Money
Laundering (Amendment No. 12) (Jersey)
Order 2023
Made 27th July 2023
Coming into
force 1st September 2023
1 Money Laundering (Jersey)
Order 2008 amended
This Order amends the Money
Laundering (Jersey) Order 2008.
2 Article 1 (interpretation) amended
In Article 1(1) –
(a) in the definition “FATF
recommendations”, for “up to the date of the making of this Order” there is
substituted “or replaced from time to time”;
(b) in the definition of
“relevant person”, for “otherwise than by way of business” there is substituted
“otherwise than as a business”.
3 Article 3 (meaning of “customer due
diligence measures”) amended
In Article 3, after
paragraph (4) there is inserted –
“(4A) For the purposes of paragraph (4)(b), a
digital identification system that complies with the FATF Guidance on Digital
Identity published on 6th March 2020 as amended or replaced from time to time constitutes
a reliable and independent source.”.
4 Article 4 (meaning of “one-off
transaction”) amended
In Article 4 –
(a) in paragraph (1)(a),
(b), (c) and (d), for “a money service business” in each place there is
substituted “money or value transfer services”.
(b) for paragraph (2)(b),
there is substituted –
“(b) “money or value transfer
services” has the same meaning as in paragraph 5 of Schedule 2 to the
Law;”.
5 Article 11 (policies, procedures and
training to prevent and detect money laundering) amended
In Article 11, in
paragraph (3)(c), after clause (vi) there is inserted –
“(vii) a beneficial owner or
controller of a beneficiary under a life insurance policy,”.
6 Article 11A (additional requirements
for financial groups) amended
In Article 11A –
(a) at the end of the heading
there is inserted “and DNFBP groups”;
(b) after paragraph (3)
there is inserted –
“(4) For
the purposes of this Article, “financial group” includes a group of persons
falling within Part 3 of Schedule 2 to the Law (designated non-financial
businesses and professions) if there is, in relation to the group, a parent
company or other legal person that exercises control over every member of the
group.”.
7 Article 13 (application and timing of
customer due diligence measures) amended
In Article 13(11),
after “15B” there is inserted “(if applicable)”.
8 Article 15A (enhanced customer due
diligence measures in relation to politically exposed persons) amended
In Article 15A –
(a) after paragraph (2)
there is inserted –
“(2A) A relevant person may treat a domestic
politically exposed person as not being a politically exposed person 2 years
after the person ceases to be entrusted with a prominent public function if the
relevant person is satisfied –
(a) that, following a risk
assessment, the person does not present a higher risk of money laundering; and
(b) that there is no reason
to continue to treat the person as a politically exposed person.
(2B) A relevant person may treat a foreign
politically exposed person as not being a politically exposed person 5 years
after the person ceases to be entrusted with a prominent public function if the
relevant person is satisfied –
(a) that, following a risk
assessment, the person does not present a higher risk of money laundering; and
(b) that there is no reason
to continue to treat the person as a politically exposed person.
(2C) A relevant person may treat a prominent
person as not being a politically exposed person 5 years after the person
ceases to be entrusted with a prominent public function by an international
organisation if the relevant person is satisfied –
(a) that, following a risk
assessment, the person does not present a higher risk of money laundering; and
(b) that there is no reason
to continue to treat the person as a politically exposed person.
(2D) Paragraphs (2A)
to (2C) apply to immediate family members or close
associates of the politically exposed person in question as they do to that
person.”;
(b) in paragraph (3) –
(i) in the definition “prominent person”, at
the end there is inserted “, and includes an immediate family member or a close
associate of the person”, and
(ii) after
that definition there is inserted –
“ “prominent public function”,
in relation to an international organisation, means a member of the senior
management, including a director, deputy director, board member or other
equivalent function;”.
9 Article 15B (enhanced customer due
diligence measures in relation to banking relationships outside Jersey) amended
(1) This
Article amends Article 15B.
