Proceeds of Crime
(Financial Intelligence) (Jersey) Regulations 2015
Part 1[1]
Interpretation
1 Interpretation[2]
In these Regulations –
“financial crime”
means –
(a) money
laundering;
(b) the
financing of terrorism; and
(c) offences
related to money laundering or the financing of terrorism;
“FIU” means the body designated under Regulation 2
as the financial intelligence unit;
“Jersey competent authority”
means any person (other than the FIU) that –
(a) exercises
functions of a public nature in Jersey; and
(b) is
concerned with the prevention, investigation, detection or prosecution of
financial crime;
“overseas competent authority”
means an authority outside Jersey that has equivalent functions to those of a
Jersey competent authority;
“principal Law” means the Proceeds of Crime (Jersey) Law 1999;
“relevant person” means –
(a) a
person carrying on a financial services business in or from within Jersey; or
(b) either –
(i) a Jersey body
corporate, or
(ii) other
legal person registered in Jersey,
carrying on a financial services business in any part of the world;
“suspicious activity report” has the same meaning as
given by Regulation 1(1) of the Proceeds of Crime and
Terrorism (Tipping Off – Exceptions) (Jersey) Regulations 2014;
“terrorism” has
the meaning given in Article 2 of the Terrorism (Jersey) Law 2002.
Part 2[3]
financial
intelligence unit
2 Designation
of the FIU[4]
(1) The
Jersey Financial Intelligence Unit is designated as the financial intelligence
unit (“FIU”) in Jersey.
(2) The FIU must be operationally independent and autonomous in
the exercise of its functions.
(3) The
FIU must have the authority and capacity to exercise its functions freely,
including the ability to take autonomous decisions to analyse, gather and
disseminate specific information independently of a Jersey competent authority,
a financial intelligence unit outside Jersey or an overseas competent
authority.
(4) An
employee or member of the FIU must not be directed or supervised in the
discharge of their duties as an employee or member by the Chief Executive
Officer, the States Employment Board, a Minister or a person acting on behalf
of the Officer, Board or Minister.
2A Functions of the FIU[5]
(1) The
functions of the FIU are to –
(a) receive,
gather, store, analyse and disseminate information about financial crime
(whether in Jersey or elsewhere);
(b) receive
suspicious activity reports and other disclosures of
information about financial crime; and
(c) assist
with the prevention and detection of financial crime.
(2) The
analysis function consists primarily of –
(a) an
operational analysis which –
(i) focuses on individual
cases and specific targets, or on particular information, and
(ii) seeks
to identify links between those cases and targets and possible financial crime;
and
(b) a
strategic analysis addressing financial crime trends and patterns.
(3) For
the purpose of exercising its functions, the FIU may make arrangements, or
enter into agreements, with –
(a) a
Jersey competent authority;
(b) a
financial intelligence unit outside Jersey;
(c) an
overseas competent authority; or
(d) any
other person that the FIU considers appropriate.
2B Protection of information[6]
(1) The
FIU must have rules in place governing the security and confidentiality of
information, including procedures for access to, and the handling, storage,
dissemination and protection of, information.
(2) The
FIU must ensure that its facilities, information and information technology systems
are not able to be accessed by any person who is not authorised to do so.
2C Appointment and functions of the
Director of the FIU[7]
(1) The
Minister must appoint the Director of the FIU.
(2) The
Minister may vary or terminate an appointment, but without prejudice to
anything done pursuant to the appointment or to the making of a new
appointment.
(3) Before
making or terminating an appointment under this paragraph, the Minister must
consult the FIU governance board.
(4) Schedule 1
sets out the functions of the Director of the FIU.
(5) The Director of the FIU must exercise the functions set out
in Schedule 1 independently and autonomously.
2D FIU governance board: establishment and
membership[8]
(1) There
is established an FIU governance board.
(2) The
members of the FIU governance board are appointed by the Minister.
(3) The
Minister must appoint to the FIU governance board –
(a) at
least one representative from a Jersey competent authority; and
(b) at
least one representative from a government department.
(4) The
FIU governance board must have an odd number of members not less than 5.
2E FIU governance board: functions[9]
The FIU governance board is
responsible for –
(a) determining
the general policy and principles by reference to which the FIU is to exercise
its functions;
(b) setting
the strategic direction of the FIU;
(c) supervising
and keeping under review the FIU’s performance of its functions;
(d) considering
the annual budget submitted by the Director of the FIU and recommending the
FIU’s annual resourcing requirements to the Minister;
(e) keeping
under review whether the FIU, in exercising its functions, is using its resources
in an efficient and economic manner; and
(f) preparing
and providing reports on the FIU’s performance to the Minister.
Part 3[10]
gathering
financial information
3 Gathering
financial information
(1) This Regulation applies
where –
(a) the
FIU receives a report (including, but not limited to, a disclosure or
suspicious activity report in accordance with a provision of the principal Law,
the Terrorism (Jersey)
Law 2002, or any enactment made under those Laws) from a person listed
in paragraph (2) (a “reporter”); and
(b) the FIU
reasonably considers that, for the proper fulfilment of any of its functions,
it is necessary or expedient to seek additional information from any relevant
person (“T”) who is not the reporter but who –
(i) is mentioned in
or otherwise identifiable from the report, or
(ii) to
the reasonable knowledge or belief of the FIU, holds information that is
relevant to analysis of the report.
(2) The persons mentioned
in paragraph (1)(a) are –
(a) a
relevant person;
(b) the
Commission;
(c) a
financial intelligence unit outside Jersey,
(d) the
Comptroller of Revenue within the meaning of Article 2 of the Revenue Administration (Jersey) Law 2019 or any officer appointed
under Article 3 of that Law;
(e) a
police officer; and
(f) an
administrative or law enforcement agency (other than the States of Jersey
Police Force) concerned with the prevention, investigation, detection or
prosecution of financial crime.[11]
(3) Where this Regulation
applies the FIU may make a request to T, in accordance with the criteria in
Regulation 4, for the provision of additional information.
