Jersey’s regulatory environment is constantly evolving to protect its stakeholders and maintain the jurisdiction’s reputation as an international finance centre of excellence, with a robust regulatory framework and tax regulation that meets the highest international regulatory standards and transparency.
An early adopter of best practice on financial regulation in Jersey, the jurisdiction has been swift to implement international standards and initiatives which has helped reinforce our reputation as a jurisdiction of quality and substance. This is reflected in the many endorsements received from authorities such as the Organisation for Economic Cooperation and Development (OECD), the International Monetary Fund (IMF) and MONEYVAL (the Council of Europe’s monitoring body for anti-money laundering). Jersey is also one of the few jurisdictions with an existing, effective and fit-for-purpose central register of company beneficial ownership, a specific recommendation from the OECD’s Financial Action Task Force.
Strong regulation and intelligent international compliance are critical to our competitive offering; a priority shared by government, industry and regulator, and a position consistently recognised by international evaluation bodies. Our regulation responds to changing international expectations, and is implemented in a way that is proportionate to our industry and its clients.
Tax Transparency in Jersey
To ensure the right tax is being paid, strong regulation is essential. Our regulatory framework and tax transparency are some of the strongest in the world, and it’s designed to bring clarity and transparency to the world of finance. Jersey financial service providers make certain they know exactly where all the money in Jersey has come from, and exactly where it’s going. We then share that information with the relevant authorities and governments, working together to ensure the tax due is being paid. This constant communication on tax regulation is vital in fighting financial crime and corruption. See the Transparency Timeline for more information on key tax transparency milestones.
The Financial Action Task Force (FATF) is the global money laundering and terrorist financing watchdog. It makes recommendations which, if implemented and followed, combat the misuse of financial systems. Initially, these recommendations were aimed at the laundering of drug money, but this has been revised to reflect evolving money laundering trends and to deal with specific issues such as:
- organised crime
They also help authorities go after the money of criminals dealing in illegal drugs, human trafficking and other crimes. The FATF also works to stop funding for weapons of mass destruction.
The 40 recommendations have been endorsed by over 200 countries and jurisdictions. They are universally accepted to set the international standard for anti-money laundering (AML) and countering the financing of terrorism (CFT). The Government of Jersey’s FATF and MONEYVAL page provides more detail.
MONEYVAL is the Committee of Experts which evaluates AML and CFT measures within Europe. It does so by first assessing compliance with the international standards (including the FATF Recommendations) and then reviewing the effectiveness of their implementation. Visit the Government of Jersey’s FATF and MONEYVAL page for more information.
Combating Financial Crime
To ensure the continued integrity of the global financial system, Jersey must play its part in successfully combating financial crime. The finance industry is committed to working with the regulator and government to maintain Jersey’s reputation and status as a jurisdiction that complies fully with international standards and tax regulation.
The Government of Jersey’s financial crime strategy focuses on combatting financial crime and finance regulation, through a range of strategic initiatives to demonstrate Jersey’s commitment to strengthening its defences against money laundering and terrorist financing. Jersey’s first national risk assessment (NRA published in 2020) is a tool that allows all stakeholders to better understand the risk of Jersey being used by criminals to launder the proceeds of crime.
Further risk assessments and a refresh of the NRA are being published (link to NRA page) to give an objective view of the risk profile in all relevant areas. The Government’s Financial Crime Strategy Group ensures that the Island fully implements international financial crime standards, while remaining financially competitive.
For more information on Jersey’s financial crime strategy, as well as useful tools and resources on financial regulation visit the Government of Jersey’s Strategy for Combatting Financial Crime page.