Proceeds of Crime
(Substitution of Schedule 2) (Jersey) Regulations 2008
Made 12th February 2008
Coming into force 19th
February 2008
THE STATES, in pursuance of Article 36(2) of the Proceeds of Crime (Jersey) Law
1999[1], have made the following
Regulations –
1 Interpretation
In these Regulations, “the Law”
means the Proceeds of Crime (Jersey) Law 1999[2].
2 Substitution
of Schedule 2 to the Law
For the Second Schedule to the Law there shall be substituted the
following Schedule –
“SCHEDULE 2
(Article 36(1) and (2))
FINANCIAL SERVICES BUSINESS
PART A
BUSINESSES REGULATED BY THE
COMMISSION
1. Any deposit-taking business as
defined in Article 1 of the Banking Business (Jersey) Law 1991[3] except the doing of anything
described in Article 8(2) (a) to (c) of that Law.
2. Any long-term business as
defined in Article 1(1) of the Insurance Business (Jersey) Law 1996[4] except –
(a) insurance business described in Article
5(5)(a) of that Law;
(b) insurance business described in Article 1 of
the Insurance Business (General Provisions) (Jersey) Order 1996.
3. The business of being a
functionary as defined in Article 1 of the Collective Investment Funds (Jersey)
Law 1988[5].
4. Financial service business as
defined in Article 1(1) of the Financial Services (Jersey) Law 1998[6] –
(a) including the activities described in
Schedule 2 to that Law except those mentioned in –
(i) paragraphs
1, 4, 10, 14 and 15,
(ii) paragraph 7
where a person accepts or becomes a party to an instrument as principal,
(iii) paragraph 8
where the persons described in sub-paragraphs (1), (2) or (3) are connected
companies, except in the circumstances described at the end of sub-paragraph
(2) or (3),
(iv) paragraph 16
except where a person is acting as a protector of a trust by way of business;
(b) excluding general insurance mediation
business;
(c) excluding investment business carried on by
an overseas person mentioned in Article 1 of the Financial Services
(Investment Business (Overseas Persons – Exemption)) (Jersey) Order
2001[7] where that business is
carried on in the circumstances described in that Order;
(d) excluding trust company business carried on
by a person specified in any of the paragraphs in the Schedule to the Financial
Services (Trust Company Business (Exemptions)) (Jersey) Order 2000[8] specified below where the
business is carried on in the circumstances described in that
paragraph –
(i) paragraph
4 (private trust company business),
(ii) paragraph
8 (address providers),
(iii) paragraph
11(connected company),
(iv) paragraph
12 (introducer),
(v) paragraph
13 (director),
(vi) paragraph
15 (director – registered person),
(vii) paragraph
16 (liquidators and trustees in bankruptcy of persons other than registered
persons),
(viii) paragraph
18 (recruitment agents);
(e) excluding trust company business carried on
by a person specified in any of the paragraphs in the Schedule to the Financial
Services (Trust Company Business (Exemptions No. 2) (Jersey) Order 2000[9] specified below where that
business is carried on in the circumstances described in that
paragraph –
(i) paragraph
1 (overseas persons),
(ii) paragraph
2 (unit holding nominee company),
(iii) paragraph 3
(electronic communications service providers);
(f) excluding trust company business
carried on by a person specified in either of the paragraphs in the Schedule to
the Financial Services (Trust Company Business (Exemptions No. 3))
(Jersey) Order 2001[10] specified below where that
business is carried on in the circumstances described in that
paragraph –
(i) paragraph
1 (private protector company),
(ii) paragraph
4 (investment company subsidiary);
(g) excluding trust company business carried on
by a person specified in paragraph 1 (connected persons) of the Schedule to the
Financial Services (Trust Company Business (Exemptions No. 4)) (Jersey)
Order 2001[11] where that business is
carried on in the circumstances mentioned in that paragraph.
PART B
OTHER BUSINESSES
1 Lawyers
(1) The business of providing services by
independent legal professionals.
(2) In this paragraph ‘independent legal
professionals’ means those who by way of business provide legal or
notorial services to third parties when participating in financial or immovable
property transactions concerning any of the following –
(a) the buying and selling of immovable property
or business entities;
(b) the managing of client money, securities or
other assets;
(c) the opening or management of bank, savings
or securities accounts;
(d) the organisation of contributions necessary
for the creation, operation or management of companies; or
(e) the creation, operation or management of
trusts, companies or similar structures.
(3) Sub-paragraph (2) does not include
legal professionals employed by public authorities or undertakings which do not
by way of business provide legal services to third parties.
