WHAT ARE THE
Money laundering and terrorism financing laws in Guernsey?
Money Laundering Regulations in Guernsey:
- The Criminal Justice (Proceeds of Crime) (Bailiwick of Guernsey) Law, 2017: This law is the primary legislation in Guernsey for combating money laundering. It outlines the legal framework for the prevention and detection of money laundering activities in the jurisdiction.
- Financial Intelligence Service (FIS): The FIS is the national authority responsible for receiving, analysing, and disseminating information related to suspicious transactions and money laundering activities in Guernsey. It operates as part of the Law Enforcement Division and plays a crucial role in the AML regime in Guernsey.
- Supervisory Authorities: Various supervisory authorities oversee compliance with AML regulations in Guernsey. The Guernsey Financial Services Commission (GFSC) supervises and regulates financial institutions, while other authorities oversee designated non-financial businesses and professions (DNFBPs).
Terrorism Financing Laws in Guernsey:
- Guernsey's laws related to terrorism financing are integrated into its broader AML framework. The same regulations and measures in place to combat money laundering are also used to detect and prevent terrorism financing activities.
International Cooperation:
- Guernsey cooperates with international organisations and other countries to combat money laundering and terrorism financing. It has established strong ties with international bodies such as the Financial Action Task Force (FATF) and works closely with them to maintain effective AML measures.
WHO ARE THE
ML/TF regulators in Guernsey and what functions do they perform?
Guernsey, a British Crown Dependency, has a well-established regulatory framework to combat money laundering and terrorism financing. The primary regulators and authorities responsible for overseeing and enforcing anti-money laundering (AML) and counter-terrorism financing (CTF) regulations in Guernsey include:
- Guernsey Financial Services Commission (GFSC): The GFSC is the primary regulatory authority in Guernsey responsible for overseeing and regulating financial services and activities in the jurisdiction. This includes banks, insurance companies, investment firms, and other financial institutions. The GFSC ensures compliance with AML and CTF regulations and monitors the financial industry to maintain the integrity of the financial system.
- Guernsey Financial Intelligence Service (FIS): The Guernsey FIS serves as the national financial intelligence unit (FIU) responsible for receiving, analysing, and disseminating information related to suspicious transactions and potential money laundering or terrorism financing activities. It plays a crucial role in detecting and preventing financial crimes.
- States of Guernsey Law Enforcement: The law enforcement agencies in Guernsey, including the Guernsey Police and other relevant authorities, work in coordination with regulatory bodies to investigate and prosecute money laundering and terrorism financing offenses.
- The Guernsey Bar: Lawyers and law firms in Guernsey are subject to AML and CTF regulations. The Guernsey Bar oversees compliance within the legal profession.
- The Guernsey Society of Chartered and Certified Accountants: Accountants and audit firms in Guernsey are regulated by the Guernsey Society of Chartered and Certified Accountants. They are subject to AML and CTF regulations, and the society monitors their compliance.
- Guernsey Financial Services Ombudsman (GFSO): The GFSO is responsible for resolving disputes between financial services providers and their clients. While not a direct AML/CTF regulator, it plays a role in addressing complaints related to financial services, which may involve AML and CTF issues.
- Sanctions Compliance: Guernsey complies with international sanctions imposed by the United Nations (UN), the European Union (EU), and other relevant bodies. Sanctions compliance is an essential aspect of AML and CTF efforts.
- International Cooperation: Guernsey cooperates with international organisations and other countries to combat money laundering and terrorism financing. It aligns its AML and CTF efforts with international standards set by organisations like the Financial Action Task Force (FATF).
WHAT ARE THE
Industry sectors subject to ML/TF regulations?
In Guernsey, a variety of industry sectors are subject to anti-money laundering (AML) and counter-terrorism financing (CTF) laws and regulations. These sectors are required to implement AML and CTF measures to prevent money laundering and terrorism financing activities. The key industry sectors subject to AML and CTF laws in Guernsey include:
Designated Non-Financial Businesses and Professions (DNFBPs)
DNFBPs are entities that are not financial institutions but can be exploited for money laundering and terrorism financing purposes.
Other sectors
WHAT ARE THE
Penalties for non-compliance with AML/CTF laws?
Guernsey has established penalties for non-compliance with anti-money laundering (AML) and counter-terrorism financing (CTF) laws and regulations to ensure that financial institutions and individuals adhere to these rules. The penalties for non-compliance with AML and CTF laws in Guernsey may vary depending on the specific violations and the severity of the offence. Some of the typical penalties and consequences for non-compliance with AML and CTF laws in Guernsey may include:
- Administrative Penalties: Regulatory authorities in Guernsey, such as the Guernsey Financial Services Commission (GFSC), can impose administrative penalties on financial institutions and individuals who fail to meet their AML and CTF obligations. These penalties often involve monetary fines, warnings, or other sanctions.
- Criminal Penalties: Serious non-compliance or involvement in money laundering or terrorism financing activities can lead to criminal prosecution. Criminal penalties may include imprisonment, substantial fines, or both for individuals and entities found guilty.
- Revocation of Licences: Regulatory authorities in Guernsey have the authority to revoke the licence of financial institutions or other businesses that are seriously non-compliant with AML and CTF regulations. This action can effectively terminate the operations of the entity in question.
- Seizure and Confiscation of Assets: Authorities in Guernsey can seize and confiscate assets that are determined to be connected to money laundering or terrorism financing.
- Disqualification and Prohibition Orders: Individuals who are found guilty of money laundering or terrorism financing offences may face disqualification from holding certain positions or conducting specific financial activities. Prohibition orders can restrict individuals from working in the financial sector.
- Civil Penalties: Apart from criminal penalties, civil penalties may be imposed on individuals and entities for non-compliance with AML and CTF regulations. These penalties often involve financial fines and other monetary sanctions.
- Reputation Damage: Non-compliance can significantly harm the reputation of individuals or institutions involved, which can have long-lasting consequences in the financial industry.