In December 2013 Jersey was subject to a Progress Report by MONEYVAL, the body which monitors the Island for its compliance with International Anti-money laundering and countering the financing of terrorism obligations. In that report a number of recommendations were made by the MONEYVAL secretariat which would require amendments to the Money Laundering (Jersey) Order 2008 (the “MLO”).

In early 2014 the Financial Crime Strategy Group, who advise on the Island’s AML/CFT regime, considered those amendments and consultation occurred with the relevant industry bodies. The Strategy Group concluded that it should be recommended to the Chief Minister that three specific amendments to the Money Laundering Order are be made.

The Order therefore makes amendments to the Money Laundering Order in the following areas:

1. 1.       Simplified CDD – residence of customer.
   1. The MLO is amended so that the current prohibition on applying simplified CDD under Article 18 of the MLO to customers with a connection to “enhanced risk states” is extended to cover any customer who is resident in a country that is the subject of a FATF public statement or is covered by its on-going process.

1. 2.       Higher Risk Business.
   1. The MLO is amended so that non-resident customers, customers benefitting from private banking, customers that are personal asset holding vehicles and companies with nominee shareholders would all be subject to enhanced CDD under Article 15 of the MLO.
2. 3.       Simplified CDD – intermediaries.
   1. Article 17 of the MLO is amended so that:
   2. In relation to “pooled” accounts, all underlying third parties with significant holdings (e.g. more than 25%) at the time of customer take-on are subject to simplified CDD measures (e.g. finding out the name and date of birth of the third party).
      1. In relation to an intermediary representing a single underlying customer, the name and date of birth of that underlying customer is collected if the customer is an individual.   Basic information will also need to be collected if the customer is a legal person or arrangement.