Jersey AML registration– update on non-executive directors and step-by-step guidance on how to register

Contents

Please click on the links below to jump to the relevant section:

• Overview

• Non-Resident Directors

• Resident Non-Executive Directors

• How to Register – Step-by-Step

Overview

Earlier this year, we published a summary of the recent changes to the scope of Jersey’s proceeds of crime and anti-money laundering (AML/CFT) legislation which were intended to align Jersey’s regime more closely with Financial Action Task Force Recommendations (see Recent changes to Jersey's AML/CFT regime – a user-friendly summary and FAQ | Carey Olsen).

One of the key changes made has been to remove exemptions for AML registration for people carrying on the business of being a non-executive director.

Over the course of the summer, there has been considerable consultation between industry, government and the Jersey Financial Services Commission (JFSC) regarding the scope of the changes and the JFSC has published FAQs and guidance to assist entities and individuals to navigate the new requirements. The JFSC also helpfully extended the registration deadline for certain in-scope entities and individuals (including directors and family offices) to 30 September. The guidance issued by the JFSC on 18 September regarding the interpretation of "in or from within Jersey" has been particularly welcomed by industry.

Non-Resident Directors

We are pleased to confirm that, in accordance with this most recent guidance, most non-resident directors (NRDs) will be out of scope for Schedule 2 registration.  The mere provision of services to customers in Jersey or occasional visits to Jersey to attend board meetings is not sufficient to bring NRDs into scope.  Instead, NRDs will only be required to register if they have some degree of permanence in Jersey (i.e. an office from which they work when in Jersey which is taken in their own name for the purpose of their business activities).

Resident Non-Executive Directors

Jersey resident non-executive directors, on the other hand, are likely to fall within the scope of Schedule 2 and therefore will be required to register and comply with the applicable AML/CFT requirements from 1 October 2023. By "non-executive director" we mean a director who receives remuneration or other compensation specifically for fulfilling the office of director, and not for some other role of which their office of director forms part (for example as a company/group employee, an executive director under a director's service contract for a specific role such as CEO or CFO, or an employee of a corporate services provider who provides director services to a company in that capacity).

Newly in-scope directors will be able to take advantage of some (albeit temporary and limited) concessions from the requirement to comply with Jersey's AML/CFT regime which are available until 30 September 2024. This includes the requirements to maintain policies, procedures and training to prevent and detect money laundering and to conduct a business risk assessment. It should be noted that, while Schedule 2 directors do not need policies and procedures, they still need to comply with the other applicable requirements of Jersey's AML/CFT regime (including the application of customer due diligence measures).

How to Register – Step-by-Step

Registration must be made through the JFSC's online portal at https://myprofile.jerseyfsc.org/

1. Choose the option to register and complete your details in order to obtain a login.
2. Once logged in, click on 'My Applications' and then 'New Application'.
3. From the drop-down menu, select 'Supervisory Bodies Law'.
4. Suggested responses to the questions are set out below: 

If you would like to discuss any aspects of the AML/CFT legislation as it relates to non-resident directors and resident non-executive directors, please speak to a member of our regulatory services team.