MONEYVAL Commends Jersey's AML Efforts, Urges Greater Focus on Practical Enforcement

MONEYVAL has given Jersey a broadly positive review in its latest in-depth assessment, indicating that the British Crown Dependency has significantly bolstered its legal and regulatory framework to combat money laundering. However, the organization noted that while Jersey now has a strong anti-money laundering (AML) framework, the island must emphasize practical AML steps to improve further.

The report specifically pointed out areas needing enhancement, such as enforcement in investigations and prosecutions. The findings are particularly noteworthy as Jersey has been historically viewed as one of the world's leading hubs for money laundering and tax avoidance. The positive review will likely ease concerns that Jersey might follow Monaco in being placed on the Financial Action Task Force (FATF) grey list. Monaco received this classification in June after a scathing MONEYVAL assessment earlier in the year.

Concerns had arisen about a similar outcome for Jersey if the MONEYVAL review had been unfavorable. While MONEYVAL highlighted several concerns around practical AML enforcement, the review was more favorable compared to the one issued for Monaco. The MONEYVAL report, a comprehensive assessment by the Council of Europe’s AML body, evaluated Jersey’s compliance with the 40 recommendations set by the FATF. Jurisdictions can receive ratings of non-compliant, partially compliant, largely compliant, or compliant. MONEYVAL found that Jersey was compliant or largely compliant with 39 out of 40 FATF recommendations.

The only area where Jersey was rated as ‘Partially Compliant’ was with Recommendation 18, which pertains to how financial institutions implement AML controls across their subsidiaries and overseas operations. Jersey officials stated that the lower rating will improve once the planned reforms are implemented.

MONEYVAL found that Jersey has achieved “a high level of effectiveness” in understanding money laundering and terrorist financing risks and has implemented “adequate AML/CFT policies and strategies to mitigate them.” The report added that the operational independence and resources of Jersey’s Financial Intelligence Unit (FIU) “have significantly improved” since MONEYVAL’s last assessment.

However, the report also noted, “While money laundering cases are routinely investigated and proceeds of crime are pursued as a policy objective, the modest number of money laundering prosecutions call for a more proactive approach by the competent authorities.” MONEYVAL further stated that Jersey’s approach to ensuring compliance with AML/CFT obligations “greatly relies on remedial actions, with a modest imposition of sanctions, insufficiently in line with the number and types of breaches detected.”

Despite these critiques, MONEYVAL acknowledged that Jersey authorities demonstrated “a good understanding” of how legal persons and arrangements can be misused for money laundering purposes. The report stated, “Jersey ensures the availability of accurate beneficial ownership information of legal persons and arrangements through a fully populated registry, as well as conducting comprehensive risk assessment and vetting processes.”

Jersey is expected to report back to MONEYVAL under its regular follow-up reporting process in December 2026.

By fLEXI tEAM