Guernsey
Last Updated: 25/09/2008 (Anti-money laundering legislation not applicable to lawyers)
CENTRAL AUTHORITY FOR REPORTING
Guernsey Financial Intelligence Service (FIS) is responsible for receiving, analysing and disseminating suspicious activity reports from financial services businesses under local anti money laundering legislation. The FIS is staffed by Police and Customs and Immigration Service Officers.
ARE LAWYERS COVERED BY MONEY LAUNDERING LEGISLATION?
Lawyers are subject to the existing disclosure laws and will be shortly governed by new regulations (The Criminal Justice (Proceeds of Crime)(Legal Professionals, Accountants and Estate Agents)(Bailiwick of Guernsey) Regulations 2008) that will add lawyers to the regulated anti money laundering reporting regime. Lawyers will have until 7 November 2008 to comply with the new rules and regulations as a whole.
NAME LAWS REGARDING ANTI-MONEY LAUNDERING PROCEDURES
Money Laundering (Disclosure of Information) (Guernsey) 1995.
The Criminal Justice (Proceeds of Crime) (Bailiwick of Guernsey) Law 1999, as amended.
Drug Trafficking(Bailiwick of Guernsey) Law 2000, as amended.
The Terrorism (United Nations Measures)(Channel Islands) Order 2001
The Al-Qaida and Taliban (United Nations Measures)(Channel Islands) Order 2002.
(Bailiwick of Guernsey) Regulations 2002.
Terrorism and Crime (Bailiwick of Guernsey) Law 2002, as amended.
Transfer of Funds (Guernsey) Ordinance 2007.
Disclosure (Bailiwick of Guernsey) Law 2007.
The Criminal Justice (Proceeds of Crime)(Financial Services Businesses)(Bailiwick of Guernsey) Regulations 2007.
The Criminal Justice (Proceeds of Crime)(Legal Professionals, Accountants and Estate Agents)(Bailiwick of Guernsey) Regulations 2008.
Anti-Money Laundering Standards for Existing Customers.
Links to copies of these statutory provisions can be found on www.gfsc.gg.
IN ADDITION TO THESE LAWS, IS THERE ANY MONEY LAUNDERING GUIDANCE FOR LAWYERS CURRENTLY IN PLACE?
“Handbook for Legal Professionals, Accountants and Estate Agents on Countering Financial Crime and Terrorist Financing” published by the Guernsey Financial Services Commission. The Handbook sets out a mixture of mandatory rules and general guidance and law firms have until 7 November 2008 to comply with the rules and guidance.
A copy of the Handbook can be downloaded at http://www.gfsc.gg/content.asp?pageID=527.
UNDER WHAT CIRCUMSTANCES IS A LAWYER UNDER THE OBLIGATION TO REPORT?
Under Section 3 of the Disclosure (Bailiwick of Guernsey) Law 2007, “anyone of any age who, during the course of any business, suspects or reasonably should have suspected that another person has been engaged in money laundering regardless of whether he himself is asked to participate in a money laundering transaction must report his suspicion . . .”
Suspicious transaction reports must be sent to the FIS.
LAWYER RESPONSIBILITY/LIABILITY
Guernsey’s money laundering legislation provides that reports made to the FIS in accordance with the legislation shall not be treated as a breach of any restriction upon disclosure imposed by any statute or contract or otherwise, and shall not make the person reporting the suspicion liable in any way. (Section 3(10) Disclosure (Bailiwick of Guernsey) Law 2007). A defence to a failure to disclose is provided if information comes to a legal adviser in privileged circumstances.
CLIENTS IDENTIFICATION AND VERIFICATION
The new Handbook for Legal Professionals in combination with the Criminal Justice (Proceeds of Crime)(Legal Professionals, Accountants and Estate Agents)(Bailiwick of Guernsey) Regulations 2008 sets out the need to have in place “policies, procedures and controls which provide scope to identify and verify identity to a depth appropriate to the assessed risk of the business relationship and occasional transaction”. There is prescribed “relevant identification data” for individuals, trusts and legal bodies together with provision for certification and introduction certificates from introducers/referrers in approved jurisdictions.
LAWYERS PROSECUTED FOR MONEY LAUNDERING OFFENCES
None.
Information provided by:
Alasdair Davidson, MCIArb
Barrister at Law (England & Wales)
Attorney at Law (Turks & Caicos)
Babbé, PO Box 69, 18-20 Smith Street, St Peter Port, Guernsey GY1 1RX Channel Islands
t. 01481 713371
e. a.davidson@babbelegal.com
