Draft
Proceeds of Crime (Supervisory Bodies) (Amendment of Law) (Jersey)
Regulations 200-
PROPOSALS TO AMEND DEFINITIONS AND SCHEDULE TO THE
PROCEEDS OF CRIME (SUPERVISORY BODIES) (JERSEY) LAW 200-
These draft Regulations amend 2 definitions in the
Proceeds of Crime (Supervisory Bodies) (Jersey) Law 200- (“Supervisory Bodies Law”) and the Schedule to that Law.
The Schedule to the Supervisory Bodies Law is amended
to set out the circumstances in which a fund that is an unregulated fund, or is
which is subject to the Control of Borrowing (Jersey) Order 1958, must register
under the Law. There will not be a requirement for such a fund to register
where, in the case of a trust, its trustee, and, in the case of a limited
partnership, its general partner, is registered under the Financial Services
(Jersey) Law 1998 to carry on fund services business.
Despite this, and in line with international
standards set by the Financial Action Task Force, the definition of “regulated
person” is amended so that it is clear that the Commission may supervise
compliance by such funds with the Money Laundering (Jersey) Order 2008 under
the Supervisory Bodies Law.
As a result of changes made to the regulatory
framework for fund products by the Collective Investment Funds (Amendment
No. 4) (Jersey) Law 2008 – including introduction of a requirement
for unclassified funds to hold certificates – it has been necessary to
amend the definition of “regulated business” to include the business of an
unclassified fund. Explicit reference has also been made in the definition to
the business of a recognized fund. The effect of this is that the Commission
may supervise compliance by such funds with the Money Laundering (Jersey) Order
2008 under the Supervisory Bodies Law.
The Island’s framework to counter money laundering
and the financing of terrorism will be subject to review by the International
Monetary Fund in October 2008.
Financial and manpower implications
These draft Regulations will have no implications for
the financial or manpower resources of the States.
The object of these Regulations is to update 2
definitions in, and the Schedule to, the Proceeds of Crime (Supervisory Bodies)
(Jersey) Law 2008 –
(a) as a
result of the recasting of the treatment of funds under the Collective
Investment Funds (Jersey) Law 1988;
(b) to
ensure, for the purposes of the application of the Money Laundering (Jersey)
Order 2008, the supervision of unregulated funds and of collective investment
funds that are not the subject of public offers; and
(c) to avoid
the need for certain of those funds to register under the Proceeds of Crime (Supervisory
Bodies) (Jersey) Law 2008.
These Regulations also make changes to that Law as a
consequence of the making of the Proceeds of Crime (Amendment of Schedule 2)
(Jersey) Regulations 200-.
Draft
Proceeds of Crime (Supervisory Bodies) (Amendment of Law) (Jersey)
Regulations 200-
Made [date
to be inserted]
Coming
into force [date
to be inserted]
THE STATES, in pursuance of Articles 1(2) and 11(4) of
the Proceeds of Crime (Supervisory Bodies) (Jersey) Law 2008[1], have made the following Regulations –
1 Article 1 amended
In Article 1(1) of the Proceeds of Crime
(Supervisory Bodies) (Jersey) Law 2008[2],
for the definitions “regulated business” and “regulated person” there shall be
substituted the following definitions –
“ ‘regulated business’ means –
(a) the
business of a recognized fund, or of an unclassified fund, within the meaning
of the Collective Investment Funds (Jersey) Law 1988[3],
or
(b) a
Schedule 2 business for which a person must –
(i) be
registered under the Banking Business (Jersey) Law 1991[4],
(ii) hold
a permit under the Collective Investment Funds (Jersey) Law 1988,
(iii) be
registered under the Financial Services (Jersey) Law 1998[5],
or
(iv) be
authorized by a permit under the Insurance Business (Jersey) Law 1996[6];
‘regulated person’ means a person who carries
on –
(a) a
regulated business;
(b) a
business that, by virtue of any of the following provisions, is not a regulated
business –
(i) Article 4
of the Financial Services (Money Service Business (Exemptions)) (Jersey) Order
2007[7],
(ii) Article 5
of the Financial Services (Money Service Business (Exemptions)) (Jersey) Order
2007,
(iii) paragraph 4
of the Schedule to the Financial Services (Trust Company Business (Exemptions
No. 2)) (Jersey) Order 2000[8];
(c) the
business of a scheme or arrangement that –
(i) would
be a collective investment fund (within the meaning of the Collective
Investment Funds (Jersey) Law 1988) except for the fact that the capital, the
collective investment of which is the object or one of the objects of the
scheme or arrangement, is not acquired by means of an offer to the public of
units for subscription, sale or exchange, and
(ii) is a
trust of which the trustee, or a limited partnership of which the general
partner, is registered under the Financial Services (Jersey) Law 1998 to carry
on fund services business; or
(d) the
business of a scheme or arrangement that –
(i) is an
unregulated fund within the meaning of the Collective Investment Funds
(Unregulated Funds) (Jersey) Order 2008[9],
and
(ii) is a
trust of which the trustee, or a limited partnership of which the general
partner, is registered under the Financial Services (Jersey) Law 1998 to carry
on fund services business;”.
2 Amendment of Schedule
(1) For
item 3 of the Schedule to the Proceeds of Crime (Supervisory Bodies)
(Jersey) Law 2008 there shall be substituted the following items –
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“3
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1
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A business
that –
(a) is within paragraph 6 of Part B; and
(b) is not the business of a scheme, or
arrangement, that is a trust of which the trustee, or a limited partnership
of which the general partner, is registered under the Financial Services
(Jersey) Law 1998 to carry on fund services business
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3A
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1
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A business
that –
(a) is within paragraph 3(1)(d) of Part A;
and
(b) is not the business of a scheme, or
arrangement, that is a trust of which the trustee, or a limited partnership
of which the general partner, is registered under the Financial Services
(Jersey) Law 1998 to carry on fund services business”.
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(2) In
item 4 of the Schedule to the Proceeds of Crime (Supervisory Bodies)
(Jersey) Law 2008, for the words “clauses (i) to (iv)” there shall be
substituted the words “clauses (i) to (v)”.
3 Citation and commencement
(1) These
Regulations may be cited as the Proceeds of Crime (Supervisory Bodies) (Amendment
of Law) (Jersey) Regulations 200-.
(2) These
Regulations shall come into force on the same day as Article 11(4) of the Proceeds
of Crime (Supervisory Bodies) (Jersey) Law 2008.
