Strasbourg 24.07.2024 – In a report published today, the Council of Europe’s anti-money laundering body MONEYVAL commends the UK Crown Dependency of Jersey for taking steps to strengthen its legal and regulatory framework to combat money laundering (ML), financing of terrorism (FT) and financing of proliferation (FP). It also calls on the jurisdiction to further reinforce the practical application of its frameworks for investigations and prosecutions for ML, as well as the enforcement of sanctions related to AML/CFT preventative measures. 

The Council of Europe’s anti-money laundering body conducted a comprehensive assessment of the country’s level of compliance with international standards set by the Financial Action Task Force (FATF).

MONEYVAL concludes that, having significantly strengthened its legal framework since the last mutual evaluation, Jersey has most elements of an effective AML/CFT, but still needs to improve the implementation of measures in certain areas.

On the operational side, Jersey has achieved a high level of effectiveness for its understanding of ML/TF risks and implementing adequate AML/CFT policies and strategies to mitigate them. The report commends the authorities for concluding multiple high-quality, comprehensive and detailed risk assessment products informed by a variety of sources. National co-ordination and co-operation between agencies, as well as private sector awareness of risks are also strengths of the system.

The operational independence of Jersey’s Financial Intelligence Unit (FIU) and its resources have significantly improved since the last MONEYVAL assessment. Financial intelligence is regularly used to develop evidence and trace proceeds in ML, TF and predicate offence investigations, although the trend is relatively recent and authorities are encouraged to make increased use of these resources. While ML cases are routinely investigated and proceeds of crime are pursued as a policy objective, the modest number of ML prosecutions, including those for third-party and autonomous ML, call for a more proactive approach by the competent authorities. However, MONEYVAL recognises the positive results of alternative measures put in place such as civil forfeiture mechanisms, introduction of deferred prosecution agreements and the introduction of a criminal offence of the failure to prevent ML. 

Jersey has appropriate mechanisms in place to identify, investigate and prosecute TF. The low number of investigations and the absence of prosecutions and convictions has been assessed as consistent with the jurisdiction’s low TF risk profile. Mechanisms to implement, without delay, targeted financial sanctions (TFS) on terrorism financing and proliferation financing are equally in place. Notwithstanding, the assessment detects room for improvement regarding supervision of TFS requirements and the risk-based oversight of the non-profit sector.

Steps have been undertaken to reinforce the AML/CFT supervisory framework, which concentrates on the higher-risk entities and sectors, in line with supervisors’ good understanding of risks. However, the approach to ensure compliance with AML/CFT obligations greatly relies on remedial actions, with a modest imposition of sanctions, which is not considered to be sufficiently in line with the number and types of breaches detected. Measures aimed at preventing criminals from entering the market are in place for all sectors, but the report calls for a more robust process for conducting criminality checks.

The private sector demonstrated a good level of understanding of the risks and compliance with AML/CFT obligations. However, the report makes clear that the private sector’s implementation of measures on complex structures, assessment of the risks for the application of exemptions, application of enhanced due diligence measures (EDD) to politically exposed persons (PEPs) and the detection and prompt reporting of suspicious transactions would merit further improvements.

MONEYVAL finds that Jersey authorities demonstrated a good understanding of the extent to which legal persons and arrangements can be misused for ML purposes. Jersey ensures the availability of adequate, accurate and up-to-date basic and beneficial ownership (BO) information of legal persons and arrangements through a fully populated Registry and trust and company service providers (TCSPs), as well as conducting comprehensive checks, risk assessments and vetting processes on an ongoing basis.

Jersey authorities demonstrated commendable efficiency in actively seeking and providing mutual legal assistance (MLA) and other forms of international co-operation, particularly in the later years of the assessed period. Similar conclusions were drawn regarding the process of BO information sharing. Nevertheless, authorities are encouraged to seek informal cooperation more frequently and continue to increase their outreach to foreign counterparts via MLAs.

Jersey is expected to report back to MONEYVAL under its regular follow-up reporting process in December 2026.

Report

Summary

MONEYVAL and Jersey

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The Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism (MONEYVAL) is a monitoring body of the Council of Europe entrusted with the task of assessing compliance with the principal international standards to counter money laundering, the financing of terrorism and the financing of proliferation of weapons of mass destruction, as well as the effectiveness of their implementation. MONEYVAL evaluates 33 States and territories and makes recommendations to national authorities in respect of necessary improvements to their anti-money laundering and counter terrorist financing systems and to counter proliferation financing.