(4) Upon receipt of a request
duly made, T must provide the additional information in such form and by such
date or within such reasonable period as the FIU may require.
4 Criteria
for making request
(1) A request is duly made
for the purposes of Regulation 3 if –
(a) it is
made reasonably;
(b) it
relates to information falling within a category described in paragraph (2);
(c) it
specifies the nature of the information sought;
(d) it
specifies a reasonable date by which, or period within which, the information
must be provided; and
(e) it is
made in writing.
(2) The categories of
information which may lawfully be sought are –
(a) information
which may be obtained as a result of the application of customer due diligence
measures, as defined in Article 3 of the Money Laundering (Jersey) Order 2008, by a relevant person;
(b) information
in relation to which record-keeping requirements under Part 4 of the Money Laundering (Jersey) Order 2008, or reporting and disclosure
requirements under Part 5 of that Order, are imposed on a relevant person;
(c) any
other information which is necessary to determine whether a person is a holder
or beneficial owner of one or more accounts of whatever nature;
(d) the
particulars of specified accounts, or of operations which have been carried out
during a specified period.
5 Offence
and penalty etc.
(1) A person failing to
comply with the obligation imposed by Regulation 3(4) is guilty of an
offence.
(2) It is a defence for a
person who is charged with an offence under sub-paragraph (1) to
prove –
(a) that
the information requested was not within the person’s possession; or
(b) that
it was not reasonably practicable for the person to comply with the request.
(3) A person guilty of an
offence under sub-paragraph (1) shall be liable to a fine or if the person
is a natural person, to imprisonment for a term not exceeding 2 years or a
fine or to both.
(4) Where an offence
committed by an entity listed in paragraph (5) is proved to have been
committed with the consent or connivance of any person specified in the case of
that entity in paragraph (6), the person shall also be guilty of the
offence and liable in the same manner as the entity to the penalty provided for
that offence.
(5) The entities mentioned
in paragraph (4) are –
(a) a
limited liability partnership;
(b) a
separate limited partnership;
(c) an
incorporated limited partnership or other body corporate.
(6) The persons to whom liability
for an offence may attach in accordance with paragraph (4)
are –
(a) in
the case of a limited liability partnership, a person who is a partner of the
partnership;
(b) in
the case of a separate limited partnership or an incorporated limited partnership –
(i) a general
partner, or
(ii) a
limited partner who is participating in the management of the partnership;
(c) in
the case of a body corporate other than an incorporated limited partnership, a
director, manager, secretary or other similar officer of the body corporate; or
(d) any
person purporting to act in any capacity described in sub-paragraphs (a)
to (c).
(7) Where the affairs of a
body corporate are managed by its members, paragraphs (4) to (6) shall
apply in relation to acts and defaults of a member in connection with the
member’s functions of management as if the member were a director of the
body corporate.
(8) Information provided by
T under these Regulations shall not be admissible in evidence in criminal
proceedings against T or any of T’s employees, except in proceedings in
relation to an offence under this Regulation.
Part 4[12]
closing
6 Citation
These Regulations may be cited as the Proceeds of Crime (Financial
Intelligence) (Jersey) Regulations 2015.
Schedule[13]
(Regulation 2C)
Director of the FIU
1 General
functions
(1) The Director of the FIU
is responsible for ensuring that the FIU exercises its functions –
(a) effectively;
(b) in a
way that takes account of, and is proportionate to, the risks to Jersey from
financial crime; and
(c) in
accordance with the International Standards on Combating Money Laundering and
the Financing of Terrorism and Proliferation as published from time to time by
the international body known as the Financial Action Task Force and the
principles and guidance issued by the Egmont Group of Financial Intelligence
Units.
(2) The Director of the FIU
must ensure that the employees and members of the FIU –
(a) maintain
high professional standards, including standards concerning confidentiality;
(b) are
of high integrity and appropriately skilled and trained; and
(c) have
the appropriate security clearance levels for handling and disseminating
sensitive and confidential information.
2 Annual
reporting
The Director of the FIU must provide annually to the FIU governance
board –
(a) a
report on the activities and effectiveness of the FIU in the preceding year and
on any other matters relevant to the exercise of the functions of the FIU that
the Director of the FIU considers appropriate; and
(b) a
financial statement setting out details of the expenditure of the FIU in the
preceding year.
3 Annual
budget
(1) The Director of the FIU
must –
(a) prepare
an annual budget for the FIU; and
(b) submit
the annual budget to the FIU governance board in the year preceding that to
which the budget relates.
(2) The annual budget does
not preclude the Director of the FIU from making a request to the FIU
governance board or an appropriate third party for resources in addition to
those in the budget if the Director of the FIU considers it necessary.
4 Ringfencing
(1) The Director of the FIU
may not be required to do anything in the course of employment in that role
that would fall outside the functions set out in this Schedule.
(2) The financial,
technical, human and other resources of the FIU may not be used, deployed or
otherwise drawn upon by a person outside the FIU.
(3) However, this does not
prevent the Director of the FIU, or an employee or member of the FIU with the
consent of the Director of the FIU, from working with, or being seconded to, another
domestic authority or international organisation.
5 Delegation
of functions
(1) The Director of the FIU
may arrange for any of the functions set out in this Schedule to be exercised
by an employee or member of the FIU on behalf of the Director of the FIU.
(2) A function exercised by
an employee or member under this paragraph is for all purposes exercised by the
Director of the FIU and every decision taken or other thing done by an employee
or member under this paragraph has the same effect as if taken or done by the Director
of the FIU.