been recognised as one of the leading jurisdictions worldwide in anti-money laundering (AML) and combating the financing of terrorism (CFT).
The Government of Jersey has welcomed the report, with Ian Gorst, Government of Jersey deputy snd minister for Financial Services, saying: “This report demonstrates Jersey’s ongoing commitment to complying with international standards. I hope that it gives the industry and investors confidence in the future of Jersey as a responsible international finance centre.”
They continue to add that following the report’s findings that the island was ‘compliant’ or ‘largely compliant’ in 39 out of 40 recommendations, the island’s reputation as a responsible and trustworthy player in the financial services industry has only been enhanced.
Gorst continues: “We can use the report as a foundation on which to build sustainable and reliable growth by using it to show that Jersey takes effective action to prevent the channelling of illegal funds, and enable honest and transparent economic growth around the world.”
A confident standing
The results of the report have emboldened institutions and companies within Jersey. The findings suggest that the island is an example for the rest of the world to follow in AML and CFT. Jersey Finance, the promotional body for Jersey’s International Finance Corporation, is keen to reiterate this sentiment.
Joe Moynihan, CEO of Jersey Finance, believes that the report “should send a powerful and positive message to investors around the world and give them confidence in Jersey’s current and future standing.”
Moynihan continues to explain that the findings “reflect in particular the substantive joined-up approach of our industry, working in tandem with the Government of Jersey, the Jersey Financial Services Commission and other agencies”.
Jersey Finance hopes that by setting an example, the rest of the world can follow. Moynihan adds: “Recognising that the long-term direction for international financial services is towards greater sophistication in tackling financial crime, we remain committed to delivering this as a jurisdiction to stay at the forefront of cross-border financial services.”
Kenny Rae, managing director for Jersey at the fund administrative business JTC, shares Moynihan’s positivity. Rae expresses that the report “once again confirms Jersey’s effectiveness in preventing financial crime” and “proves” that the region is a world leader in AML and CFT.
Can’t stop now
“Jersey has made significant strides in its legal and regulatory framework against financial crime, with a strong grasp of money laundering and terrorism financing risks,” Rory Doyle, head of financial crime policy at Fenergo explains.
Doyle highlights article 41 of the report shows that “the relevant competent authorities with access to the Beneficial Ownership (BO) register have yet to find any discrepancies.”
Yet, he argues that despite the positive signs and sentiment, the industry should err on the side of caution as the threat of financial crime continues to evolve.
He continues: “This [article 41] does however raise questions about either the efficacy of the registry or the thoroughness of the checks being performed.
“As a result, Jersey’s efforts can’t stop here; the island must continue to push for full compliance with international standards, including reinforcing the enforcement of sanctions related to AML and CFT measures, as suggested.”
Doyle argues that the island still faces challenges to maintain the high standards it has now set for itself. One of the major challenges comes in the form of a “shortage of qualified financial crime professionals needed for effective client due diligence,” particularly as an increase in compliance professionals’ workloads is anticipated.
“Jersey’s financial institutions must look to implement new training programmes, enhance due diligence measures, and leverage cutting-edge technologies like machine learning and artificial intelligence,” Doyle adds. “These steps will help mitigate the risk of Jersey falling short of the progress it has made so far in its legal and regulatory framework against financial crime.”
As if heeding the warning from Doyle, the Government of Jersey’s Ian Gorst promised that they will keep fighting money-laundering and the financing of terrorism.
Gorst stresses: “Like every other jurisdiction, Jersey will have to continue to adapt to meet changing threats. The report endorses our current national strategy and much of the work we are already doing, but we will also address the recommendations made for improving our system. We will do so in a proportionate and reasonable manner, and through proper consultation with industry.”
The task of preventing money laundering and the funding of terrorism is one that runs deep throughout the financial services industry — the current battles epitomised by the creation of AMLA, the European Union’s AML watchdog.
The scale and ever-changing nature of this challenge is not lost on Gorst, or the rest of Jersey, who is adamant the jurisdiction will not fall to complacency . He adds with determination: “The work to combat financial crime is not over, and never will be.”
Should Jersey have been placed on a ‘grey’, or even ‘black’, list by the Financial Action Task Force (FATF), financial institutions may have experienced a period of instability and increased oversight.
