FATF Moneyval issued Jersey fifth round mutual evaluation report and summary, which commended steps taken to strengthen its legal and regulatory AML/CFT/PF framework, and was approved during the 67th plenary meeting on May 21-24, 2024.
Summary
Needs greater application of AML/CFT frameworks for investigations and prosecutions, and enforcing sanctions; strong legal framework but needs improved implementation.
Has a high understanding of risks, adequate policies and strategies; has concluded multiple high-quality, risk assessments, agencies, and private sector cooperate.
JER FIU operational independence & resources are significantly improved, intelligence is now regularly used to develop evidence, trace proceeds and predicate investigations.
Money laundering cases are routinely investigated and proceeds pursued: modest number of prosecutions, but with positive results from alternative measures.
Has mechanisms to identify, investigate, prosecute terrorist financing, and to implement financial sanctions on terrorism financing and proliferation financing.
Supervision and risk-based oversight of non-profit sector could be improved.
Is reinforcing AML/CFT supervisory framework for higher-risk entities and sectors, but compliance relies on remedial action, with insufficient imposition of sanctions.
Has measures to prevent criminals from entering all sectors, but needs robust checks.
Private sector understands risks/obligations, but measures (enhanced due diligence, politically exposed persons, reporting suspicious transactions), requires improvement.
Good understanding of extent to which legal persons/arrangements can be misused.
Basic and beneficial ownership information of legal persons and arrangements is available via its registry, with regular checks, risk assessments and vetting conducted.
Actively seeks and provides mutual legal assistance and international co-operation, but should seek informal cooperation more frequently, and continue to increase outreach.
Next Steps
Jersey is expected to report under regular follow-up process, in Dec. 2026.
Jersey Response
On Jul. 24, 2024, JER States said results demonstrated its commitment to compliance, and hoped for industry/investor confidence in Jersey as an international finance center.
On the same day, JER FIN said the report endorsed Jersey’s capabilities in combatting financial crime and reflected its commitment to upholding the very highest standards.
Jul. 2024 JER JFSC Response
On Jul. 24, 2024, JER JFSC welcomed strong MONEYVAL outcome and JER States strategic review, confirms JER JFSC has all key structures, powers, activities in place.
Document dated Jul. 24, 2024, received from JER JFSC Aug. 19, summarized Aug. 20.
Assessors recognized strengths of beneficial ownership regime, among other things.
Regulators
FATF Moneyval; JER FIN; JER FIU; JER JFSC; JER States
