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The Panel asked the Assistant Chief Minister about a revised Memorandum of Understanding with Jersey Financial Services Commission and was informed that this will be in place by the end of 2023. Richard Corrigan, Chief Officer of Economy, spoke to the Panel about the importance of striking the correct balance between the JFSC’s role as an independent regulator and the need for Government to be provided with the appropriate data. The Panel heard that, during the preparation process for the MONEYVAL assessment, the Government required a certain amount of statistical information from the JFSC, and that this Memorandum of Understanding aims to allow for the collection of better performance information by facilitating a more regular exchange of statistical data. 

The Panel also questioned the Minister on the Financial Crime Strategy, including work being undertaken around access to Beneficial Ownership information. Access to adequate, accurate and up-to-date information on the true owners of beneficial ownership by competent authorities is a Financial Action Task Force recommendation.  The Panel heard that Jersey has been in a “very strong position” regarding regulatory access to this information for many years. However fully public registries have been challenged on human rights grounds in the EU and there are no plans to move to a public register in Jersey, with the emphasis being on the need to meet international standards “in a way that still protects the individual”. 

The Panel asked about a high-level meeting that the Minister attended in Warsaw last month alongside delegates and Ministers from over 30 countries and organizations, where a written declaration was signed reaffirming the commitment of those attending to combatting financial crime. The Panel heard that this affirmation of commitment creates a level playing field with other Financial Action Task Force members, as these standards are now expected by the global community, creating a shared sense of purpose and co-operation in tackling financial crime.  

Following publication of their Annual Report and Accounts, and a question submitted by a member of the public, the Panel questioned the Minister on plans to merge the Jersey Bank Depositors Compensation Scheme and the Jersey Resolution Authority and heard that this move promoted efficiency. The Panel also queried whether the limit of compensation set out in the Banking Business Regulations could be adjusted in line with inflation. The Panel was informed that work of this nature could be initiated by the Board of the Compensation Scheme, who could then make a recommendation to the Minister around changing the legislation. 

Deputy Moz Scott, Chair of the Economic and International Affairs Scrutiny Panel, commented:  

“I thank the Minister and her officers for their responses to our questions. The Panel was interested to hear about the further work being undertaken to ensure Jersey is in the strongest possible position to tackle financial crime. The Panel will be writing to the Minister to explore the remit of the merged Jersey Bankers Depositors Scheme and the Jersey Resolution Authority further.” 

The full recording of the hearing can be accessed here.