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Consultation paper - proposals to affect Jersey trusts and foundations

25 September 2018

The Jersey Financial Crime Strategy Group of the Government of Jersey has published a consultation paper entitled the "Implementation of the 2012 FATF Recommendations on Anti-Money Laundering and Countering the Financing of Terrorism - proposed revisions to Jersey's AML/CFT legal framework". The consultation paper considers a number of the recommendations made by FATF (the Financial Action Task Force) in 2012 and whether the current framework for AML/CFT (anti-money laundering and countering the financing of terrorism) should be revised to meet these recommendations.

A number of the proposals affect trusts and foundations, and if implemented, would have a significant impact. Those proposals include:

  • The regulations of a foundation (or at least parts of them) will be required to be filed with the Companies Registry and therefore be made publicly available.

  • The Jersey government will review the requirement that anyone acting as a trustee of an express trust governed by Jersey law must hold requisite information in relation to its beneficial owners - with a particular focus on non-resident trustees of Jersey trusts.

  • There is currently no explicit requirement in legislation to require trustees to hold basic information on regulated agents of, and service providers to, a trust, including investment advisors or managers, accountants and tax advisors. It is suggested that this requirement should be introduced into the Trusts (Jersey) Law 1984 ("TJL") and associated regulatory codes of practice or, alternatively, into the Proceeds of Crime (Jersey) Law 1999 ("POCL") and/or subordinate legislation.

  • The authorities are considering whether to amend the TJL or the POCL so that trustees are not prevented by law or enforceable means from providing competent authorities with any information relating to trusts or prevented from providing financial institutions and Designated Non-Financial Businesses and Professions with information on the beneficial ownership and the assets of the trust to be held or managed under the terms of the business relationship.

  • The current regime under the Control of Borrowing (Jersey) Order 1958 (also known as COBO) will be replaced with a new registry regime which consolidates basic information requirements, beneficial ownership and retention of records requirements. It is proposed that someone, either a natural person or a trust and company service provider ("TCSP"), will be nominated as being responsible for keeping the register up to date in respect of legal entities and that the name of such person or TCSP should be held by the Companies Registry.

The consultation is due to close on 30 September 2018. If you have any questions or would like Bedell Cristin to assist with the submission of any response, please do not hesitate to contact us.

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Location: Jersey

Related Service: International Private Client