Jersey charities are being bogged down by “laws, regulations and guidance notes” and the “practices of banks”, according to a local think tank.
Policy Centre Jersey senior adviser Sir Mark Boleat said opening a bank account “has become more difficult for reasons which are understandable, but for charities the problems are magnified by regulatory requirements”.
He highlighted the “extraordinary” rules for non-profit organisations (NPOs), particularly the threshold for becoming a “Prescribed NPO” if more than £1,000 is raised or disbursed outside certain jurisdictions. “It is irrational and difficult to monitor let alone enforce,” he said, noting that “many charities will exceed the £1,000 figure without knowing it”.
Sir Mark further criticised Jersey’s stricter approach to politically exposed persons (PEPs), calling it “gold plating”.
He said: “In Jersey there are literally hundreds of people who are now classified as domestic PEPs, but for what purpose? There is no evidence that such people pose a risk of being involved in terrorist financing or financial crime.”
He warned that the current system means charities risk being “governed to tick regulatory boxes” rather than focusing on their purpose.
“What is needed,” he said, “is to remove the requirement on most charities to register as NPOs, narrow the definition for being a ‘prescribed NPO’, amend the Money Laundering Order to bring the definition of a PEP in line with the UK definition and remove the gold-plating from the JSFC’s guidance.”
The JFSC did not wish to comment.
- More in today’s Big Read on pages 12 and 13 of today’s JEP.
