Should charities register with JFSC?

08 January 2008

The Council of Ministers has endorsed a programme of legislation and other changes to ensure that Jersey meets international standards when the IMF conducts its review later this year. The Council of Ministers has asked the Jersey Financial Services Commission (JFSC) to take forward a number of agreed measures. Among these is the oversight of non-profit organisations (NPOs) to ensure that they are not used to fund terrorism.  There is evidence that this has occurred in other jurisdictions and this new requirement has been included in the revised international standards.

The proposals in the consultation paper have been made on the recommendation of the Anti-Money Laundering/Countering the Financing of Terrorism Strategy Group (AML/CFT Strategy Group) and would bring Jersey into line with current international standards in this area.

The public are invited to comment on proposals to introduce legislation that would:

• require NPOs to register with the JFSC; and
• provide a basis for the Commission to oversee the activities of NPOs – to help determine if a NPO is assisting or being used to assist the funding of terrorism. 

Once they have registered, the proposals should have little effect on how the majority of NPOs established or administered in Jersey operate and should not disrupt or discourage the good work that they undertake.

It is important to note that the proposals set out in the consultation paper are solely concerned with combating terrorist activities.  They do not extend to the general regulation of charities.

Martin De Forest-Brown, Director of International Finance, said “The introduction of this law is necessary to ensure that Jersey continues to be recognized as a leading international finance centre. During 2008, the IMF will be assessing Jersey’s compliance with international standards, which now include a requirement for the oversight of charities and non-profit organizations. The JFSC has been asked to apply these new regulations in such a way as to meet the standard required with the minimum disruption for charities.”

The consultation paper can be viewed on the States website at www.gov.je/ChiefMinister/PublicConsultations/

Copies of the consultation document can be obtained from the States Bookshop, the Customer Services Centre at Cyril Le Marquand House and from the Jersey Library.

The public and, in particular, NPOs affected by the proposed changes are invited to submit responses to the consultation paper by 8 February 2008.

 

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 Notes to Editors:

 For further information, please contact:

 Martin De Forest-Brown, Director of International Finance, Chief Minister’s Department
Tel:  440420    Email: cmdept@gov.je

Technical queries on the content of the consultation paper should be addressed to:

Andrew Le Brun, AML/CFT Strategy Group Secretariat, c/o Jersey Financial Services Commission
Tel:  822065    Email: a.lebrun@jerseyfsc.org

1. This news release has been issued on behalf of the AML/CFT Strategy Group. The AML/CFT Strategy Group was established to coordinate Jersey’s response to the threat of financial crime and terrorism. It has also assisted with the preparation for this year’s review of Jersey’s performance as a financial centre that will be conducted by the International Monetary Fund (IMF).

2.   The AML/CFT Strategy Group is chaired by Bill Ogley, Chief Executive to the Council of Ministers, and includes officers from the following government departments and other Island agencies: Chief Minister’s Department, Economic Development Department, Law Officers’ Department, Joint Financial Crimes Unit, Jersey Financial Services Commission and Shadow Gambling Commission.

3. The purpose of the AML/CFT Strategy Group is to provide a forum for the Island agencies represented on the group to liaise, discuss and develop coordinated strategies and policies to enhance Jersey’s capability to prevent and detect financial crime and terrorist financing.

4. The Jersey Financial Services Commission provides the secretariat for the AML/CFT Strategy Group.

5. The IMF is visiting Jersey in October 2008.   The purpose of the visit is to assess the Island against international AML/CFT standards, as well as against international standards for the banking, insurance and securities sectors.

6. The proposals set out in the consultation paper are intended to implement Special Recommendation VIII – issued by the Financial Action Task Force. 

7. A NPO is a person or body that primarily engages in raising or disbursing funds for purposes such as charitable, religious, cultural, educational, social or fraternal purposes, or for the carrying out of other types of “good works”.

The proposals set out in this consultation paper will directly affect all NPOs that are established in or administered in or from Jersey.   This includes:

1. Charitable organisations, such as Jersey Hospice Care and Headway
2. Religious organisations such as churches
3. Cultural organisations, such as the Jersey Arts Centre and the Jersey Eisteddfod
4. Educational organisations, such as ACET and Beaulieu Convent School Trust
5. Social bodies, such as sports and youth clubs
6. Fraternal organisations, such as the Good Companions Club and the Jersey Roundtable
7. Others carrying out other types of “good works”, eg Durrell Wildlife Conservation Trust and Jersey Fairtrade Island Group.