Today, the Jersey Financial Services Commission (the “Commission”) has issued a Consultation Paper on proposals to amend some specific provisions in the Money Laundering (Jersey) Order 2008 (the “Money Laundering Order”) and AML/CFT Handbook for regulated financial services business (the “AML/CFT Handbook”) that deal with customer due diligence measures.
The Paper has been published ahead of a wider review of the basis for, and scope of, customer due diligence concessions in the Money Laundering Order that will take account of the imminent revision to international standards set by the Financial Action Task Force.
Amongst other things, proposals in the Paper will:
- Clarify the additional customer due diligence measures that must be taken when a relationship with a customer is established remotely - where the customer is not seen - and money laundering and terrorist financing risk is considered to be higher than the norm.
- Provide additional guidance on identifying countries which may be considered to present a higher risk of money laundering or terrorist financing.
- Specify some additional due diligence measures to be applied where a customer has a connection to Iran or North Korea, and where a customer is considered to present a higher risk as a result of a connection to Bolivia, Burma (Myanmar) Cuba, Ethiopia, Kenya, Nigeria, São Tomé & Príncipe, Sri Lanka, Syria and Turkey.
- Extend the circumstances in which it may be appropriate to simplify customer due diligence measures because the risk of money laundering or terrorist financing occurring is considered to be less for a particular customer, product or service.
1 comment:
A very timely and important discussion on the consultation on changes to customer due diligence. As regulatory frameworks tighten, businesses must be proactive in adapting their compliance strategies. Enhanced customer due diligence requirements will demand even more robust verification processes and risk assessments. This is where expert due diligence services play a crucial role—helping organizations stay compliant, mitigate risk, and maintain trust with clients. It’s great to see consultations that promote transparency and give stakeholders a voice in shaping practical, effective regulations.
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