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Approval of the Amendment to the draft Proceeds of Crime (Supervisory Bodies) (Jersey) Law 200-

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A decision made (12/03/2008) regarding: Approval of the Amendment to the draft Proceeds of Crime (Supervisory Bodies) (Jersey) Law 200- ("the Amendment").

Decision Reference:   MD-E-2008-0047 

Decision Summary Title :

Amendments to the draft Proceeds of Crime (Supervisory Bodies) (Jersey) Law 200- (“the Draft Law”)

Date of Decision Summary:

10 March 2008

Decision Summary Author:

James Mews

Finance Industry Development Executive

Decision Summary:

Public or Exempt?

(State clauses from Code of Practice booklet)

Public

Type of Report:

Oral or Written?

Written

Person Giving

Oral Report:

 

Written Report

Title :

Amendments to the draft Proceeds of Crime (Supervisory Bodies) (Jersey) Law 200-

Date of Written Report:

10 March 2008

Written Report Author:

James Mews 

Finance Industry Development Executive

Written Report :

Public or Exempt?

(State clauses from Code of Practice booklet)

Public

Subject:    

Approval of the Amendment to the draft Proceeds of Crime (Supervisory Bodies) (Jersey) Law 200- (“the Amendment”)

Decision(s):  

The Minister approved the Amendment and the attached report and signed the declaration of compatibility with the European Convention on Human Rights and for the Financial Industry Development Executive to take such steps as are necessary to lodge them au Greffe in time to amend the existing proposed Amendment to the Law for the States to debate together on 1 April 2008.

Reason(s) for Decision: 

The Amendment corrects an anomaly in the Draft Law.  It also inserts an Order making power which was previously omitted, together with the usual provision allowing Orders to deal with consequential and incidental matters.

 
Resource Implications: 

No measurable cost or manpower implications arise for the Commission, the States or industry.

Action required: 

The Finance Industry Development Executive take such steps as are necessary to lodge the Amendment au Greffe in time for the States to debate on 1 April 2008.

Signature:  Senator P.F.C.Ozouf  
 

Position:  Minister 

Date Signed: 

Date of Decision (If different from Date Signed): 

Approval of the Amendment to the draft Proceeds of Crime (Supervisory Bodies) (Jersey) Law 200-

MINISTER FOR ECONOMIC DEVELOPMENT  

AMENDMENTS TO THE DRAFT 
PROCEEDS OF CRIME (SUPERVISORY BODIES) (JERSEY) LAW 200-  

1 THE ISSUE AND RECOMMENDATION  

  1. It is proposed to amend the Proceeds of Crimes (Supervisory Bodies) (Jersey) Law 200- (“the Draft Law”) which has been lodged and is awaiting debate on 1 April 2008.

 

  1. It is recommended that the Minister for Economic Development approves the amendment to the Draft Law (“the Amendment”) and the attached report and signs the statement of Human Rights compliance and that the Finance Industry Development Executive takes the necessary steps to lodge the Amendment au Greffe to be debated by the States on 1 April 2008.

 

  1. BACKGROUND

 

  1. One of the purposes of the Draft Law is to ensure that persons who are granted an exemption from having to register under the Financial Services (Jersey) Law 1998, but who are nonetheless required to comply with anti-money laundering/countering the financing of terrorism (“AML/CFT”) legislation, can be supervised by the Jersey Financial Services Commission for compliance with their AML/CFT obligations.

 

  1. However, anomalies have been noted in relation to how two particular exemptions under the Financial Services (Jersey) Law 1998 would be treated under the current text of the draft law. The particular exemptions are for persons carrying on money service business in certain circumstances, and a category of exempted persons known as ‘experienced personal advisors’. These exemptions work slightly differently to others under the Financial Services (Jersey) Law 1998 and, under the current text of the draft law, an anomalous situation would arise whereby persons that benefit from these exemptions would not fall within the population of persons to be supervised by the Jersey Financial Services Commission under Article 5 of the law, when they should do.

 

  1. There are no financial or manpower implications arising from the proposals.

 

  1. It is believed that the Amendment does not raise any Human Rights issues due to the subject matter and the fact that no new offences are created. 

 

  1. THE AMENDMENT TO THE LAW

 

  1. The proposed amendments to Articles 1 and 5 will rectify the anomaly mentioned above, by defining “regulated person” to include a person who is engaged in business which would be regulated business were it not for the exemption. The proposed amendment to Item 5 of the Schedule to the Law is a connected consequential change.

 

  1. This amendment to the Projet also proposes a new Article 44 so that the law contains an Order making power. This had previously been overlooked. The opportunity has also been taken to include in the new Article 44 the usual provision to enable Regulations and Orders made under a law to include transitional, consequential, incidental or supplementary provisions as may be necessary or expedient.

 

  1. RECOMMENDATION

 

  1. It is recommended that the Minister for Economic Development approves the amendment to the Draft Law and the attached report and signs the statement of Human Rights compliance and that the Finance Industry Development Executive takes the necessary steps to lodge the Amendment au Greffe to be debated by the States on 1 April 2008.

 
 

JAMES MEWS

Finance Industry Development Executive

10 March 2008 

 

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