Amendment to Community Provisions (Wire Transfers) (Jersey) Regulations 2007 (“principal Regulations”) to complete implementation in Jersey of Financial Action Task Force SRVII on wire transfers.

Information about the publication of Ministerial Decisions

A formal published “Ministerial Decision” is required as a record of the decision of a Minister (or an Assistant Minister where they have delegated authority) as they exercise their responsibilities and powers.

Ministers are elected by the States Assembly and have legal responsibilities and powers as “corporation sole” under the States of Jersey Law 2005 by virtue of their office and in their areas of responsibility, including entering into agreements, and under any legislation conferring on them powers.

An accurate record of “Ministerial Decisions” is vital to effective governance, including:

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

Ministers are individually accountable to the States Assembly, including for the actions of the departments and agencies which discharge their responsibilities.

The Freedom of Information Law (Jersey) Law 2011 is used as a guide when determining what information is be published. While there is a presumption toward publication to support of transparency and accountability, detailed information may not be published if, for example, it would constitute a breach of data protection, or disclosure would prejudice commercial interest.

A decision made (12/11/2007) regarding: Amendment to Community Provisions (Wire Transfers) (Jersey) Regulations 2007 (“principal Regulations”) to complete implementation in Jersey of Financial Action Task Force SRVII on wire transfers.

Decision Reference: MD-TR-2007-0117
Decision Summary Title:	Community Provisions (Wire Transfers) (Amendment) (Jersey) Regulations 2007 (“amending Regulations”)		Date of Decision Summary:	12 November 2007
Decision Summary Author:	Andrew Le Brun		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:
Written Report Title:	Implementation of FATF SRVII on wire transfers		Date of Written Report:	7 November 2007
Written Report Author:	Andrew Le Brun		Written Report : Public or Exempt?	Public
Subject: Amendment to Community Provisions (Wire Transfers) (Jersey) Regulations 2007 (“principal Regulations”) to complete implementation in Jersey of Financial Action Task Force SRVII on wire transfers.
Decision(s): The Minister agreed to lodge the amending Regulations au Greffe in order to complete the Island’s implementation of FATF SRVII on wire transfers and instructed officers to make the necessary arrangements.
Reason(s) for Decision: To complete the Island’s implementation of FATF SRVII on wire transfers - by introducing oversight provisions into the principal Regulations and specifying which contraventions of the principal Regulations will constitute offences. To facilitate the continued use of BACS by individuals and businesses for making transfers between Jersey and the UK – through the introduction of oversight and offence provisions that are equivalent to the United Kingdom (“UK”).
Resource Implications: The amending Regulations are not expected to have any material impact on the financial or manpower resources of the States, given that: requirements contained in the principal Regulations will be “self-policed” – on the basis that outgoing wire transfers that do not include complete information will likely be rejected by the payment service provider of the beneficiary of the transfer; the Jersey Financial Services Commission will have responsibility for monitoring compliance with the Regulations; and regulatory sanctions will also be available for use under the Financial Services (Jersey) Law 1998 – since payment service providers must be registered with or known to the Commission. Whilst the principal Regulations provide that the omission of complete information in a transfer must be a factor in assessing whether or not another person is engaged in money laundering or terrorist financing, this is a factor that will be taken into account by a payment service provider in reporting obligations that are already established, or due to be established, under other enactments. The availability of complete information in each wire transfer is likely to assist law enforcement.
Action required: Liaison with the Greffier of the States to arrange for lodging au Greffe of the amending Regulations.
Signature:		Position: Senator Terry Le Sueur, Treasury and Resources Minister
Date Signed: 12th November 2007		Date of Decision: 12th November 2007

Amendment to Community Provisions (Wire Transfers) (Jersey) Regulations 2007 (“principal Regulations”) to complete implementation in Jersey of Financial Action Task Force SRVII on wire transfers.

Community Provisions (Wire Transfers) (Amendment) (Jersey) Regulations 200- (“amending Regulations”) -

Report on implementation of FATF Special Recommendation VII on wire transfers

The amending Regulations will complete the implementation - in Jersey - of Financial Action Task Force (“FATF”) Special Recommendation VII on wire transfers (“SR VII”), one of nine Special Recommendations issued by the FATF to provide a basic framework to detect, prevent and suppress the financing of terrorism and terrorist acts. The amending Regulations will do this by introducing oversight provisions into the Community Provisions (Wire Transfers) (Jersey) Regulations 2007 (“principal Regulations”) and specifying which contraventions of the principal Regulations will constitute offences.

The principal Regulations – which came into force on 23 July 2007 – already establish requirements for information to accompany transfers. Obligations are placed on:

the payment service provider of the customer requesting that a transfer be made;

the payment service provider of the person that is to receive the transfer; and

on any intermediate payment service providers (such as correspondent banks).

These requirements are unaffected by the amending Regulations, save for two additional references to the Order that will succeed the Money Laundering (Jersey) Order 1999, and which is expected will come into force in January 2008.

As they stand, however, the principal Regulations do not include any provision for oversight of compliance. Nor do they specify which contraventions will constitute offences. This is because, at the time that the principal Regulations were approved by the States, the approach to be followed in the United Kingdom (“UK”) in these areas had not been finalised, and has only very recently been agreed.

It is important that the Island should implement SR VII in a way that is equivalent to the European Union (“EU”) and, in particular, the UK. This is because one of the conditions for individuals and businesses in Jersey to be able to continue to use UK payment systems, in the same way that individuals and businesses in the UK do (i.e. as domestic transfers), is that Jersey implements the “same rules” on transfers that apply in the EU. Where provisions in Jersey for oversight and sanctions follow those of the UK, then it will be much easier to demonstrate that “same rules” are applied.

The UK has already made an application to the European Commission (“EC”) in respect of Jersey (and the other Crown Dependencies) to allow transfers between the UK and Jersey to be treated as domestic transfers, but it is unlikely that this application will be determined until such time as the amending Regulations are brought into force. The EC may approve the UK’s application only if it is satisfied that Jersey payment service providers are required to apply the “same rules” as those established in equivalent EU legislation.

Financial/ manpower implications

The amending Regulations are not expected to have any material impact on the financial or manpower resources of the States, given that:

requirements contained in the principal Regulations will be “self-policed” – on the basis that outgoing wire transfers that do not include complete information will likely be rejected by the payment service provider of the beneficiary of the transfer;

the Jersey Financial Services Commission will have responsibility for monitoring compliance with the Regulations; and

regulatory sanctions will also be available for use under the Financial Services (Jersey) Law 1998 – since payment service providers must be registered with or known to the Commission.

Whilst the principal Regulations provide that the omission of complete information in a transfer must be a factor in assessing whether or not another person is engaged in money laundering or terrorist financing, this is a factor that will be taken into account by a payment service provider in reporting obligations that are already established, or due to be established, under other enactments.

The availability of complete information in each wire transfer is likely to assist law enforcement.

Amendment to Community Provisions (Wire Transfers) (Jersey) Regulations 2007 (“principal Regulations”) to complete implementation in Jersey of Financial Action Task Force SRVII on wire transfers.

Information about the publication of Ministerial Decisions

A decision made (12/11/2007) regarding: Amendment to Community Provisions (Wire Transfers) (Jersey) Regulations 2007 (“principal Regulations”) to complete implementation in Jersey of Financial Action Task Force SRVII on wire transfers.