By Baron Laudermilk
The Guernsey Financial Services Commission recently announced that it is in the process of revising the rules and regulations over anti-money laundering (AML) standards for financial institutions and for businesses such as law firms, accountants, and estate agents. These important changes will strengthen the island reputation as it continues to apply rules and regulations that are on par with international standards.
According to the latest updates, there are four main changes that we are expected to see from the Commission. There will be an adoption of a more sophisticated approach for firms in profiling the risk of their clients. They will have to take into account local and international developments in best practices from around the world, including Switzerland, London and New York.
The second change expected is the removal of general insurance from the AML rules and regulations. The Commission considers that the risk of insurance being used for money laundering is not high; therefore firms advising on general insurance should not be required to meet the meticulous AML regulations and rules for those specific areas. This eases the burdens on these companies that are not dealing with low risk clients.
The third and very important change expected to see is a revision in the ikely to benefit rule. Besides high risk situations, there will be more flexibility for firms in the timing of verification of identity of beneficiaries of trust falling within the rules. This gives firms more leeway in confirming the identities of their beneficiaries.
The final change will be providing guidance for firms in regarding bribery and corruption, which is an increasingly international concern as crimes in their own right as well as the motivations behind the money laundering continue to be prevalent.
The Commission said that the revisions would be issued after New Year, and that the companies would be allowed a transitional period to amend their own policies, procedures and controls before the changes come into affect.
The Director of Policy and International Affairs, Richard Walker, said, t is crucial that Guernsey effort in preventing the products and services we offer from being used by money launderers is focused as much as possible, and industry efforts put to the best effect possible. The current AML framework has been in place for several years. The experience of both the Commission and industry with it is enabling us to take the positive steps of revising the framework and enhancing its focus. /p>
The anti money-laundry rules will actually strengthen the reputation of Guernsey international financial offshore center according to some analysts, as the island continues to strengthen its rules and put them inline with international standards. The new changes simultaneously ease the burdens of companies who are not dealing with high risk AML, and it also strengthens rules that need to be in place to ensure that corruption and bribery are lowered.
