GFSC Announces Consultation On Changes To Anti-Money Laundering Regulations

by Robin Pilgrim, LawAndTax-News.com, London

21 July 2003

The Guernsey Financial Services Commission (GFSC) announced last week that proposed amendments to the Criminal Justice (Proceeds of Crime) (Bailiwick of Guernsey) Regulations, and to the Guidance Notes on the Prevention of Money Laundering and Countering the Financing of Terrorism are now available for consultation in both electronic and hard copy formats.

The proposed changes will require financial services businesses to:

- have wire transfer procedures (Regulation 5) as prescribed in the Guidance Notes;

- ensure that internal reports are made in writing to the Reporting Officer and that these reports are retained;

- pay special attention to all complex, unusual large transactions or unusual patterns of transactions, and to transactions with persons that do not have adequate systems in place to prevent or deter money laundering or terrorist financing;

- ensure that staff (and not just key staff) receive suitable training which should also include training in new developments, trends and techniques of money laundering and the financing of terrorism;

- ensure staff are suitable, adequately trained and properly supervised;

- ensure that, where there are foreign branches and subsidiaries of a financial services business whose parent entity is based in the Bailiwick of Guernsey, the provisions of Regulation 10 are followed; and

- maintain compliance and audit arrangements in accordance with Regulation 11.

According to the GFSC, the majority of the changes are designed to bring the jurisdiction into compliance with standards set by the Financial Action Task Force and the International Monetary Fund, following the latter's recent assessment of the Island.

Comments on the proposed amendments should be submitted in writing to the Policy and International Affairs Division of the Financial Services Commission no later than August 13.

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