International Regulatory and Supervisory Bodies
In its November 2003 report on the Bailiwick of Guernsey’s regulatory and criminal justice framework, the International Monetary Fund (“IMF”) concluded that Guernsey has ‘a high level of compliance’ with each of the international standards against which the Bailiwick was assessed - the Basel Core Principles for Effective Banking Supervision, the Insurance Core Principles of the International Association of Insurance Supervisors; the Objectives and Principles of Securities Regulation of the International Organization of Securities Commissions; and the Financial Action Task Force 40+8 Recommendations. Guernsey’s legal framework for company and trust service providers was also found by the IMF to be fully consistent with the Offshore Group of Banking Supervisors Statement of Best Practice for Company and Trust Service Providers. All of these standards have been adopted by Guernsey as the foundations on which to build its reputation as a leading finance centre.
In its January 2011 financial stability assessment program reports on the Bailiwick the IMF concluded that the regulatory, supervisory and AML/CFT frameworks are comprehensive.
Select this link to the External Evaluations section of the website to view further details (including ratings of compliance) of the assessments.
The Basel Committee on Banking Supervision
The Basel Committee on Banking Supervision is a committee of banking supervisory authorities which was established by the Central Bank Governors of the G-10 countries in 1975. The Basel Committee is responsible for issuing guidelines on standards which the international community expects from banks and bank supervisors. In 1988 the Committee introduced a capital measurement system known as the Basel Capital Accord. The Capital Accord established how supervisors should measure the amount of capital needed to support a bank’s risk and introduced the concept of a minimum risk asset ratio of 8%. A revised framework was issued in 2004. In 1997 the Basel Committee introduced Twenty-Five Core Principles of Effective Banking Supervision, followed in 1999 by the Core Principles Methodology. The Basel Committee has produced papers on a wide variety of subjects and has contributed substantially to the improving of international standards of banking supervision. A complete list of publications is available on the website for the Bank of International Settlements under Basel Committee, Publications. The website address is www.bis.org.
The Group of International Financial Centre Supervisors
Guernsey was a founding member of the Offshore Group of Banking Supervisors which was established in 1980 as a forum for supervisory cooperation between banking supervisors. The group meets twice a year, once in London and in years when the International Conference of Banking Supervisors is held, it meets at that conference’s venue; in other years it meets at a location in one of the jurisdictions represented in the group.
The International Association of Insurance Fraud Agencies
Guernsey is a member of the International Association of Insurance Fraud Agencies (“IAIFA”). The IAIFA was formed in 1986 by the directors of insurance fraud agencies from the United States of America and Canada. The IAIFA aims to coordinate efforts, training and education to prevent and combat insurance fraud worldwide more effectively. By working with regulators, law enforcement agencies and companies, the IAIFA attempts to break down jurisdictional barriers. The association is also active in encouraging other enforcement agencies to share information to the mutual benefit of all who are involved in assuring a high level of integrity throughout the insurance industry. The IAIFA website address is www.iaifa.org.
The International Association of Insurance Supervisors
- to promote cooperation among insurance regulators;
- to set international standards for insurance supervision;
- to provide training to members; and
- to coordinate work with regulators in the other financial sectors and international financial institutions.
The IAIS issues global insurance principles, standards and guidance, provides training and support on issues related to insurance supervision, and organises meetings and seminars for insurance supervisors. The IAIS updated its Twenty-Eight Insurance Core Principles and the methodology for assessing compliance with these Principles in October 2003. The IAIS website address is www.iaisweb.org.
The Group of International Insurance Centre Supervisors
- to provide mechanisms and forums whereby insurance supervisors from jurisdictions concerned with offshore insurance business may discuss areas of mutual interest and concern and formulate appropriate policies;
- to provide assistance and encouragement to appropriate non-member jurisdictions to establish regimes for the supervision of offshore insurance business at least to standards equivalent to those of the group;
- to represent the interests of the group at international insurance forums; and
- generally, to promote the proper supervision of offshore insurance business.
The GIICS website address is www.giics.org.
International Organization of Securities Commissions
- to cooperate together to promote high standards of regulation in order to maintain just, efficient and sound markets;
- to exchange information on their respective experiences in order to promote the development of domestic markets;
- to unite their efforts to establish standards and an effective surveillance of international securities transactions; and
- to provide mutual assistance to promote the integrity of the markets by a rigorous application of the standards and by effective enforcement against offences.
The IOSCO website address is www.iosco.org.
Enlarged Contact Group on the Supervision of Collective Investment Funds
The Financial Action Task Force on Money Laundering
Further information on FATF and its standards are available on its website at www.fatf-gafi.org.