JERSEY has “taken steps” to combat money laundering, according to a new assessment from a European watchdog.
A report published today by Council of Europe’s anti-money laundering body Moneyval evaluated the Island’s efforts to align with international standards following a two-year assessment.
Moneyval’s review “commended” Jersey for strengthening its legal and regulatory framework to combat money laundering, financing of terrorism, and financing of proliferation.
However, it said that the Island could improve when it came to supervision, prevention, financial intelligence, and investigation and prosecution.
The assessment, based on international Financial Action Task Force standards, found Jersey has “most elements” of an effective anti-money laundering and counter-terrorist financing system in place.
Specifically, the watchdog praised Jersey’s understanding of these risks and its implementation of mitigation strategies.
According to the report, Jersey demonstrated effective mechanisms for implementing targeted financial sanctions related to terrorism and proliferation financing.
The report also highlighted the sector’s high-quality risk assessments and strong national coordination between agencies and the private sector.
Jersey’s Financial Intelligence Unit was also recognised for improved operational independence and resources.
However, the report called for improvements in areas such as “practical application”.
While acknowledging the Island’s efforts to investigate money laundering cases and pursue proceeds of crime, Moneyval recommended a more “proactive approach” to prosecutions.
It also recommended strengthening processes for criminality checks in the private sector.
The report encouraged Jersey authorities to continue increasing their outreach to foreign counterparts.
In a statement, Assistant Treasury Minister Ian Gorst said: “This report demonstrates Jersey’s ongoing commitment to complying with international standards.
“I hope that it gives the industry and investors confidence in the future of Jersey as a responsible international finance centre.”
He added: “We can use the report as a foundation on which to build sustainable and reliable growth by using it to show that Jersey takes effective action to prevent the channeling of illegal funds, and enable honest and transparent economic growth around the world.”
Jersey is expected to report back to Moneyval in December 2026.
