24/04/23

JERSEY: Directors given extra time to prepare for AML registration.

As published on step.org/industry-news, Monday 24 April, 2023.

Jersey company directors are being given an additional two months to prepare for their compulsory registration under Schedule 2 of the proceeds of crime legislation.

The deadline extension to 31 August 2023 also applies to Jersey family offices that do not use a private trust company administered by a registered person. Both categories are new sectors, predominantly consisting of individuals, who are currently outside of the scope of regulation under Jersey's anti-money laundering (AML) regime.

They and many other types of business will be brought into the regime's scope by enactment of Proceeds of Crime (Amendment No.6) (Jersey) Law 2022 on 30 January 2023. The amended legislation removes almost all the existing registration exemptions and widens Schedule 2 to include business activities not previously within scope. They will be required to adopt AML policies and procedures, although in many instances a Jersey service provider can be appointed to fulfil these new obligations, says law firm Carey Olsen.

New entities must comply immediately with these obligations. Existing entities that were previously out of scope have until 30 June 2023 to comply with the new regime. Directors and family offices have until 31 August 2023. This additional transition period will give these persons a better understanding of how to meet their new obligations, said the Jersey Financial Services Commission (JFSC), which is organising a series of support events and intends to publish further guidance for private trust companies and family offices on 12 May 2023.

The JFSC has also amended the rules allowing a regulated person to appoint a third-party services provider to fulfil their Article 7 and art.8 obligations under the AML legislation. It has also updated its Anti-Money Laundering Handbook following the consultation feedback issued in March 2023. The revised Handbook will come into effect on 1 July 2023.