However, fears have subsided following MONEYVAL, the Council of Europe’s monitoring body’s, report that Jersey has been recognised as one of the leading jurisdictions worldwide in anti-money laundering (AML) and combating the financing of terrorism (CFT).
The Government of Jersey has welcomed the report, with Ian Gorst, Government of Jersey deputy snd minister for Financial Services, saying: “This report demonstrates Jersey’s ongoing commitment to complying with international standards. I hope that it gives the industry and investors confidence in the future of Jersey as a responsible international finance centre.”
They continue to add that following the report’s findings that the island was ‘compliant’ or ‘largely compliant’ in 39 out of 40 recommendations, the island’s reputation as a responsible and trustworthy player in the financial services industry has only been enhanced.
Gorst continues: “We can use the report as a foundation on which to build sustainable and reliable growth by using it to show that Jersey takes effective action to prevent the channelling of illegal funds, and enable honest and transparent economic growth around the world.”
A confident standing
The results of the report have emboldened institutions and companies within Jersey. The findings suggest that the island is an example for the rest of the world to follow in AML and CFT. Jersey Finance, the promotional body for Jersey’s International Finance Corporation, is keen to reiterate this sentiment.
Joe Moynihan, CEO of Jersey Finance, believes that the report “should send a powerful and positive message to investors around the world and give them confidence in Jersey’s current and future standing.”
Moynihan continues to explain that the findings “reflect in particular the substantive joined-up approach of our industry, working in tandem with the Government of Jersey, the Jersey Financial Services Commission and other agencies”.
Jersey Finance hopes that by setting an example, the rest of the world can follow. Moynihan adds: “Recognising that the long-term direction for international financial services is towards greater sophistication in tackling financial crime, we remain committed to delivering this as a jurisdiction to stay at the forefront of cross-border financial services.”
Kenny Rae, managing director for Jersey at the fund administrative business JTC, shares Moynihan’s positivity. Rae expresses that the report “once again confirms Jersey’s effectiveness in preventing financial crime” and “proves” that the region is a world leader in AML and CFT.
Can’t stop now
“Jersey has made significant strides in its legal and regulatory framework against financial crime, with a strong grasp of money laundering and terrorism financing risks,” Rory Doyle, head of financial crime policy at Fenergo explains.
Doyle highlights article 41 of the report shows that “the relevant competent authorities with access to the Beneficial Ownership (BO) register have yet to find any discrepancies.”
Yet, he argues that despite the positive signs and sentiment, the industry should err on the side of caution as the threat of financial crime continues to evolve.
He continues: “This [article 41] does however raise questions about either the efficacy of the registry or the thoroughness of the checks being performed.
“As a result, Jersey’s efforts can’t stop here; the island must continue to push for full compliance with international standards, including reinforcing the enforcement of sanctions related to AML and CFT measures, as suggested.”
Doyle argues that the island still faces challenges to maintain the high standards it has now set for itself. One of the major challenges comes in the form of a “shortage of qualified financial crime professionals needed for effective client due diligence,” particularly as an increase in compliance professionals’ workloads is anticipated.
“Jersey’s financial institutions must look to implement new training programmes, enhance due diligence measures, and leverage cutting-edge technologies like machine learning and artificial intelligence,” Doyle adds. “These steps will help mitigate the risk of Jersey falling short of the progress it has made so far in its legal and regulatory framework against financial crime.”
As if heeding the warning from Doyle, the Government of Jersey’s Ian Gorst promised that they will keep fighting money-laundering and the financing of terrorism.
Gorst stresses: “Like every other jurisdiction, Jersey will have to continue to adapt to meet changing threats. The report endorses our current national strategy and much of the work we are already doing, but we will also address the recommendations made for improving our system. We will do so in a proportionate and reasonable manner, and through proper consultation with industry.”
The task of preventing money laundering and the funding of terrorism is one that runs deep throughout the financial services industry — the current battles epitomised by the creation of AMLA, the European Union’s AML watchdog.
The scale and ever-changing nature of this challenge is not lost on Gorst, or the rest of Jersey, who is adamant the jurisdiction will not fall to complacency . He adds with determination: “The work to combat financial crime is not over, and never will be.”
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