beneficial ownership jersey model
TRANSCRIPT
Beneficial Ownership – the Jersey model
› Agenda
› Jersey policy› 2012 FATF standards› 4th Anti-Money Laundering
directive of the EU› E-enabling› Current Jersey Process› Future Jersey Processing
› Julian LambDirector, RegistryJersey Financial Services Commission
Located near France, in the Bay of St Malo
45 square miles in size
Population of app. 100,000
42,000 households
7,000 businesses
About Jersey
Jersey and the UK
Unique constitutional relationship since 1204
UK has constitutional responsibility for the defense of Jersey
Jersey is autonomous and self-governing - not part of UK or EU
Centuries of diverse and multi-cultural society
›
Jersey Policy
Current International Issues
InternationalStandards
Transparency Digital
› Jersey has collected beneficial ownership information centrally on Jersey companies and partnerships for over 20 years
› A policy designed to ensure the Companies Registry collects adequate, accurate and current information on Jersey companies and partnerships
› Different requirements imposed if company is incorporated by a local resident or administered by a Trust and Company Service Provider (“TCSP”)
› A central register of Beneficial Ownership
› Jersey has been recognised as an international leader on transparency of beneficial ownership
› The World Bank report “The Puppet Masters” outlined the Jersey model as an example
› Rated Largely Compliant by the IMF against 2003 FATF Recommendations in 2009
› Recently assessed by MONEYVAL – positive assessment
› Jersey continues to look to improve the regime in furtherance of the worldwide fight against financial crime
› Consultation published last week to ensure information held centrally is as “current” as reasonably possible
› The evolving “model”
Consultation recently published and closed on 7 April 2016: www.gov.je/Government/Consultations/Pages/BeneficialOwnershipofJerseyCompaniesandaRegisterofDirectors.aspx
› 2012 FATF standards
› Standard is developing, both in the FATF and the EU› FATF – R24 & Interpretive note to R24 & Interpretive note to
R10› “Adaquate, accurate and timely information”› “Adaquate” – 10% threshold on incorporation but ability to
ask for more› “Accurate” – Registry team staffed by experts conducting
verification exercises
› Development of the International Standard
› “Timely” information:› Subject of our current consultation › 70% of companies administered by TCSPs – up to date
information must be held by the TCSP on beneficial ownership and they are regulated by the JFSC
› Looking to develop intelligent digital interfaces to allow secure information transfer to the central registry
› Ultimately to be able to provide as up to date information as possible to law enforcement and tax authorities
› Development of the International Standard
› 4th Anti-Money Laundering Directive of the EU
› A major change across Europe
› Jersey is a “third country” to the EU
› We observe activity in Europe closely and have a Channel Islands Brussels Office (“CIBO”)
› 4MLD has been closely observed
› The Jersey model will look to match requirements of 4MLD
› 4MLD, along with the FATF guidelines will set the global precedent on requirements for information
› However…more advancement in Washington…
› The ‘Panama Papers’ and the UK Anti-corruption summit have intensified the international initiative
› Spring IMF Finance Ministers meeting resulted in a letter from the ‘G5’ to the ‘G20’ on automatic exchange of information
› And then even more advancement in Brussels…
› ECOFIN published a statement following a meeting on 22 April
› All EU Members States + others committed to the ‘pilot initiative’
› Not clear how it is to be implemented but it is hoped that a global standard will be implemented through the FATF
› UK Anti-corruption summit on 12 May 2016 should make the route forward clearer
› Consultation also has focus on Fintech solutions
› Jersey is on a Digital journey
› Jersey is looking to leverage its experience in regulation and registration in the digital world
› The aim is to allow seamless interaction in a digital world for ease of doing business in an international finance centre.
› E-enabling our regulated sector – the Digital journey for Jersey
› Beneficial ownership information is inherent to information on individuals
› Individuals regularly need to confirm their identity for numerous reasons
› How can information on individuals, stored digitally, be used more intelligently?
› Can the compliance headache be remedied by a central storage solution?
› Expanding the possibilities….
› Current Jersey Process
› Transparency for Registry (T4R) Programme Overview
Outcomes
Customer/Industry
Increased transparency
Excellent customer service
Simplification of doing business
Reduced processing times
Improved data integrity
Sound Business Practice Policy
Registry dashboard and SLA monitoring
Automated processes
Programme of work
Registry processing statement and enhancement forms
Policies, procedures, AML/CFT checks
Registry principles
› Established a Sound Business Practice Policy successfully adopted by our customers
› Publish the Registry Processing Statement (Service level Agreement)
› Focus on improving transparency but retaining excellent customer service levels (Balance the registry regulatory burden with the ease of doing business)
› Important to the Jersey finance industry as supports transparency and mitigates reputational risks to the Island.
› Transparency for Registry (T4R) Programme Overview
› Future Jersey Processing
› Improved interoperability› Leveraging the regulated sector› Joining systems to help law enforcement and tax authorities
have access to information› Cyber security› BRIS and Europe› The rest of the world
› E-enable
› We are in a time of un-paralleled change with political initiatives in this area› Jersey is a leader in transparency of beneficial ownership information and is fully
committed to the worldwide fight against financial crime› Observing developments internationally and keen to assist others from our experience
through technical assistance› Robust process to ensure our information is adequate and accurate› Our top priority is to combat financial crime and what is most important in this respect
is that law enforcement and tax authorities have access to information that is adequate, accurate and up-to-date.
› We are a cooperative jurisdiction committed to complying with international standards.› How can we e-enable to ensure greater efficiency for business?
› Final thoughts
