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Money Laundering and Weapons Development (Directions) (Iran) (Jersey) Order 2012

A formal published “Ministerial Decision” is required as a record of the decision of a Minister (or an Assistant Minister where they have delegated authority) as they exercise their responsibilities and powers.

Ministers are elected by the States Assembly and have legal responsibilities and powers as “corporation sole” under the States of Jersey Law 2005 by virtue of their office and in their areas of responsibility, including entering into agreements, and under any legislation conferring on them powers.

An accurate record of “Ministerial Decisions” is vital to effective governance, including:

  • demonstrating that good governance, and clear lines of accountability and authority, are in place around decisions-making – including the reasons and basis on which a decision is made, and the action required to implement a decision

  • providing a record of decisions and actions that will be available for examination by States Members, and Panels and Committees of the States Assembly; the public, organisations, and the media; and as a historical record and point of reference for the conduct of public affairs

Ministers are individually accountable to the States Assembly, including for the actions of the departments and agencies which discharge their responsibilities.

The Freedom of Information Law (Jersey) Law 2011 is used as a guide when determining what information is be published. While there is a presumption toward publication to support of transparency and accountability, detailed information may not be published if, for example, it would constitute a breach of data protection, or disclosure would prejudice commercial interest.

A decision made 19 January 2012:

Decision Reference: MD-C-2012-0009

Decision Summary Title :

Money Laundering and Weapons Development (Directions) (Iran) (Jersey) Order 2012

 

Date of Decision Summary:

16th Jan 2012

 

 

ref. 25/32/3

Decision Summary Author:

 

International Relations

Decision Summary:

Public or Exempt?

(State clauses from Code of Practice booklet)

Public

Type of Report:

Oral or Written?

Written

Person Giving

Oral Report:

 N/A

Written Report

Title :

Money Laundering and Weapons Development (Directions) (Iran) (Jersey) Order 2012

Date of Written Report:

16 Jan 2012

Written Report Author:

International Relations

Written Report :

Public or Exempt?

(State clauses from Code of Practice booklet)

Public

Subject:  Money Laundering and Weapons Development (Directions) (Iran) (Jersey) Order 2012

Decision(s):  The Chief Minister –

(i)                  in pursuance of Article 6 of the Money Laundering and Weapons Development (Directions) (Jersey) Law 2012, and after consultation with the Jersey Financial Services Commission, made the Money Laundering and Weapons Development (Directions) (Iran) (Jersey) Order 2012; and

(ii)                in pursuance of Article 9 of the Money Laundering and Weapons Development (Directions) (Jersey) Law 2012, decided to grant licenses to exempt certain transactions and business relationships that are subject to the provisions of the Order.

Reason(s) for Decision:

This action arises from the recent calls from the Financial Action Task Force (FATF) for countries to apply effective counter-measures to protect their financial sectors from money laundering and financing of terrorism risks emanating from Iran. The FATF (the global standard setting body for anti-money laundering and combating the financing of terrorism) renewed these calls with urgency on 28th October 2011 and noted its particular and exceptional concern about Iran’s failure to address the risk of terrorist financing and the serious threat this poses to the integrity of the international financial system.

In light of these risks to Jersey’s interests and the need to take urgent action, the Minister for Treasury and Resources made an interim direction under Article 23C of the Money Laundering (Jersey) Order 2008, to require the financial services sector to cease all business relationships and transactions with Iranian banks and their branches and subsidiaries, including the Central Bank of Iran.  These actions were taken in coordination with other countries, including a direct request from HM Treasury which strongly encouraged Jersey to take action. 

The proposed new measures made under the Money Laundering and Weapons Development (Directions) (Jersey) Law 2012, (“the Law”) will protect the financial services sector in Jersey from the risk of unwittingly being used to facilitate money laundering activities and financing of terrorism, and signals to Iran and the international community that Jersey considers this risk to be significant.

Once this proposed Order is made, the intention is to revoke the interim direction which it will replace.  

In addition, the Chief Minister is asked to approve certain licences which may be granted under Article 9 of the Law.  These measures exempt transactions with designated persons for certain purposes and in certain circumstances:

  • Humanitarian activities, medicine, foodstuffs and healthcare;
  • Personal remittances under € 40,000 which are not in the course of business;
  • Provision of insurance to Iranian persons, entities or bodies which is exempt under Regulation (EU) No.961/2010;
  • Holding of asset-frozen Iranian banks’ accounts; activities which would otherwise be exempt under Article 20 of Regulation (EU) No.961/2010 (asset freezing exemptions); and activities of a relevant person which are currently licensed under the asset-freezing regime;
  • Relevant persons holding accounts in the name of designated persons.

Resource Implications:  There are no resource implications arising from this decision.

Action required:  The Chief Minister is requested to –

  • approve and sign the Money Laundering and Weapons Development (Directions) (Iran) (Jersey) Order 2012 as attached; and
  • approve and grant the licences as attached.

The Chief Minister’s Department should –

(a)   forward a copy of this decision to the States Greffe and request that notice of the Order is published; and

(b)   take other steps as appropriate to bring notice of the direction and licences to the attention of relevant persons.

Signature:

 

Position: 

 

Senator I.J. Gorst, Chief Minister

Date Signed:

 

Date of Decision (If different from Date Signed):

 

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