After months – if not years – of preparation, the latest MONEYVAL assessment was published, outlining Jersey’s anti-money laundering and terrorist financing capabilities and its ability to combat and prosecute financial crime. And it was a highly positive report.
Jersey was Compliant or Largely Compliant with 39 out of 40 recommendations set out by Financial Action Task Force (FATF). That puts Jersey at the very top compared to other jurisdictions, large and small, that have undergone this sort of evaluation. There are few jurisdictions worldwide that achieve this level of technical compliance in their Mutual Evaluation Report. In addition, Jersey was assessed highly as regards the effectiveness of its implementation of the FATF Recommendations.
But here’s the thing – though that day at the end of July may have marked a significant milestone, it is still just that. A milestone. A point in time along a long journey.
Because tackling financial crime is not just a box ticking exercise or a one-off compliance issue – it’s at the heart of our reputational differentiation as a jurisdiction. That confidence and reassurance we can give investors, families, businesses and asset managers, sits alongside our collective experience and our high-quality service levels.
It doesn’t sit separate to or even alongside our financial service offering; it forms an integral part of it.
That’s really important as we continue to build and nurture an industry in Jersey that isn’t just a handy or convenient option, but a jurisdiction where high-quality clients want to do business; because they trust us and know that their assets, their wealth, their deposits, their funds are going to be looked after in the most professional, robust way.
Interestingly, in the past, the opposite might have been the case – it’s possible that Jersey may have missed out on business being booked here decades ago because its regulatory standards were too high compared to other locations. But we’ve remained unwavering in our belief that being a responsible global citizen is the right thing to do – and we are now seeing that strategy pay off, as high-quality investors seek high-quality jurisdictions to support them.
We’ve seen that play out in a number of ways – Jersey has, for example, seen a rise in recent years in securitization work that has moved from grey-listed jurisdictions in the Caribbean, with issuers and investors having been more comfortable with the environment Jersey has offered.
And it’s a trend that will persist, which is why making sure we continue to set the standards through assessments like MONEYVAL is critical to our long-term success. We need to continue to live and breathe these values on an ongoing basis.
A fast-moving world
When it comes to fighting financial crime, tackling money laundering and clamping down on the terrorist financing, the world moves fast.
It’s interesting looking back to remind ourselves where we have come from. Ten years ago, for instance, the OECD unveiled its new single global standard for the automatic exchange of information between tax authorities worldwide – the Common Reporting Standard – which Jersey signed up to as an early adopter.
At the time, it was a big shift – and the commitment made by Jersey earned it praise that same year from then Exchequer Secretary to the Treasury, David Gauke, who described Jersey as being at “the forefront” globally on the agenda for tax transparency. Today, of course, the CRS is embedded as ‘business as usual’ within industry reporting processes.
Fast forward to today and notably, the latest MONEYVAL assessment praised Jersey’s regime concerning the accuracy and transparency of beneficial ownership information. So it’s fitting that this month, the Government of Jersey passed new legislation (awaiting Privy Council approval, as at the time of writing) to enhance the accessibility of beneficial ownership information held on the Jersey Registry to ‘obliged entities’, to make it easier and more efficient for organisations to undertake their due diligence work.
The transparency of beneficial ownership information has never been far off the radar – and this is another example of Jersey moving in line with the transparency agenda, to support better decision making and more effective compliance processes.
Of course, while MONEYVAL found that no “fundamental improvements” are required to the Jersey regime, an assessment wouldn’t be an assessment if it didn’t make some further recommendations in line with the future direction of travel.
And as a jurisdiction a number of measures are already under way to address those recommendations – including to further reinforce the practical application of its frameworks for investigations and prosecutions for money laundering, as well as the enforcement of sanctions related to anti money laundering and terrorist financing preventative measures.
Both the Government of Jersey and the JFSC have already set out their timetable and action plans to address those recommendations, with Jersey expected to report back to MONEYVAL under its regular follow-up reporting process in December 2026.
The work to combat financial crime is not over, and never will be. From exchanging information through CRS and sharing beneficial ownership information to enforcing sanctions and enhancing prosecutions, Jersey, like every jurisdiction, has to continuously adapt to meet changing threats.
But by integrating high standards into our everyday workflows and working collaboratively across the industry, we can create a regulatory environment that can ensure Jersey remains competitive in an international marketplace; that supports sustainable growth; and that can help earn Jersey further praise from global authorities in another ten years’ time…and beyond.
Visit our Knowledge Hub to read more about why Jersey’s MONEYVAL success matters in our update for financial intermediaries.
