AML/CFT

The Island introduced its first anti-money laundering legislation in 1987, the Drug Trafficking Offences Act. In due course this was followed by other legislation such as the Prevention of Terrorism Act 1990, the Criminal Justice Act 1990 and the Criminal Justice Act 1991.

Copies of primary and secondary legislation can be found on the Attorney General's Chambers legislation website.

The introduction of the Criminal Justice (Money Laundering Offences) Act 1998 extended the definition of money laundering to cover all serious crimes, leading to its informal title of "the all crimes legislation". In addition, it led to the creation of the Anti-Money Laundering Code 1998, which came into force on 1st December 1998. The Anti Money Laundering Code 1998 was replaced by the Criminal Justice (Money Laundering) Code 2007 in September 2007, subsequently replaced by the Criminal Justice (Money Laundering) Code 2008 which came into effect on the 18 December 2008. On 1 September 2010 this was superseded by the Proceeds of Crime (Money Laundering) Code 2010. This was supplemented by the Prevention of Terrorist Financing Code 2011 which came into effect on 1 September 2011. On 1 May 2013 the Money Laundering and Terrorist Financing Code came into effect which broadly mirrored the requirements of the previous Codes but combined the AML and CFT provisions into one piece of legislation. It should be noted that the Money Laundering and Terrorist Financing Code 2013 was amended by the Money Laundering and Terrorist Financing (Amendment) Code 2013 on 1 July 2013.

On 1 April 2015 the Anti-Money Laundering and Countering the Financing of Terrorism Code 2015 (“the Code”) came into effect.  This Code was amended in 2018 and the Anti-Money Laundering and Countering the Financing of Terrorism (Amendment) Code 2018 came into effect on 14 September 2018.  The amendments to the legislation included:

    • the introduction of requirements to establish, maintain and operate procedures in relation to sanctions screening;
    • the introduction of the need to consider whether the relevant person has met the customer in the course of business when conducting business and customer risk assessments;
    • the introduction of Paragraph 10A which places requirements on a relevant person to undertake certain considerations where an introducer is assisting with the customer due diligence process;
    • expansion of the requirements of Paragraph 21 to address recommended actions from MONEYVAL; and,
    • amendment to Paragraph 23 to ensure that it only deals with instances where a relevant person places reliance on an eligible introducer.

In addition Schedule 4 to the Proceeds of Crime Act 2008 was extended to cover:

  • tax advisors;
  • payroll service providers;
  • controlled machines;
  • specified non-profit organisations; and
  • convertible virtual currencies.