CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. Jersey's Money Service Businesses Face Tougher Regulation

Jersey's Money Service Businesses Face Tougher Regulation

by Robert Lee,, London

24 November 2006

The Jersey Financial Services Commission is proposing to tighten anti-money laundering rules governing money service businesses such as bureaux de change, money transmitters and cheque cashers.

Although money service businesses are already required by the Money Laundering (Jersey) Order 1999 to have systems and training to forestall and prevent money laundering, there is no body responsible for ensuring that such businesses implement the requirements of the Money Laundering Order effectively.

According to the JFSC, the absence of such an oversight regime means that Jersey falls below international standards set by the Financial Action Task Force, a fact which was noted by the International Monetary Fund (IMF) in its 2003 assessment on the supervision and regulation of the financial sector in Jersey.

The proposed legislation, which has been set out in a new consultation paper, will affect those carrying on the following activities:

  • Foreign currency exchange. This will include post offices, travel agents, and hotels.
  • Money transmission (or any representation of money, such as travellers’ cheques). This will include banks and those offering money transfer services, including some issuers of electronic money.
  • Third party cheque cashing. This will include shops that, by arrangement with a bank, cash cheques made payable to customers, e.g. cashing pay cheques.

The Commission’s intention is that only the largest providers of money service business will have to seek the prior authorisation of the Commission to carry on money service business. To achieve this, the Commission is proposing an exemption that will allow a person with money service business turnover at or below a prescribed amount (currently a figure of GBP50,000 is suggested in the consultation paper) to lawfully carry on money service business after simply notifying the Commission of its intention to do so.

The Commission's consultation on the proposals concludes on 1 February, 2007.

To see today's news, click here.


Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »

Stay Updated

Please enter your email address to join the mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.

To manage your mailing list preferences, please click here »