Jersey ‘third easiest jurisdiction’ in world for finance compliance
DESPITE local complaints about red tape, Jersey has just been named the third easiest jurisdiction in the world as far as financial and tax compliance is concerned.
Only arch-rivals the British Virgin Islands and the Cayman Islands were rated less complex than Jersey when it comes to compliance, according to TMF’s Financial Complexity Index 2018.
The international provider of global business and compliance services ranked Jersey number 92 in its index out of a total 94 jurisdictions around the world.
The Cayman Islands was the least complex at 94, followed by BVI at 93.
In fact, Jersey is the least complex financial jurisdiction in the entire Europe and Middle East section of the index.
It was one ahead of Hong Kong globally, and seven places less complex than Singapore.
On the other end of the financial complexity scale, China at number one is the most complex jurisdiction in the world, followed by Brazil, Turkey, Italy and Argentina. The UK was 72 in the list.
Managing director of TMF in Jersey Cengiz Somay said that Jersey has a long-standing reputation as an easy place to do business.
‘We are delighted to see that once again, this is reflected in its TMF Group Financial Complexity Index ranking,’ he said.
‘Local laws do require that accounting records are maintained and annual accounts prepared and approved by the directors/shareholders or trustees. However, the laws are relatively relaxed regarding the format and content of the accounts themselves.
‘Likewise, there is generally no audit requirement under local law for private companies and trusts – only public companies require an audit. What’s more, there are no expected changes to the relevant parts of Jersey company and trust law impacting accounting requirements and complexity.’
TMF’s head of Benelux and western Europe, Huib de Kanter, said that despite the relative simplicity of compliance in Jersey, there were very high standards.
‘Jersey may be ranked among the world’s least complex jurisdictions for financial compliance, but that shouldn’t make those looking to do business in this market over-confident,’ he said.
‘Jersey has a robust legal system and high regulatory standards, with clear penalties for infractions.’
Mr de Kanter said that when it comes to cross-border business success, knowing and understanding the local requirements for financial compliance can prove vital.
TMF has 7,000 in-country experts in over 80 jurisdictions around the world, including Jersey.