The latest version of the Jersey Financial Services Commission's rulebook for the prevention and detection of money laundering and the financing of terrorism has been updated to take account of the Money Laundering (Amendment No.10) (Jersey) Order 2019 coming into effect on 12 June.

In the corporate governance section, the JFSC has noted in section 2.7 that a financial group of which a relevant person (a Jersey financial firm) is a member must maintain a group 'programme' (presumably some kind of plan of action) for the sharing of AML/ATF information.

The JFSC adds that article 11A(2) Money Laundering (Jersey) Order 2008 (which the new order has amended) now says that this plan of action must include:

• policies and procedures by which a relevant person in a financial group, which carries on financial services business or equivalent business, may disclose information to a member of the same financial group, as long as this is for the prevention/detection of money laundering;
• adequate safeguards for confidentiality;
• the monitoring and management of compliance with the policies and procedures (including the appointment of a compliance officer for the financial group); and
• the screening of employees.

Article 11A (3) says that this should include:

• information or evidence obtained from the application of identifying mechanisms;
• information about customers, accounts and transactions; and
• information relating to the analysis of transactions or activities that are considered unusual.

Regulatory requirements in the section to do with identifying measures are set out as AML/ATF codes of practice. A connected section about identification (on the subject of people's identities and obtaining evidence) mentions smart phones and tablets for the first time, saying that some apps may not "sufficiently mitigate the risks inherent in using such technology." The phrase "managing risks" appears throughout the document more frequently than before.

In some strictly limited cases, a Jersey financial firm may identify prospective customers by relying on identifying steps already taken by a party outside Jersey who is a member of the same financial group but not also an 'obliged person' (a firm that does equivalent business). To place such reliance on it, the Jersey firm must now "adequately mitigate any higher risk of money laundering must by the policies and procedures of the group." It must also be supervised by an overseas regulator for AML purposes and fulfil other pre-existing conditions.

In the "ongoing monitoring" section the JFSC places fresh emphasis on each firm keeping documents, data or information up-to-date and relevant "by undertaking reviews of existing records, particularly in relation to higher-risk categories of customers." Regulatory requirements are set in that section as AML/ATF codes of practice.

The recordkeeping section has been amended slightly. It always said that each firm must keep supporting documents, data and information in respect of a business relationship or one-off transaction, including documents, data and information obtained "under identification measures," whatever that means; accounts files; and business correspondence. It now adds "the results of any analysis undertaken." The rather vague stipulation that such records ought to be made available to the authorities "on a timely basis" has now changed to "swiftly."