Volkswacht Bodensee - Council of Europe urges Jersey to up anti-money laundering efforts

A British Crown dependency that manages its internal affairs autonomously, Jersey is a low tax jurisdiction that has an outsized offshore financial services sector.

While getting caught up in the 2017 Paradise Papers leak of confidential banking documents that showed companies like Apple and Nike as well as celebrities such as Formula One champion Lewis Hamilton used Jersey to lower its tax bills, the island off the coast of France has avoided being put on official lists of tax and money laundering havens.

Moneyval, the Council of Europe body that evaluates government efforts to combat money laundering and terrorism financing, does not have its own list but it is a partner to the Financial Action Task Force, a global body that does establish a list of countries with deficient systems to combat financial crime.

Moneyval said that Jersey "significantly strengthened its legal framework" and now has "most elements of an effective" anti-money laundering and counter-terrorist financing framework.

But it also emphasised the need for increased use of financial intelligence methods "to develop evidence and trace proceeds" of money laundering and terrorist financing.

The modest number of prosecutions for money laundering calls for a more "proactive approach" by authorities, the report said.

It added supervision of targeted financial sanctions requirements and risk-based oversight of the non-profit sector could be improved.

Moneyval assesses 33 countries and territories and makes recommendations to improve their systems for combating money laundering, terrorist financing, and the financing of the proliferation of weapons of mass destruction.

The next evaluation of Jersey will take place in 2026.

R.Kloeti--VB