(4) For the purposes of this paragraph, a person
participates in a transaction by assisting in the planning or execution of the
transaction or otherwise acting for or on behalf of a third party in the
transaction.
(1) The business of providing any of the
following –
(a) external accountancy services;
(b) advice about the tax affairs of another
person;
(c) audit services; or
(d) insolvency services.
(2) ‘External accountancy services’
means accountancy services provided to third parties and excludes services
provided by accountants employed by public authorities or by undertakings which
do not by way of business provide accountancy services to third parties.
(3) ‘Audit services’ are audit
services provided by way of business pursuant to any function under any
enactment.
(4) ‘Insolvency services’ are
services provided by a person if, by way of business, that person accepts
appointment as –
(a) a liquidator under Chapter 4 of
Part 21 of the Companies (Jersey) Law 1991[12];
(b) an insolvency manager appointed under Part 5
of the Limited Liability Partnerships (Jersey) Law 1997[13] as that Law has effect in
its application to insolvent limited liability partnerships pursuant to the
Limited Liability Partnerships (Insolvent Partnerships) (Jersey) Regulations
1998[14]; or
(c) as agent of an official functionary
appointed in the case of a remise de biens, cession, or désastre.
The business of providing estate
agency services for or on behalf of third parties concerning the buying or
selling of freehold (including flying freehold) or leasehold property
(including commercial and agricultural property) whether the property is
situated in Jersey or overseas.
4 Services provided by high
value dealers
(1) ‘High value dealers’ means
persons who, by way of business, trade in goods when they receive, in respect
of any transaction, a payment or payments in cash of at least 15,000 Euros (or
sterling equivalent) in total, whether the transaction is executed in a single
operation or in several operations which appear to be linked.
(2) In this paragraph, ‘cash’ means
any of the following in any currency – notes, coins,
travellers’ cheques, bearer negotiable instruments.
5 Casinos (including
internet casinos)
(1) The business of operating a casino.
(2) For the purposes of this Law, a casino is an
arrangement whereby people are given an opportunity to participate in one or
more casino games.
(3) ‘Casino game’ means a game of
chance –
(a) that
involves playing or staking against a bank (whether described as a
‘bank’ and whether or not controlled or administered by a player);
and
(b) where
the chances are not equally favourable to all participants.
(4) For the avoidance of doubt, the provision of
the game commonly known as Crown and Anchor in the circumstances permitted
under Regulation 9 of the Gambling (Gaming and Lotteries) (Jersey)
Regulations 1965 does not fall within sub-paragraph (1).
6 Unregulated funds business
The business of a scheme or arrangement prescribed under
Article 3(7) of the Collective Investment Funds (Jersey) Law 1988 other
than a scheme or arrangement which is not a collective investment fund under
the Collective Investment Funds (Restriction of Scope) (Jersey) Order 2000.
The business of providing any
of the following services to third parties not otherwise included in this
Schedule –
(a) acceptance of deposits and other repayable
funds from the public;
(b) lending, including consumer credit, mortgage
credit, factoring (with or without recourse), financing of commercial
transactions (including forfeiting);
(c) financial leasing;
(d) money transmission services;
(e) issuing and administering means of payment
(such as credit and debit cards, cheques, travellers’ cheques, money
orders and bankers’ drafts, and electronic money);
(f) guarantees and commitments;
(g) trading for the account of third parties
in –
(i) money market instruments (cheques,
bills, certificates of deposit, derivatives etc.),
(ii) foreign exchange,
(iii) futures and options (financial and
commodity),
(iv) exchange, interest rate and index
instruments,
(v) transferable securities;
(h) participation in securities issues and the
provision of services related to such issues;
(i) advice to undertakings on capital
structure, industrial strategy and related questions and advice as well as
services relating to mergers and the purchase of undertakings;
(j) money broking;
(k) portfolio management and advice;
(l) safekeeping and administration of
securities;
(m) safe custody services;
(n) otherwise investing, administering or
managing funds or money on behalf of third parties.
8 The business of forming
and administering legal persons or arrangements
The business of providing
services to or in respect of types of legal person or arrangement other than
those described in Article 2(5)(a) and (b) of the Financial Services
(Jersey) Law 1998, in the course of which services are provided that are
similar or equivalent to those described in Article 2(4) of that Law as if
Article 2(4) referred to that type of legal person or arrangement.”.
3 Citation
and commencement
These Regulations may be cited as the Proceeds of Crime
(Substitution of Schedule 2) (Jersey) Regulations 2008 and shall come into
force 7 days after they are made.
a.h. harris
Deputy Greffier of the States