The MONEYVAL assessment is more than just a regulatory review; it serves as an independent confirmation of Jersey’s ongoing commitment to global financial standards.
International financial professionals play a pivotal role in guiding clients’ decisions about where to conduct financial activities. Jersey’s recent MONEYVAL evaluation underscores the jurisdiction’s commitment to international standards, offering intermediaries solid evidence to assure clients of Jersey’s robust financial system.
The MONEYVAL findings, combined with Jersey’s historical performance, solidify its reputation as a premier International Finance Centre (IFC) and offer a compelling reason to confidently recommend Jersey to your clients.
The Global Standard: FATF and MONEYVAL’s Role
At the core of Jersey’s regulatory framework is our compliance with the Financial Action Task Force (FATF) Recommendations. FATF is the global watchdog for anti-money laundering (AML) and countering the financing of terrorism (CFT).
Its 40 recommendations, endorsed by over 200 countries and jurisdictions, set the international standard for financial security.
MONEYVAL, the Committee of Experts evaluating AML and CFT measures within Europe, assesses jurisdictions against FATF’s standards. MONEYVAL’s fifth-round evaluation of Jersey in 2023, with a report issued in July 2024, concluded that Jersey performs exceptionally well in managing and mitigating financial risks.
Key Findings: Jersey's Regulatory Strengths
High Level Understanding of Risks
Jersey achieved a rare rating held by only three jurisdictions globally - Jersey, the UK, and Bermuda - for its high level of effectiveness in understanding and mitigating risks. This performance indicates Jersey's ability to manage the complexities it faces as a globally important financial centre. For financial intermediaries, this is a critical point: recommending a jurisdiction with such a robust understanding of financial risks provides peace of mind that Jersey can handle complex, cross-border transactions in a secure environment.
Compliance with 39 out of 40 FATF Recommendations
MONEYVAL’s evaluation showed that Jersey is “Compliant” or “Largely Compliant” with 39 out of 40 of FATF’s recommendations - an achievement few jurisdictions worldwide have matched. This high technical compliance with international laws and regulations ensures that Jersey operates within the most rigorous global financial standards. For intermediaries advising on jurisdictional risks, this performance offers clear evidence that Jersey is a reliable and well-regulated environment for financial activities. Clients can trust that their assets and transactions will be secure and compliant with global best practices.
Beneficial Ownership Transparency
A notable highlight of the report was the praise for Jersey’s beneficial ownership regime. MONEYVAL recognised Jersey's comprehensive framework for the accuracy and transparency of beneficial ownership information - a crucial factor in reducing financial crime risks. Jersey’s system includes thorough vetting of information and proactive registry supervision, setting it apart from most jurisdictions. This level of oversight enhances Jersey’s reputation for transparency and compliance, further supporting intermediaries in reassuring clients about Jersey’s suitability for complex financial structures.
No Fundamental Improvements Required
While all jurisdictions must continually adapt to evolving global threats, MONEYVAL’s report found that Jersey requires no fundamental improvements to its AML/CFT regime. This stability reflects Jersey's long-term commitment to maintaining and improving its regulatory standards. Intermediaries can use this finding to highlight Jersey’s readiness for the future, ensuring clients that Jersey remains not only a top-tier jurisdiction today but also one that is committed to staying ahead of emerging risks.
Why MONEYVAL Matters to Financial Intermediaries
Reputation Assurance
Jersey’s strong MONEYVAL results serve as a powerful endorsement of our regulatory framework. This evaluation assures you that Jersey is a well-regulated and globally respected financial centre, giving you the confidence to endorse it without hesitation.
Client Confidence
Your clients rely on you to guide them through complex regulatory environments. Jersey’s compliance with FATF standards empowers you to communicate these high standards effectively, boosting client confidence. When you share Jersey’s strong regulatory performance, you reassure clients that their financial activities are secure and in compliance with global best practices.
Competitive Advantage
In today’s competitive global market, your clients have numerous options for selecting a jurisdiction for international financial services. Jersey’s top-tier MONEYVAL rating equips you with valuable evidence, allowing you to position the jurisdiction as a leader in regulatory compliance. By showcasing Jersey’s strengths, you can differentiate it from other jurisdictions and present it as a competitive and reliable choice for your clients.
Risk Management
You are responsible for advising clients on managing risk, particularly in cross-border transactions. MONEYVAL’s findings confirm that Jersey operates within a well-regulated environment, minimising exposure to financial crimes like money laundering and terrorist financing. This enables you to confidently recommend Jersey, knowing your clients’ assets will be managed in a safe and secure environment.
Building Long-Term Relationships
Jersey’s dedication to maintaining high standards and continual improvement, as emphasised by the MONEYVAL evaluation, helps you foster long-term trust with your clients. By recommending a jurisdiction that consistently upholds international best practices, you can build strong, lasting relationships, knowing that your advice is based on a foundation of regulatory excellence.
Conclusion: Jersey’s Future as a Leading International Finance Centre
MONEYVAL’s 2023 evaluation enhances confidence in Jersey’s position as a leading International Finance Centre. The report reaffirms Jersey’s strong regulatory framework, long-term commitment to compliance, and readiness to meet evolving global financial challenges. For financial intermediaries, this represents a unique opportunity to recommend Jersey to clients as a secure, reliable, and competitive jurisdiction – one that is committed to maintaining its status as a premier destination for international financial activities.
For further evidence of Jersey’s long-standing history of robust regulation and commitment to transparency, you can find key milestones and dates on our transparency timeline.
