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Newsletter | Articles   Islands to Strengthen Anti-Money Laundering LawsExtra measures to prevent Jersey, Guernsey and the Isle of Man being used by money launderers or for financing terrorism are being put in place. Jersey, Guernsey and the Isle of Man are extending their anti-money laundering controls. The move is in preparation for a visit by the International Monetary Fund (IMF) next year when it will review the Islands’ performance as financial centres and assess how each complies with international standards in anti-money laundering and countering the financing of terrorism. The IMF review will be testing for active compliance with international standards. In the Isle of Man the Criminal Justice (Money Laundering) Code 2007 came into effect on September 1, 2007. It revokes and replaces the Anti-Money Laundering Code 2007, which will in turn revoke the Anti-Money Laundering Code 1998 (as amended). The Criminal Justice (Money Laundering) Code 2007 is in line with Financial Action Task Force (FATF) standards from when it amended its regulations in 2003 and contains minor amendments following the latest consultation on the Anti-Money Laundering Code 2007.  A spokesperson for the IOM Financial Services Commission said: “The Isle of Man Government and the Commission are committed to continually reviewing the Island's legislation and regulations against the recognised international standards of the day.”The IOM FSC will also be consulting on anti-money laundering legislation and guidance notes, which will be produced in a hand book, specific to IOM licence holders about how the Commission would expect institutions to fulfil their responsibilities under the new legislation. Every licence holder must have a Money Laundering Reporting Officer, keep adequate records and have effective staff training in this area. The definition of business caught by the new standards goes much wider than financial services and includes Estate Agents, Bookmakers, Casinos and Local Authorities amongst others. The international standards, against which Guernsey was assessed by the IMF in 2002 as having a ‘high level of compliance’, have not stood still. For example, the FATF has issued revised Recommendations. As a result, the Commission has prepared revised AML/CFT Regulations for financial services businesses, which in Guernsey include trust and company service providers, together with a Handbook which will contain rules and guidance. It is proposed the Regulations and the Handbook will be issued in final form in September 2007 and come into effect at the end of 2007.  Proposals in two consultation papers suggest how changes could be made in Jersey to bring the Island’s regulations into line with those standards.Martin De Forest-Brown, the States Director of International Finance, said: “It is imperative Jersey gets a good result from the IMF review next year. We have established an excellent reputation as a well regulated international financial services centre and we must continue to be vigilant and flexible, ensuring that we take all necessary steps to maintain our position.” The first of two consultation papers sets out proposals which, for the first time, would require certain business sectors, including estate agents, high value goods dealers, lawyers, accountants and auditors, to comply with laws which prevent Jersey businesses being used by people seeking to launder money or finance terrorists. The second consultation paper proposes a legal framework to supervise these businesses. Businesses already complying with these regulations, but whose compliance is not overseen by a supervisory authority, such as lenders, money brokers, electronic money issuers and money service businesses will become subject to oversight by an authority. |