Draft Proceeds of Crime (Amendment of Schedule 2) (Jersey) Regulations 200-

Information about the publication of Ministerial Decisions

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demonstrating that good governance, and clear lines of accountability and authority, are in place around decisions-making – including the reasons and basis on which a decision is made, and the action required to implement a decision
providing a record of decisions and actions that will be available for examination by States Members, and Panels and Committees of the States Assembly; the public, organisations, and the media; and as a historical record and point of reference for the conduct of public affairs

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A decision made (25.07.08) to agree to lodge the draft Proceeds of Crime (Amendment of Schedule 2) (Jersey) Regulations 200-

Decision Reference: MD-TR-2008-0083
Decision Summary Title:	Draft Proceeds of Crime (Amendment of Schedule 2) (Jersey) Regulations 200-		Date of Decision Summary:	25 July 2008
Decision Summary Author:	Andrew Le Brun Director, International & Policy, Jersey Financial Services Commission		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	N/A
Written Report Title:	Proposals to amend the list of business activities to which the Money Laundering (Jersey) Order 2008 applies		Date of Written Report:	23 July 2008
Written Report Author:	Andrew Le Brun Director, International & Policy, Jersey Financial Services Commission		Written Report : Public or Exempt?	Public
Subject: Amendments to Schedule 2 of the Proceeds of Crime (Jersey) Law 1999 (“Schedule 2”)
Decision(s): The Minister agreed to lodge the Draft Proceeds of Crime (Amendment of Schedule 2) (Jersey) Regulations 200- and instructed officers to make the necessary arrangements for the Regulations to be lodged au Greffe at the earliest opportunity with a request for debate on 8 September 2008.
Reason(s) for Decision: § To provide greater clarity on application of the Money Laundering (Jersey) Order 2008 (“Money Laundering Order”) to fund products. § To address recent changes made to the regulatory framework for fund products. § To recognise some additional activities that present a lower risk of money laundering and which may be excluded from Schedule 2. § To clearly set out the application of the Money Laundering Order to property transactions affected by share transfer. § To correct some anomalies in Schedule 2.
Resource Implications: None.
Action required: Attached proposition and report to be sent to the Publications Editor of the Greffe by Business Manager and request that it be lodged at the earliest opportunity with a request for debate on 8 September 2008
Signature:		Position: Senator T A Le Sueur, Minister for Treasury and Resources
Date Signed: 25th July		Date of Decision: 25th July

Draft Proceeds of Crime (Amendment of Schedule 2) (Jersey) Regulations 200-

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.