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Guernsey Financial Services Commission’s Handbook on Money Laundering and Terrorist Financing

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The Guernsey Financial Services Commission’s Handbook provides guidance on the regulations and rules for financial services businesses in Guernsey. The following is a summary of key points related to money laundering and terrorist financing.

Regulation 12(a) - Appointment of Money Laundering Reporting Officer (MLRO)

Requirements for MLRO

  • A financial services business must appoint an MLRO who meets specific criteria, including:
    • Being a natural person
    • Employed by the business
    • Resident in Guernsey
    • Having sufficient resources to perform duties
  • The MLRO is responsible for reporting suspicious transactions to the Financial Intelligence Service (FIS).

Regulation 12(b) - Nominated Officer

Requirements for Nominated Officer

  • A financial services business must nominate another person to receive disclosures in the absence of the MLRO.
  • The nominated officer must be:
    • Of at least management level
    • Appropriately qualified

Regulation 3 - Risk Assessment and Mitigation

Key Requirements

  • A financial services business must carry out a suitable and sufficient money laundering and terrorist financing business risk assessment, which is specific to the business.
  • The business risk assessment must be regularly reviewed, at a minimum annually, and updated as necessary.
  • Before establishing a business relationship or carrying out an occasional transaction, a risk assessment must be undertaken.
  • Policies, procedures, and controls on forestalling, preventing, and detecting money laundering and terrorist financing must be:
    • Appropriate
    • Effective
    • Having regard to the assessed risk

Key Objectives

Responsibilities of Board and Senior Management

  • The Board and senior management of a financial services business are responsible for managing the business effectively and evaluating potential risks.
  • A financial services business should take a proportionate risk-based approach to the risk of its products and services being used for money laundering and terrorist financing.