Guernsey Provides Detail On Cash Control Law

by Carla Johnson, Investors Offshore.com, London

09 April 2008

The Guernsey authorities have this week provided further detail on the Cash Controls (Bailiwick of Guernsey) Law 2007, which officially came into force on February 18th, 2008.

The Law was introduced as a result of Financial Action Task Force (FATF) recommendations to combat money laundering, in addition to recommendations in this area by the International Monetary Fund (IMF).

The Law introduces the requirement for persons travelling into and out of the Bailiwick of Guernsey to declare cash amounts of EUR10,000 or more, or the equivalent amount in another currency, to a Customs Officer.

Facilities are being made available for persons who are travelling with in excess of EUR10,000 to declare the money at departure and arrival within the Bailiwick. The United Kingdom and the European Union have adopted similar reporting requirements.

A person travelling into or out of the Bailiwick will need to declare the nature and amount of cash (EUR10,000 or more or equivalent), their personal details including name, date and place of birth and nationality, the full name and address of the owner of the cash (if different) and the full name and address of any intended recipient of the cash.

They will also need to declare the provenance and intended use of the cash, the transport route and the means of transport.

Failure to declare the cash may render the person importing or exporting it liable to prosecution, and may result in a prison sentence, fine or to both and the cash will become liable to forfeiture.

A Customs spokesman commenting on the matter stated this week that:

“This Law brings Guernsey into line with the UK and the rest of the EU. The Law is another strand in the global anti – money laundering regime to make it difficult for criminals to launder the proceeds of criminal conduct or terrorism."

"The Law enables persons conducting legitimate business to be able to declare cash amounts of EUR10,000 or more and it is this services aim to make this as easy as possible with the minimum of disruption. Forms and “drop boxes” will be provided at all main arrival and departure points within the Bailiwick."

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