The EU Legislation (Information Accompanying Transfers of Funds) (Jersey) Regulations 2017 establishes the legal framework for implementing the Financial Action Task Force (FATF) Recommendation 16, also known as the Travel Rule, within the jurisdiction of Jersey. It gives effect to Regulation (EU) 2015/847, adapted for Jersey’s legal and regulatory environment. The Regulations apply to payment service providers, money or value transfer service providers, and virtual asset service providers conducting business in or from Jersey, or who are incorporated in Jersey but operate abroad.

Core Obligations for Transfers of Funds

The Regulations require that specific information accompany any transfer of funds. For the payer, this includes name, account number or unique transaction identifier, and one of address, official personal document number, customer identification number or date and place of birth. For the payee, the name and account number or equivalent identifier must also be provided. These requirements are aimed at ensuring that both sides of a transaction can be identified, and the information is traceable by law enforcement or regulatory authorities.

The requirements apply to all types of payment flows, including batch transfers, transfers involving intermediaries, and transactions executed with or without customer accounts. When intermediaries are involved, they must preserve all accompanying information or be able to reconstruct it. The objective is to ensure transparency and data integrity throughout the payment chain.

Virtual Asset Transfers

A new provision introduced in September 2023 specifically addresses virtual asset transfers. If both the payer and payee are virtual asset service providers and the value of the transfer is below one thousand euros or its equivalent, the information obligations of Regulation (EU) 2015/847 do not apply. However, if either party is not a virtual asset service provider or if there is a higher risk of money laundering, then full compliance with the regulation is mandatory, regardless of the amount transferred.

This risk-sensitive approach acknowledges the evolving threat landscape in digital asset transfers and ensures proportional enforcement of the Travel Rule while maintaining flexibility for lower-risk transfers between regulated entities.

Offences & Enforcement

The Regulations create criminal offences for non-compliance by payer, payee, and intermediary payment service providers. Breaches of the applicable articles of Regulation (EU) 2015/847, as implemented in Jersey, can result in imprisonment for up to two years and financial penalties. Liability may extend to directors, officers, and partners if offences are committed with their consent or through their neglect. There is a statutory defence for individuals or firms that can demonstrate having taken all reasonable steps and exercised due diligence to prevent the offence.

Local Adaptations & Modifications

The Regulations adapt the original EU law to Jersey’s legal framework. References to “the Union” are replaced with “Jersey” or “British Islands”, and terms such as “Member State” are interpreted as including Jersey. References to EU directives are substituted with equivalent Jersey legislation, including the Money Laundering (Jersey) Order 2008, the Proceeds of Crime (Jersey) Law 1999, the Terrorism (Jersey) Law 2002, and the Data Protection (Jersey) Law 2018. These adaptations ensure that the regulatory expectations are consistent with Jersey’s domestic legal structures while preserving the intent and functionality of the EU regulation.

Record Keeping & Data Protection

The Regulations extend the data retention period from five to six years, reinforcing the expectation that firms preserve transaction and identity data for future investigation or regulatory review. They also align data processing expectations with Jersey’s Data Protection Law, ensuring lawful and secure handling of personal data throughout the transaction lifecycle.

Conclusion: WTR Compliance Integration

The EU Legislation (Information Accompanying Transfers of Funds) (Jersey) Regulations 2017 represents Jersey’s comprehensive implementation of the FATF Travel Rule. It applies robust requirements for the collection and transmission of payer and payee information across traditional and virtual financial ecosystems. By embedding these obligations into domestic law and tailoring them to local legal structures, Jersey ensures a clear and enforceable framework for wire transfer compliance. These Regulations enhance the Island’s ability to detect, deter and disrupt illicit finance, while maintaining alignment with international AML/CFT standards.