Consultation on changes to AML/CFT legislation
14th December 2009The Commission has written to the managing directors of all Financial Services Businesses today, seeking comments on the proposed changes to Schedule 1 to the Criminal Justice (Proceeds of Crime) (Bailiwick of Guernsey) Law, 1999 ("the 1999 Law"), proposed changes to Schedule 1 to the Registration of Non-Regulated Financial Services Businesses (Bailiwick of Guernsey) Law, 2008 ("the 2008 Law") and on one proposed amendment to the Criminal Justice (Proceeds of Crime) (Financial Services Businesses) (Bailiwick of Guernsey) Regulations.
A copy of the proposed amendments to Schedule 1 to the 1999 Law highlighted in red are available here
A copy of the proposed amendments to Schedule 1 to the 2008 Law highlighted in red are available here
A copy of the proposed amendments to the Regulations highlighted in red are available here
The Commission is consulting on proposed changes to the Criminal Justice (Proceeds of Crime) (Financial Services Businesses) (Bailiwick of Guernsey) Regulations, 2007 (the "Regulations") which will make one minor change to regulation 5 and amend Schedule 1 to the Criminal Justice (Proceeds of Crime) (Bailiwick of Guernsey) Law, 1999 ("the 1999 Law"). The Commission is also consulting on proposed amendments to Schedule 1 to the Registration of Non-Regulated Financial Services Businesses (Bailiwick of Guernsey) Law, 2008 ("the 2008 Law").
The Commission has also written to the managing directors/partners of prescribed businesses and firms of accountants which are not prescribed businesses seeking comments on the proposed changes to Schedule 2 to the Criminal Justice (Proceeds of Crime) (Bailiwick of Guernsey) Law, 1999.
A copy of the proposed amendments to Schedule 2 to the 1999 Law highlighted in red are available here
Further information on the proposed amendment to paragraph 23 of Schedule 1 to the Criminal Justice (Proceeds of Crime) (Bailiwick of Guernsey) Law, 1999
The proposed amendment to paragraph 23 of Schedule 1 of the Law applies only to fiduciaries carrying out by way of business two types of activity which are exempted activities in the Regulation of Fiduciaries, Administration Businesses and Company Directors, etc. (Bailiwick of Guernsey) Law, 2000.
The effect of the current exemptions in the Regulation of Fiduciaries Law is that the following do not require a fiduciary licence:
- individuals acting, by way of business, as a director of up to six companies (in addition to any directorships which are exempt for numerous other reasons such as family ownership), and
- insurance intermediaries carrying on the activity of forming and providing advice in respect of a RATS, pension scheme or trust of a life insurance policy.
The Commission does not intend to change these exemptions in the Regulation of Fiduciaries Law nor to extend the registration requirements of the Registration of Non-Regulated Financial Services Businesses (Bailiwick of Guernsey) Law, 2008. However, we do not consider it justifiable for these exempted activities to be conducted outside the AML/CFT requirements in the 2007 Regulations and the Handbook for Financial Services Businesses. In practice, many individuals holding exempt directorships already hold a personal fiduciary licence, and all insurance intermediaries eligible for the second exemption above are already licensed in that capacity, but their existing procedures are not strictly required to apply to these activities.