(2) In
the heading, for “banking relationships outside Jersey” there is substituted
“cross-border correspondent banking and other similar relationships”.
(3) For
paragraph (1) there is substituted –
“(1) This
Article applies to a Jersey financial institution or Jersey VASP
(virtual asset service provider) which has or proposes to have a correspondent
banking or similar relationship with a foreign financial institution or foreign
VASP.”.
(4) In
paragraph (2) –
(a) in the opening words, for
“A relevant person to whom this Article applies” there is substituted “A Jersey
financial institution or Jersey VASP”;
(b) in sub-paragraph (a),
for “the institution” there is substituted “the foreign financial institution
or foreign VASP”;
(c) in sub-paragraph (b),
for “the institution” there is substituted “the foreign financial institution
or foreign VASP”;
(d) in sub-paragraph (c),
for “the institution’s systems and controls” there is substituted “the systems
and controls of the foreign financial institution or foreign VASP”;
(e) in sub-paragraph (d),
for “the relevant person” there is substituted “the Jersey financial
institution or Jersey VASP”;
(f) in sub-paragraph (e),
for “both the relevant person and the institution” there is substituted “all
parties”;
(g) in sub-paragraph (f) –
(i) for “the institution”,
in both places it occurs, there is substituted “the foreign financial
institution or foreign VASP”;
(ii) for “the relevant
person”, in both places it occurs, there is substituted “the Jersey financial
institution or Jersey VASP”.
(5) After
paragraph (2) there is inserted –
“foreign financial institution”
means a person who carries on financial business falling within Part 2
(financial institutions) of Schedule 2 to the Law outside Jersey and is
not a Jersey financial institution;
“foreign VASP”
means a person who carries on financial business falling within Part 4
(virtual asset service provider) of Schedule 2 to the Law outside Jersey
and is not a Jersey financial institution;
“Jersey financial institution”
means –
(a) a person who carries on
financial services business falling within Part 2 (financial institutions)
of Schedule 2 to the Law in or from within Jersey; or
(b) a person that is
incorporated or constituted under the law of Jersey and carries on such
financial services business in any part of the world;
“Jersey VASP”
means –
(a) a person who carries on
financial services business falling within Part 4 (virtual asset service
provider) of Schedule 2 to the Law in or from within Jersey; or
(b) a person that is
incorporated or constituted under the law of Jersey and carries on such
financial services business in any part of the world.”.
10 Article 17A (circumstances in which
exemptions under Part 3A do not apply) amended
(1) In
Article 17A(1), the words “third party” are
deleted.
(2) Article 17A(2) is deleted.
11 Article 23A (shell banks) amended
(1) This
Article amends Article 23A.
(2) For
paragraphs (1) and (2) there is substituted –
“(1) A
Jersey financial institution or Jersey VASP must not
enter into or continue a correspondent banking relationship with a shell bank.
(2) A
Jersey financial institution or Jersey VASP must take
appropriate measures to ensure that it does not enter into, or continue, a
correspondent banking relationship with a financial institution or VASP that is known to permit its accounts to be used by a
shell bank.”.
(3) Paragraph (3)
is deleted.
(4) In
paragraph (4) –
(a) for “For the purposes of
paragraphs (1) and (2) –”, there is substituted “In this Article –”;
(b) after sub-paragraph (a)
there is inserted –
“(aa) “financial institution” includes
a Jersey financial institution and a foreign financial institution;
(ab) “foreign financial
institution” and “foreign VASP” have the meanings
given in Article 15B;
(ac) “Jersey financial
institution” and “Jersey VASP” have the meanings
given in Article 15B;”;
(c) after paragraph (b)
there is inserted –
“(c) “VASP”
includes a Jersey VASP and a foreign VASP.”.
12 Citation and commencement
This Order may be cited as the Money Laundering (Amendment
No. 12) (Jersey) Order 2023 and comes into force on 1st September 2023.
Deputy M.E. Millar of St. John,
St. Lawrence and Trinity
for and on behalf of
Chief Minister