As at writing (28^th June 2019), the JFSC has not issued a civil fine – however the JFSC claim to have issued a TCB  with Civil Penalty warning.

After issuing the warning, they first wanted a reporting professional to provide an independent report on the state of the TCB systems and controls.

The result of the report was a positive one, and no fine was issued however the JFSC warned the TCSP would consider a Band 2 Civil Penalty should the issues identified previously were not remediated satisfactorily

1. A Band 2 Civil Penalty

1. A contravention of a Code of Practice not falling into Band 2A or Band 3 below and not rectified to the satisfaction of the JFSC within the timeframe determined by the JFSC
2.  6% of relevant income, subject to a cap of £4,000,000.
3.  (https://www.jerseyfsc.org/media/2179/civil-financial-penalties-methodology-sept-2018.pdf)

The notice of the above is found In Example 4 (page 70) of the FATF Risk-based Approach for Trust and Company Service Providers the following is stated:-

1. The JFSC was notified of a number of regulatory breaches namely four breaches of Section 8.3.1 of the AML/CFT Handbook (8.3.1  Internal SARs), the late notification and internal reporting to the MLRO of suspicion relating to customers.
2. As a result of the late notification of the breaches, the TCB was issued with Civil Penalty warning.
3. Given the nature of the breaches, the matter was referred to Enforcement for consideration, who made the Jersey FIS aware of concerns  over failing to report and late submission of SARs.
4. In agreement with the JFSC, the TCSP appointed a reporting professional voluntarily to conduct a review of its remediation of issues and compliance function.
5. The report produced alleviated much of the JFSC’s concerns concerning the current compliance environment however there was still some remediation required.
6. The matter was passed back to Supervision for monitoring of the remediation and to test at a later stage.

The TCSP was notified that the JFSC would consider a Band 2 Civil Penalty should the issues not be remediated satisfactorily

To read the report please click here.