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Consultation on 2012 FATF Recommendations: Response

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A decision made on 24 May 2019

MINISTERIAL DECISION REFERENCE

MD-ER-2019-0031

DECISION SUMMARY TITLE

Response to Consultation on the Implementation of the 2012 FATF Recommendations

DECISION SUMMARY AUTHOR

Lead Policy Adviser, Financial Crime

IS THE DECISION SUMMARY PUBLIC OR EXEMPT?  

Public

REPORT TITLE

Response to Consultation on the Implementation of the 2012 FATF Recommendations

REPORT AUTHOR OR NAME OF PERSON GIVING REPORT

Lead Policy Adviser, Financial Crime

IS THE REPORT PUBLIC OR EXEMPT?

Public

DECISION AND REASON FOR THE DECISION

Following a consultation issued by the Jersey Financial Crime Strategy Group in July 2018 (Consultation), the Minister for External Relations approved the publication of a response paper summarising the responses to the Consultation and Government’s policy position moving forward.

RESOURCE IMPLICATIONS

There are no resource implications for the Government of Jersey.

ACTION REQUIRED

The Lead Policy Adviser, Financial Crime to arrange for publication of the Response Paper.

SIGNATURE

 

 

SENATOR IAN GORST

POSITION

 

 

MINISTER FOR EXTERNAL RELATIONS

DATE SIGNED

EFFECTIVE IMMEDIATELY

Consultation on the Implementation of the 2012 FATF Recommendations: Response

REPORT

 

Response to Consultation on the Implementation of the 2012 FATF Recommendations

 

Purpose

  1. The purpose of this Report is to outline the basis on which the Minister for External Relations (MER) should authorise the publication of a response paper (Response Paper) to the Consultation on the Implementation of the 2012 FATF Recommendations (Consultation). The Consultation and Response Paper cover miscellaneous amendments to Jersey legislation designed to close gaps with the International Standards on Combating Money Laundering and the Financing of Terrorism & Proliferation (Recommendations) of the Financial Action Task Force (FATF). The Response Paper has been prepared by the Policy and Legislative Sub Group (PLSG) under the supervision of the Financial Crime Strategy Group (Strategy Group).

Background

  1. In 2012 the FATF substantially updated its Recommendations. In response, and as part of Jersey’s preparation for the next mutual evaluation of the Island’s AML/CFT remige by MONEYVAL, the PLSG conducted a detailed gap analysis between the Recommendations and Jersey’s AML/CFT regime, looking at both legislation and measures of effectiveness.
  2. In order to address the legislative gaps identified, the Strategy Group issued the Consultation on 27 July 2018. The Consultation proposed numerous miscellaneous changes to Jersey law. We have taken forward those proposals in three law drafting projects:
    1. amendments to the Money Laundering (Jersey) Order 2008;
    2. amendments to other miscellaneous financial crime legislation; and
    3. continued development of the Register of Entities (Jersey) Law 201-, which is anticipated to come into force in Q3 2020.
  3. Time has been taken to consider the proposals in further detail and formulate coherent proposals to take forward in the above projects, hence the short delay between the Consultation closing and the issuing of the Response Paper.

 

Consultation and Response Paper

  1. The contents of the Consultation and Response Paper speak for themselves. Due to the number of matters contained therein I do not propose to summarise them here.
  2. Whilst some individual responses were not in favour of certain proposals or raised important points of detail, there were no areas within the Consultation which the responses, when taken in aggregate, suggest are particularly controversial.

Recommendation

  1. It is recommended that the MER approve the publication of the Response Paper and that the Response Paper be placed on the gov.je website.

Reason

  1. The progression of the legislative amendments captured in the Consultation and the Response Paper will help Jersey make an important step forwards in ensuring technical compliance with the FATF Standards in preparation for Jersey’s mutual evaluation by MONEYVAL, which is expected to take place in 2022.

Resource Implications

  1. There are no resource implications for the Government of Jersey as a result of this decision.

 

Report author:  Tom Fothergill, Lead Policy Adviser, Financial Crime

Date:  21 May 2019

 

 

[END]

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