Financial Services Business
Notification Requirements

The States of Guernsey recently approved the new Criminal Justice (Proceeds of Crime) (Bailiwick of Guernsey) (Amendment) Regulations 2002.


The purpose of the regulations is to amend the Criminal Justice (Proceeds of Crime) (Bailiwick of Guernsey) Law 1999.

The regulations are a response to:

  • recent regulatory changes in the United Kingdom regarding bureaux de change, cheque cashiers and money transmitters;

  • changes introduced by the US Treasury; and

  • the anti-terrorist Special Recommendations of the Financial Action Task Force on Money Laundering.

The regulations widen the definition of 'financial services business' in the schedule to the existing law.

The regulations introduce a requirement for financial services businesses to introduce appropriate anti-money laundering measures.

The regulations also require that non-regulated financial services businesses provide the Guernsey Financial Services Commission with certain information.

These non-regulated businesses include:

  • those providing pure lending services;

  • bureaux de change;

  • money transmission agents; and

  • those providing informal value transfer systems.

Financial Services Business

A 'financial services business' is defined under the regulations as any person or body carrying on or providing services within the Bailiwick of Guernsey in relation to the business of:

  • lending;

  • financial leasing;

  • money services businesses;

  • providing informal value transfer systems;

  • issuing/redeeming/managing/administrating means of payment (eg, credit cards or cheques);

  • providing financial guarantees/commitments;

  • trading on behalf of customers in money market and other financial instruments;

  • participating in securities issues, including underwriting/placement as agent;

  • settlement/clearing services for financial assets;

  • providing advice to undertakings on capital structure/industrial strategy;

  • money broking/changing;

  • providing portfolio management services;

  • providing safe custody services;

  • providing services of safekeeping /administration of cash for clients;

  • providing credit union services; or

  • accepting repayable funds other that deposits

A financial services business includes any person providing the services outlined above in the course of carrying out the profession of a lawyer, accountant or actuary, unless those services are incidental to the provision of the legal, accountancy or actuarial advice or services.

Notification Requirements

A financial services business as defined in the regulations must notify the commission of the following:

  • its legal name/trading name;

  • its place and date of incorporation/establishment;

  • its business address;

  • the names and addresses of its directors, partners, senior officers, beneficial owners and any others who may control the business;

  • the name of the designated money-laundering reporting officer;

  • a statement of whether any persons listed above have criminal convictions and, if so, the details; and

  • details of the types of financial services carried out.

For further information on this topic please contact Ian Kirk or Paul Nettleship at Collas Day by telephone (+44 1481 723191) or by fax (+44 1481 724074) or by email ([email protected] or [email protected]).