The 2023 Amendment Ordinance introduces a new category of regulated individuals referred to as “unregulated officers” into the Criminal Justice (Proceeds of Crime) (Bailiwick of Guernsey) Law 1999. These are trustees of relevant trusts or partners of relevant partnerships who are not licensed or authorised by the Guernsey Financial Services Commission under any of the supervisory laws. The amendment establishes new record-keeping, disclosure, and information provision requirements for these individuals.

While the Ordinance does not specifically mention wire transfers or virtual asset transfers, it forms part of the broader legislative framework that supports transparency and accountability across financial transactions, including those governed by the FATF Travel Rule.

Required Information & Record Keeping

Schedule 10, inserted by the Ordinance, mandates that unregulated officers obtain and hold accurate and up-to-date information about the identity of key persons involved in the trust or partnership. This includes settlors, trustees, protectors, beneficiaries, general and limited partners, and any natural persons with ultimate effective control.

They must also maintain information on any regulated agents and service providers associated with the structure. The records must be retained for at least five years following the dissolution or termination of the trust or partnership, or five years after the end of a business relationship or the completion of an occasional transaction by a regulated service provider.

This emphasis on identifying controlling individuals and maintaining records aligns with core principles of wire transfer regulation, particularly the requirement that the identity of both originator and beneficiary in financial transactions be verifiable and accessible.

Disclosure & Data Sharing

Unregulated officers are required to disclose their role when entering into business relationships or carrying out occasional transactions with financial services businesses or other relevant entities. They must also provide beneficial ownership and asset information where relevant to the business arrangement.

They may share information with competent authorities or with businesses upon request. The Ordinance empowers the Committee to issue further guidance, and it obliges unregulated officers to comply with information requests from relevant authorities, including for the purposes of assessing AML, CFT, or financial crime risks. These disclosure provisions support the transparency goals of the Travel Rule, especially in cases where such officers might initiate or receive fund transfers through structures not otherwise subject to licensing.

Offences & Penalties

The Ordinance creates specific offences for knowingly or recklessly providing false, deceptive, or misleading information. It also establishes criminal liability for failing to comply with the duties imposed by Schedule 10. Penalties for non-compliance include imprisonment and financial sanctions, with higher penalties applicable upon conviction on indictment.

The inclusion of a statutory defence for those who can prove they took all reasonable measures to avoid committing an offence further reflects the risk-based compliance approach consistent with WTR enforcement norms.

Conclusion: WTR Compliance Integration

While the Criminal Justice (Proceeds of Crime) (Bailiwick of Guernsey) (Amendment) (No. 4) Ordinance, 2023 does not directly regulate wire transfers, it reinforces the foundational principles that support the implementation of the Travel Rule. By extending transparency, record-keeping, and disclosure obligations to unregulated officers associated with trusts and partnerships, the Ordinance helps ensure that beneficial ownership and control information is available even in parts of the financial system operating outside formal licensing regimes. This contributes to a more comprehensive framework for identifying originators and beneficiaries, enhancing the traceability of financial flows in line with international WTR standards.