On Feb. 13, GUE GFSC consulted on financial crime return rules 2023.
GUE GFSC proposed rules for mandatory filing of 3 existing financial crime returns to which administrative financial penalties apply for late filings, inaccurate submissions.
Proposed Rules
GUE GFSC proposed rules to make mandatory the filing of the following returns.
Annual financial crime risk return from all licensed firms by Oct. 31 each year.
Annual intermediary multi-scheme return from administrators of authorized and registered collective investment schemes, with the deadline of May 31 each year.
And the quarterly financial flows return from banks within two months of quarter end.
So penalty can be applied for late filing, proposed to add these to schedule of returns in Financial services commission (administrative financial penalties) (Bailiwick of Guernsey) regulations, per Financial services business (enforcement powers) law, s 40.
Returns will also be included in the inaccurate filing penalty regime, in effect in 2023.
GUE GFSC consulted on the inclusion of these financial crime returns in both penalty regimes as part of its consultation last year on the fee rates for 2023 (see #143907).
Effectiveness
The deadline for comments on the proposed rules is Mar. 27, 2023.
May 2023 Final Rules
On May 19, 2023, GUE GFSC issued Financial crime returns rules (StIn 29/2023) and feedback on the consultation; made on Apr. 28, 2023 and in operation on same date.
The Financial crime returns rules make mandatory the filing of annual financial crime risk return, the annual intermediaries return, and the quarterly financial flows return.
Phased approach to the introduction of a fining penalty for late or inaccurate submission of these returns; their accuracy and timely submission will be monitored but not subject to an administrative penalty for late or inaccurate filing this year.
Respondents identified two areas affecting the fiduciary and insurance sectors where the identity of the licensee who was required to submit the return was unclear.
Considering these comments, GUE GFSC amended the rules to make this clearer.
Respondents commented on the challenge of providing accurate info in the risk return.
Also queried the circumstances where consolidated risk returns should be submitted.
Being considered as part of next update to guidance on completing this year’s return.
Oct. 2023 Reminder
On Oct. 18, 2023, GUE GFSC reminded financial services businesses and prescribed businesses that the financial crime risk return is due for submission by Oct. 31, 2023.
Firms which are required to complete the FCRR will find it available via the portal.
Guidance should be read prior to submission and there is also a template showing all questions within the FCRR available to assist with completion and support FAQs.
In May 2024, GUE GFSC issued Intermediary Return reminder for 2024, see #213982.
Oct. 2024 Reminder
On Oct. 7, 2024, GUE GFSC reminded all financial services businesses and prescribed businesses 2024 the Financial Crime Risk Return (the FCRR) is due by Oct. 31, 2024.
For financial services businesses, FCRR is subject to late and inaccurate filing penalties.
