Money Laundering
(Amendment No. 7) (Jersey) Order 2014
Made 20th October 2014
Coming into force 27th
October 2014
THE CHIEF
MINISTER, in
pursuance of Articles 37 and 43 of the Proceeds of Crime (Jersey)
Law 1999[1], and having consulted the Jersey
Financial Services Commission, orders as follows –
1 Interpretation
In this Order “principal
Order” means the Money Laundering (Jersey) Order 2008[2].
2 Article 1
of principal Order amended
In Article 1 of the principal
Order –
(a) in paragraph (1), for the definition “insurance
business” there shall be substituted the following
definition –
“ ‘insurance
business’ means any long term-business, within the meaning given to that
term in Article 1(1) of the Insurance Business (Jersey) Law 1996[3] but does not include –
(a) any
insurance
business described in Article 5(5)(a) of that Law; or
(b) any insurance business described in Article 1 of the
Insurance Business (General Provisions) (Jersey) Order 1996[4];”;
(b) after paragraph (2) there shall be added the following
paragraphs –
“(3) In this Order a person is
regarded as being resident in a country if –
(a) in
the case of an individual, he or she has provided an address in that country;
or
(b) in
the case of a legal person, the person is registered, incorporated or otherwise
established under the law of that country.
(4) In this Order a
reference to a country not being compliant with FATF recommendations is a
reference to a country in respect of which FATF has made a public statement
identifying the country as one with deficiencies in its anti-money laundering
strategy or its strategy for countering the financing of terrorism.”.
3 Article 11
of principal Order amended
In Article 11(3)(d) of the principal Order, for the words “that does
not apply, or insufficiently applies, the FATF recommendations” there
shall be substituted the words “in relation to which the FATF has called
for the application of enhanced customer due diligence measures”.
4 Article 13
of principal Order amended
In Article 13 of the principal
Order –
(a) in paragraph (3A), for the words
“Article 3(4)” there shall be substituted the words
“Article 3(4)(a)”;
(b) in paragraph (11) –
(i) for the words “paragraph (10)” there shall be
substituted the words “this paragraph”, and
(ii) in
sub-paragraph (b) the words “and (3)” shall be deleted.
5 Article 15
of principal Order amended
In Article 15 of the principal
Order –
(a) in paragraph (1)(a) for the words “where paragraphs (3),
(3A), (4), (4A) and (5)” there shall be substituted the words
“where any of paragraphs (2A), (3), (3A), (4), (4A), (5), (8), (10)
and (11)”;
(b) after paragraph (2) there shall be inserted the
following paragraph –
“(2A) This paragraph applies
to a customer that has or proposes to have a business relationship, or proposes
to carry out a one-off transaction, with a relevant person where –
(a) that
person is not resident in the customer’s country of residence; and
(b) that
person is not resident in the same country as the country from which or from within
which the customer is carrying on business.”;
(c) in paragraph (3B) –
(i) in sub-paragraph (c) the words “or incorporated”
shall be deleted,
(ii) in
sub-paragraph (d) for the words “a registered office or other
address” there shall be substituted the words “an address”;
(d) after paragraph (7) there shall be added the following
paragraphs –
“(8) This paragraph applies where
the relevant person provides or proposes to provide a customer with private
banking services.
(9) For the purposes of
paragraph (8) a service shall be regarded as a private banking service
if –
(a) the service is offered,
or it is proposed to offer the service, only to persons identified by the
service provider as being eligible for the service, having regard to the
person’s net worth; and
(b) the
service –
(i) involves
a high value investment,
(ii) is a non-standard
banking or investment service tailored to the person’s needs, or uses
corporate or trust investment structures, tailored to the person’s needs,
or
(iii) offers
opportunities for investment in more than one jurisdiction.
(10) This paragraph applies where
the customer of the relevant person is –
(a) a
legal person established by an individual for the purpose of holding assets for
investment purposes; or
(b) an
individual acting on behalf of a legal arrangement established for the purpose
of holding assets for investment purposes.
(11) This paragraph applies where
the customer of the relevant person is a company with nominee shareholders
or that issues shares in bearer form.”.
6 Article 16A
of principal Order amended
At the end of Article 16A(2)(b) of the principal Order for the word
“and” there shall be substituted the word “or”.
7 Article 17
of principal Order amended
In Article 17 of the principal
Order –
(a) in
paragraph (4), for the words “having regard to the customer’s
business and the higher risk of money laundering” there shall be substituted
the words “having regard to the risk of money laundering inherent in the
customer’s business and the higher risk of money laundering associated
with that type of business”;
(b) in
paragraph (9)(a), for the words “having regard to the
customer’s business and the higher risk of money laundering” there
shall be substituted the words “having regard to the risk of money
laundering inherent in the customer’s business and the higher risk of
money laundering associated with that type of business”;
(c) after paragraph (9), there shall be inserted the
following paragraph –
“(9A) If, having satisfied the conditions in
paragraph (4) in relation to a customer to which paragraph (3)
applies, or paragraph (9) in relation to a customer to which paragraph (5),
(6), (7), or (8) applies, the relevant person does not apply the identification
measures specified in Article 3(2)(b), the
relevant person shall instead –
(a) consider the value and
extent of any third party’s financial interest in the product,
arrangement, account or other investment vehicle offered to the customer by the
relevant person; and
(b) where the relevant
person considers that the value or financial interest of the third party is
significant, apply the identification measure described in Article 3(4)(a) to that third party.”;
(d) in paragraph (12)
for the word “Regulation” there shall be substituted the word
“Article”;
(e) for paragraph (14) there shall be substituted the
following paragraph –
“(14) Nothing in this Article shall permit a
relevant person to apply simplified identification measures if –
(a) the
relevant person suspects money laundering;
(b) the
relevant person considers that there is a higher risk of money laundering on
the basis of the assessments made under paragraph (4) or (9);
(c) the
customer is resident in a country that is not compliant with the FATF
recommendations;
(d) the
customer is a person in respect of whom Article 15(3A) applies; or
(e) the
customer is a person in respect of whom Article 15(4) applies.”.
8 Article 18
of principal Order amended
For Article 18(9) of the
principal Order there shall be substituted the following paragraph –
“(9) Nothing in this Article shall
apply if –
(a) the
relevant person suspects money laundering;
(b) the
relevant person considers that there is a higher risk of money laundering;
(c) the
customer is resident in a country that is not compliant with the FATF
recommendations; or
(d) the
customer is a person in respect of whom Article 15(3A) applies.”.
9 Citation
and commencement
This
Order may be cited as the Money Laundering (Amendment No. 7) (Jersey)
Order 2014 and shall come into force 7 days after it is made.
senator i.j. gorst
Chief
Minister