Regulation

Jersey’s regulatory environment is constantly evolving to protect its key stakeholders and to maintain the jurisdiction’s reputation as an international finance centre of excellence.

One of Jersey’s key strengths is the ability of the government, the Jersey Financial Services Commission (JFSC – the regulator) and members of the financial services industry to work together, to innovate and address issues both collaboratively and expediently.

The rigorous systems and protocols in place contribute to Jersey’s positive reputation as a world-leading international finance centre (IFC).

As a forward-thinking jurisdiction, Jersey continues to adhere to the highest regulatory standards. 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 financial crime). 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.

Standards of financial services regulation and techniques for defeating financial fraud or the laundering of criminal proceeds are constantly developing. The JFSC is willing and able to engage in discussions on international standards. It does so through membership of, or in association with, the following international organisations:

The International Organisation of Securities (IOSCO)

The International Association of Insurance Supervisors (IAIS)  and the Group of International Insurance Centre Supervisors (GIICS)

The Group of International Finance Centre Supervisors (GIFCS)

OECD – through the United Kingdom’s membership, and official declaration of the Island’s association dated 19 July 1990

The Council of Europe’s Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism (MONEYVAL)

Through its membership of GIFCS above, the JFSC also works with:-

The Basel Committee on Banking Supervision (BIS)

The Financial Action Task Force (FATF) on money laundering, terrorist and proliferation financing.

To ensure the right tax is being paid, strong regulation is essential. Our regulatory framework is one of the strongest in the world, and it is designed to bring clarity and transparency to the world of finance. Jersey financial service providers are required to make certain they know where all the money in Jersey has come from, and exactly where it is going. This information is then shared with the relevant authorities and governments, working together, to ensure the tax due is being paid. This constant communication is vital in fighting financial crime and corruption.

See the Transparency Timeline for more information on key transparency initiatives.

Jersey has played a role in the FATF over a number of years through the GIFCS, has been a member of MONEYVAL since 2012 and has been consistently engaged in the worldwide fight against economic and financial crime in all of its forms.

Our approach has been internationally recognised. The IMF has assessed Jersey’s compliance with Anti-Money Laundering (AML)/ Combatting the Financing of Terrorism (CFT) and Countering Proliferation Financing (CPF) standards, concluding that Jersey’s legal system and enforcement were among the strongest in the world.

Jersey has been recognised as one of the leading jurisdictions worldwide for compliance with FATF standards during its most recent MONEYVAL Mutual Evaluation Report (MER). Jersey was compliant or largely compliant with 39 out of 40 FATF Recommendations, a level of technical compliance achieved by only a few jurisdictions worldwide.