Amendments to the Bailiwick's Framework for Countering Money Laundering and Terrorist Financing18th September 2007
Following consultation with financial services businesses, the Criminal Justice (Proceeds of Crime) (Financial Services Businesses) (Bailiwick of Guernsey) Regulations, 2007 and the Handbook for Financial Services Businesses on Countering Financial Crime and Terrorist Financing are now complete. Copies are available here:
The proposed new Handbook and Regulations are available using the following links:
On 24 April 2007 the Commission issued consultation versions of the Handbook and the 2007 Regulations. The documents attached below are a copy of the Handbook and the 2007 Regulations identifying the changes made since the consultation versions.
The 2007 Regulations have not yet been signed by the Policy Council, and neither the Regulations nor the Handbook are currently in force. The Commission anticipates that they will come into force on 15 December 2007. The reason for issuing the Regulations and Handbook at this stage is to provide financial services businesses with an opportunity to put in place policies, procedures and controls before they have effect.
- The Criminal Justice (Proceeds of Crime) (Bailiwick of Guernsey) Regulations, 2002
- The Guidance Notes on the Prevention of Money Laundering and Countering the Financing of Terrorism
- Position Paper: Overriding Principles for a Revised Know Your Customer Framework – issued 22/02/03
- Introduced Business Statement – issued 18/12/03
- Anti-Money Laundering Standards for Existing Customers – Statement – issued 30/06/04
- Introduced Business Statement No.2 – issued 27/04/05
- Business from Sensitive Sources Notice 1 – issued 18/11/99
- Business from Sensitive Sources Notice 2 – issued 27/07/00
- Business from Sensitive Sources Notice 3 – issued 04/10/01
- Business from Sensitive Sources Notice 4 – issued 22/08/02
The importance of 15 December is that it is the date on which the Transfer of Funds (Guernsey) Ordinance, 2007, the Transfer of Funds (Alderney) Ordinance, 2007 and the Transfer of Funds (Sark) Ordinance, 2007 come into force. These three Ordinances cross-refer to the 2007 Proceeds of Crime Regulations, which therefore need to be in effect when the Ordinances come into force. The Handbook contains rules and guidance in respect of the Ordinances. Copies of the Ordinances, each of which has been approved by the relevant parliament in the Bailiwick, are also available using the above link.
Other new legislation is also required to be in place in December as part of the changes to the AML/CFT framework. The Disclosure (Bailiwick of Guernsey) Law, 2007 and the Criminal Justice (Proceeds of Crime) (Bailiwick of Guernsey) (Amendment) Law, 2007 have both been agreed by the States of Guernsey and are being considered by the Privy Council. Copies of these two items of draft legislation are available using the above link.
Finally, the Law Officers’ Chambers is proposing to amend the Terrorism and Crime (Bailiwick of Guernsey) Law, 2002 by Ordinance – the Ordinance, if it is agreed by the States later this year, is expected to come into force on 15 December without any need for it to be considered by the Privy Council. The Ordinance will be posted on the Commission’s website as soon as it is available.
The Commission is proposing to hold a number of events for industry in Guernsey, Alderney and Sark in November at which representatives of the Commission’s regulatory Divisions and other AML/CFT authorities in the Bailiwick will make presentations and answer questions on the new AML/CFT framework contained in the legislation, rules and guidance referred to in this letter. The Commission shall issue details of these events later in September.
In the meantime, please feel free to liaise with your usual contact in the regulatory Divisions or Sylvia Sirett of the Policy and International Affairs Division if you have any queries.