Jersey FSC Plans To Widen Scope Of Exchange Controls

by Jason Gorringe, Tax-News.com, London

25 March 2003

A consultation paper has been published by the Jersey Financial Services Commission outlining how those handling foreign exchange transactions can better protect themselves from the money launderers, according to a report from the Jersey Evening Post.

The Commission's director general, Richard Pratt, explained that Jersey has always taken the money laundering threat seriously and ensured that the appropriate controls have been in place. However the financial services environment is constantly changing, he said, and therefore it is necessary to review these procedures to ensure they remain watertight in future years.

Nevertheless, whilst existing legislation is in place for the island's large financial services and banking sector, there is no such legal framework covering other sectors which regularly handle foreign exchange transactions, such hotels, post offices, travel agents and other non-financial businesses.

The consultation paper proposes to address this legislative loophole by issuing licences to business that are within the non-bank money sector, thus bringing Jersey into line with many other offshore jurisdictions.

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