Draft proceeds of crime (Amendment of Schedule 2) (Jersey) regulAtions 200-
REPORT
PROPOSALS TO AMEND THE LIST OF BUSINESS ACTIVITES TO WHICH THE MONEY LAUNDERING (JERSEY) ORDER 2008 APPLIES
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These draft Regulations amend Schedule 2 of the Proceeds of Crime (Jersey) Law 2008 (“Schedule 2”), which was last revised on 19 February 2008.
The draft Regulations are necessary as a consequence of:
§ A need for greater clarity on the application of the Money Laundering (Jersey) Order 2008 (“Money Laundering Order”) to fund products. The application of the Money Laundering Order to recognized funds, unclassified funds, unregulated funds, and what are referred to as “COBO only” funds is now more clearly set out.
§ Changes made to the regulatory framework for fund products by the Collective Investment Funds (Amendment No. 4) (Jersey) Law 2008 on 4 April 2008, which introduced a requirement for unclassified funds to hold certificates.
§ The identification of some additional activities that may be considered to present a lower risk of money laundering and which may be excluded from the definition of “financial services business”. In particular, it is proposed that certain general partners and special propose vehicles should not be required to comply with obligations to prevent and detect money laundering when administered by a trust company business that is subject to such obligations.
§ The need to clearly set out the application of the Money Laundering Order to lawyers and estate agents that are involved in property transactions that are affected by share transfer.
§ The correction of some anomalies that have been highlighted since the Regulations came into force, in particular the application of the Money Laundering Order to money service business that is exempt from regulation under Article 3 of the Financial Services (Money Service Business) (Exemptions) (Jersey) Order 2007. The Regulations will make it clear that those giving change in a different currency to that tendered for items purchased are outside the scope of Schedule 2.
The Island’s framework to counter money laundering and the financing of terrorism will be subject to review by the International Monetary Fund in October 2008.
Financial and manpower implications
These draft Regulations will have no implications for the financial or manpower resources of the States.