This Is Guernsey

GUERNSEY must not delay bringing in updated anti-money-laundering and counter-terrorist legislation, according to the US State Department.

The Bailiwick is named alongside 56 other jurisdictions in the annual International Narcotics Control Strategy Report. Jersey, the Isle of Man and the UK are also on the list of favourite financial centres for money launderers in 2008.

The report recognises how the island has amended legislation to stay up-to-date with international standards but adds that it should ensure passage of its 2008 legislation, and enact it, as soon as possible.

‘It should integrate civil forfeiture into its legal framework,’ states the report.

‘Guernsey should also work to ensure that the obliged entities uphold their legal obligations and that the regulatory authorities have the tools they need to provide supervisory functions, especially with regard to non-financial businesses and professions.’

Guernsey Financial Services Commission director-general Peter Neville said that while no jurisdiction could say it was free from the risk of money laundering, the island did not have a major problem.

‘Guernsey has an exemplary record in meeting international anti-money-laundering and counter-terrorist-financing standards.

‘As the report states, we have a comprehensive legal framework to counter money laundering and the financing of terrorism. The report also recognises that the IMF assessment conducted in 2002 found that Guernsey had a high level of compliance with the Financial Action Task Force Recommendations.

‘The best way to combat any misconceptions about us not having high standards is to continue to meet international standards as they evolve.’

Mr Neville said the report made it clear that inclusion on the list of major money laundering centres was for the purpose of statutory INCSR reporting.

‘Being on the list does not mean we have problems, but it does mean we have to maintain our guard.

‘It looks to me as though it is the size and sophistication of our finance sector and our close links with the UK – which is also listed – which have led to Guernsey’s inclusion on the list of such countries.

‘As the report says, inclusion on the list may simply be a function of the size of the jurisdiction’s economy and the sophistication of a finance centre makes it vulnerable to money laundering.’

Laws to update the island’s present anti-money laundering and counter-terrorist legislation are with the Privy Council for approval.

Article posted on 28th March, 2008 - 2.29pm