Jersey government compels all PTCs to register for AML supervision

The move is intended to resolve confusion that arose earlier in 2023 with the enactment of Proceeds of Crime (Amendment No. 6) (Jersey) Law 2022 (the Amendment), which removed most of the existing registration exemptions from Jersey's AML regime and widened Schedule 2 of the proceeds of crime 2016 Order to include business activities not previously within scope. It became clear that greater clarity on the new requirements was needed, particularly for exemptions and transitional rules for PTCs and family offices. Some of the uncertainty related to whether legal persons should be considered to be 'acting as a business' if they acted as trustees of an express trust.

The government has now decided to amend the Order to resolve this ambiguity and to clarify that only natural persons, not legal persons, can be considered non-professional trustees under the Order. This was the Order's original intention, says the government.

An order to this effect was issued on 22 August 2023 and will come into force seven days after the date of issue. It removes any doubt about the status of corporate bodies acting as PTCs. They now cannot be considered non-professional trustees and so from 30 September 2023 come within the scope of the Amendment, if they were not already.

The changes are intended to reflect Jersey's 'continued and proactive' management of national AML risks as they evolve, at the same time as ensuring compliance with the Financial Action Task Force standards. The government notes that corporate trustees may appoint an AML service provider, which offers some mitigation to the operational impact of the new Schedule 2 obligations.

The Jersey Financial Services Commission is about to issue amended guidelines explaining the new position. In the meantime, it has asked all PTCs to regularise their position by registering with it. It has promised to 'exercise its powers reasonably and proportionately...on a case-by-case basis' and says it will 'work with industry to facilitate registration of entities in a reasonable and timely manner'.

Sources

• JFSC
• Jersey government