Cannabis investments in Guernsey
29 July 2021
With the cultivation and production of cannabis now lawful in many countries and the global expansion of the cannabis industry, Guernsey has helpfully clarified the position in relation to its anti-money laundering regime.
The Guernsey Policy and Resources Committee stated in an Information Notice dated 10 June 2020 that proceeds derived from the cultivation and production of cannabis lawfully in another jurisdiction would not satisfy the dual criminality test – the test of requiring an offence to have been committed in both jurisdictions. As a result, such proceeds will not constitute the proceeds of crime for the purposes of Guernsey's anti-money laundering legislation. It is important to note that Guernsey's anti-money legislation will have full effect where cannabis related activities are not lawful in the other jurisdiction.
The Information Notice points out that these statements have not been subjected to a court ruling and should not be treated as legal advice. However, this is useful guidance as to the how the anti-money laundering legislation would operate and Guernsey's policy approach will be of assistance to promoters looking to structure investments in cannabis and cannabinoid related products.
If you would like any further information regarding cannabis investment in Guernsey, please get in touch with Dylan Latimer or your usual Bedell Cristin contact.