MONEYVAL Report Bolsters Jersey’s Reputation Against Illicit Finance Claims, Says Minister

Ian Gorst, Jersey’s Minister for External Relations and Financial Services, asserts that the latest MONEYVAL evaluation should dispel international analysts' claims that the island is an illicit finance hub. He emphasized, "It’s an independent, peer-reviewed assessment which reinforces the messages that we have been delivering to investors for a long time. In that regard, it must be useful in reinforcing the message that Jersey isn’t used in a way that some of our detractors sometimes indicate that they think it is."

MONEYVAL, the Council of Europe’s anti-money laundering (AML) body, delivered a broadly positive review of Jersey in its latest in-depth evaluation. The assessment measured Jersey’s compliance with the 40 recommendations set by the Financial Action Task Force (FATF), finding that Jersey was either fully or largely compliant with 39 out of the 40 recommendations.

Despite the positive overall assessment, the report noted that while Jersey was technically compliant in almost all areas, significant progress is needed in practical implementation. MONEYVAL highlighted that Jersey’s AML approach “greatly relies on remedial actions, with a modest imposition of sanctions, insufficiently in line with the number and types of breaches detected.”

The report's more favorable tone compared to Monaco's recent evaluation, which resulted in its placement on the FATF grey list, is likely to boost Jersey officials. Concerns had been raised about a similar outcome for Jersey if the MONEYVAL review had been unfavorable. However, the report's more positive conclusions should enhance Jersey’s international reputation.

Mr. Gorst expressed optimism that the report would improve the perception of Jersey, which has often been labeled a tax avoidance and money laundering haven. He remarked, “Some detractors have spoken negatively of how Jersey interacts with the financial services sector, here we have an independent peer review. These are not straightforward and easy reports to obtain. We are challenged, we are asked questions from some who have preconceived ideas about small international finance centres, and yet we are able to answer those questions. We are able to show with our legislation and procedures and all of the work we have done that we have a good report when it comes to fighting financial crime in Jersey.”

He added, “These are really important in countering that view which is negative of Jersey because the facts are, when we were independently assessed, that we are doing a good job. Just like investors can have confidence in Jersey in the future, so can islanders have confidence in the financial services industry that we have here in Jersey.”

By fLEXI tEAM