- Finance firms now face fines of up to £4 million if they breach anti-money-laundering and anti-terrorism rules
- New laws were introduced yesterday
- The Jersey Financial Services Commission can now fine regulated businesses
FINANCE firms in Jersey can now be fined up to £4 million if they breach anti-money-laundering and anti-terrorism rules following the introduction of new laws yesterday.
The Jersey Financial Services Commission, which is responsible for regulating the standards of business in the Island, now has the power to fine regulated businesses millions of pounds for ‘significant and material breaches’ of its codes of practice, including its anti-money-laundering and financing of terrorism handbook.
Breaches could also include the failure to conduct business with integrity, allowing or failing to manage conflicts of interest, failure to act with due skill, care and diligence, failing to meet the standards of the Island’s regulatory framework and failing to keep adequate and orderly records.
The new penalty tariffs are intended not only to serve as a deterrent for regulatory breaches but also to help reduce fee increases for regulated businesses, which the JFSC says are currently carrying the cost of dealing with entities which are non-compliant.
Despite the £4 million fine ceiling, businesses can only be fined up to a limit of either eight or six per cent of their income, depending on the type of the breach they have committed.
JFSC director-general John Harris said: ‘The introduction of financial penalties strengthens the sanctions that the Jersey Financial Services Commission can impose to deal with significant and material breaches of our codes of practice.
‘This will bring us into line with similar powers exercised by counterpart regulators around the world.
‘We will exercise such powers in a reasonable and proportionate manner with the aim of protecting consumers, the reputation of Jersey’s finance industry, and deterring and preventing financial crime.
‘A credible regulator needs appropriate sanctions.’
The JFSC’s new powers were brought into effect by the Financial Services Commission ( Amendment No. 6) (Jersey) Law 2015, which came into force in March, and the Financial Services Commission (Financial Penalties) (Jersey) Order 2015, which sets the financial penalty tariff and came into force yesterday.
The process the JFSC will use to deal with financial penalty cases can be found by searching ‘regulatory sanctions’ on their website.
