Regulations for Channel Islands and Isle of Man

Although it is recognised that the above are not legally part of the United Kingdom, and indeed have their own devolved legislatures and governments, nor are they part of the European Union, for the purposes of the regulation of CIMA members they are treated by CIMA as if they were part of the United Kingdom.

The Channel Islands come under Council Electoral Area 2 (South West England and South Wales) and the Isle of Man comes under Area 6 (North West England and North Wales). It has its own CIMA branch as part of the UK network. To all intents and purposes, members in these territories enjoy the same privileges as those in the United Kingdom, and CIMA therefore has similar expectations of them.

However, it is clear that the provisions of such specific laws as the UK Money Laundering Regulations 2007 do not extend to these territories, although their own laws are compatible with this law and their own governments subscribe to the FATF 40+9 Recommendations on Money Laundering, which have in their turn produced the EU Third Directive on Money Laundering.

In Guernsey, Alderney, Sark and Herm, the States Financial Intelligence Service has the responsibility for enforcing Money Laundering legislation. The FIS website gives details.

There is a substantial volume of Anti-Money Laundering legislation in force, most of it based on the Criminal Justice Act of 1999; this Law is to be substantially amended by the Projet de Loi 'The Criminal Justice Act (Proceeds of Crime)(Bailiwick of Guernsey)(Amendment) Law 2007', currently before the States. Other recent relevant legislation includes the Disclosure (Bailiwick of Guernsey) Law 2007.

In Jersey, a similar portfolio is carried by the Joint Financial Crimes Unit (JFCU) of Customs and Excise, which is staffed by both Police and Customs Officers. The JFCU’s details are recorded here. In summer 2007, the States issued a series of consultation documents aimed at bringing Jersey’s Anti-Money Laundering and Counter-Terrorist Finance laws into line.

Anti-Money Laundering Regulations – Isle of Man

The Isle of Man Government's Department of Home Affairs ('DHA') brought into force the Criminal Justice (Money Laundering) Code 2007 from 1 September 2007. The legislation actually came into force before it was laid before Tynwald, and the Government is currently engaged in the process of ensuring that all relevant persons, as defined in the Code, are aware of their obligations under that code and that adherence to the code is sufficiently regulated/supervised.  

The DHA proposes to adopt a system whereby in principle each relevant person must register with them, and they will issue guidance notes and will ensure adherence to them.

However the DHA is also aware that many professional bodies, including CIMA, issue their own anti-money laundering guidance to their members and supervise adherence to the same.  It is proposed that members of such professional bodies may rely on this and would therefore not be required to register with the DHA, but instead lodge with them a declaration of membership of the professional body. This declaration has not at the time of writing been made available, but will almost certainly be available here.

Members of CIMA who are relevant persons under the Code must therefore comply with this proposal and lodge a declaration of membership with the DHA. Schedule 1 of the Code sets out those persons and activities which come under this legislation, and includes at 6(1)d “an accountant or a person who, in the course of business, provides accountancy services.”  The Code may be downloaded here.