Guernsey has received a largely positive assessment from Moneyval, the Council of Europe’s Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) body. The island was praised for its robust legal framework and effective supervision. However, it was urged to enhance its enforcement efforts to more effectively combat financial crime.
The 5th Round Moneyval Mutual Evaluation Report found that Guernsey demonstrated a high level of technical compliance with global AML/CTF standards. It was particularly commended for its regulatory and supervisory framework, which ensures that financial institutions adhere to stringent AML measures. The Guernsey Financial Services Commission (GFSC) welcomed the findings, noting that the report reflects the island’s commitment to maintaining a well-regulated financial sector.
Strengths in Supervision and Regulatory Framework
Guernsey’s regulatory measures were found to be compliant or largely compliant with all 40 Financial Action Task Force (FATF) technical compliance recommendations, reinforcing its reputation as a compliant and well-regulated financial centre. The evaluation noted that Guernsey has taken significant steps to prevent money laundering and terrorist financing, particularly in its supervisory framework and regulatory controls. It is also one of only three jurisdictions to have a high effectiveness rating for the implementation of sanctions.
Stronger Enforcement Required
Despite these strengths, Moneyval urged Guernsey to improve its enforcement of AML regulations, particularly in investigating and prosecuting financial crime cases. While the island has effective policies, Moneyval found that actual convictions need to be more consistent to deter illicit activity effectively. The Island was also urged to improve the quality and relevance of suspicious activity reporting.
Guernsey's Response to Report
The Guernsey government and GFSC have expressed satisfaction with the overall findings, describing the report as an endorsement of the island’s regulatory framework. However, they acknowledged the recommendations and committed to enhancing enforcement efforts to ensure continued compliance with international AML standards.
Conclusion
With this largely positive evaluation, Guernsey remains well-positioned as a reputable international financial centre (IFC). Moneyval will continue to monitor progress to ensure ongoing compliance with international AML standards.
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