Non-Regulated Financial Services Business
The Criminal Justice (Proceeds of Crime) (Financial Services Businesses) (Bailiwick of Guernsey) Regulations, 2008 and compliance with the Handbook for Financial Services Businesses on Countering Financial Crime and Terrorist Financing.
Associated legislation, codes and guidance
Applicants are advised that further relevant information can be accessed from the 'Legislation and Guidance' section of our website.
Applicable financial services
Firms conducting any of the business activities listed below are required to register with the Commission.
- Lending (including, without limitation, the provision of consumer credit or mortgage credit, factoring with or without recourse, financing of commercial transactions (including forfeiting) and advancing loans against cheques);
- Financial leasing;
- Operating a money service business (including, without limitation, a business providing money or value transmission services, currency exchange (bureau de change) and cheque cashing);
- Facilitating or transmitting money or value through an informal money or value transfer system or network;
- Issuing, redeeming, managing or administering means of payment, including, without limitation, credit, charge and debit cards, cheques, travellers' cheques, money orders and bankers' drafts and electronic money;
- Providing financial guarantees or commitments;
- Trading (by way of spot, forward, swaps, futures, options, etc.) in: money market instruments (including, without limitation, cheques, bills and certificates of deposit) foreign exchange, exchange, interest rate or index instruments, and commodity futures, transferable securities or other negotiable instruments or financial assets;
- Participating in securities issues and the provision of financial services related to such issues, including, without limitation, underwriting or placement as agent (whether publicly or privately);
- Providing settlement or clearing services for financial assets including, without limitation, securities, derivative products or other negotiable instruments;
- Providing advice to undertakings on capital structure, industrial strategy or related questions, on mergers or the purchase of undertakings except where the advice is provided in the course of carrying on the business of a lawyer or accountant;
- Money broking;
- Money changing;
- Providing individual or collective portfolio management services or advice;
- Providing safe custody services;
- Providing services for the safekeeping or administration of cash or liquid securities on behalf of clients;
- Carrying on the business of a credit union;
- Accepting repayable funds other than deposits;
- Otherwise investing, administering or managing funds or money on behalf of other persons;
- Buying, selling or arranging the buying or selling of, or otherwise dealing in, bullion or buying or selling postage stamps.
Specific criteria and principles
We recommend that prior to submitting an application you review the NRFSB Decision Tree. The Decision Tree has been designed to help you determine whether you need to submit an application and what information the Commission will require in order to consider your application.
Businesses undertaking financial services business as defined in Schedule 1 to the Criminal Justice (Proceeds of Crime) (Bailiwick of Guernsey) Law, 1999 ("the Law") on an incidental or occasional basis may not be required to register with the Commission or to meet the AML/CFT regulations and rules in the handbook. To be excluded, your business must meet all of the criteria below (which appear in Paragraph 29 of Schedule 1 to the Law):
- The total turnover of that business, plus that of any other financial services business carried on by the same person, does not exceed £50,000 per annum;
- No occasional transactions are carried out in the course of such business, that is to say, any transaction involving more than £10,000, where no business relationship has been proposed or established, including such transactions carried out in a single operation or two or more operations that appear to be linked;
- The turnover of such business does not exceed 5% of the total turnover of the person carrying on such business;
- The business is ancillary, and directly related, to the main activity of the person carrying on the business;
- In the course of such business, money or value is not transmitted or such transmission is not facilitated by any means;
- The main activity of the person carrying on the business is not that of a financial services business;
- The business is provided only to customers of the main activity of the person carrying on the business and is not offered to the public;
- The business is not carried on by a person who also carries on a business falling within Paragraphs 20 to 23A of Part I of Schedule 1 to the Law.
The application pack must contain:
Application form and supporting documentation
Application form: We will only process an application once in receipt of an application form which must be fully completed, signed with wet signatures of the relevant officers, dated and submitted in hardcopy form.
Supporting documentation: Scan supporting documentation, as itemised in the application form, together with an explanatory covering letter scheduling the contents and send electronically to [email protected] .
The fee is non-refundable; Fees
Business Risk Assessment
The business risk assessment must evidence that the business has considered the financial crime risks to which it may be exposed once its business activities commence, and how it will address them. Guidance on identifying and assessing risks of how a financial services business might be involved in money laundering or terrorist financing taking into account its customers, products and services and the ways in which it provides those services is provided in section 3.3 of the Handbook for Financial Services Businesses on Countering Financial Crime and Terrorist Financing.
Be guided by the application form but where applicable these must be submitted through the Online PQ Portal.
We will assess and review the application pack and inform the applicant, or its professional advisers, of any matters requiring expansion or clarification. Once all queries have been satisfied, the application will be referred to a decision-maker. A formal response will follow decision-making.
Within 7 calendar days from receipt of the application we will advise if the submission is complete or requires further expansion and clarification. If the submission is complete we aim to confirm, grant or refuse a registration within 56 calendar days from receipt of a fully completed application pack.
The response time may be advanced or substantially delayed depending on the quality of the application pack.
We will send a written response detailing any matters that require expansion or clarification to enable the application to be referred to a decision-maker.
Successful applicants will be issued with a registration certificate.
Any conditions which may be imposed on the registration will be scheduled in a covering letter.
Upon registration, the annual fee becomes due, which is reduced pro rata in the first year: an invoice will be sent with the licence.