The Proceeds of Crime (Supervisory Bodies) (Jersey) Law 2008 provides the legal basis for the supervision of compliance by certain businesses with anti-money laundering and counter-terrorism financing requirements. It establishes the supervisory framework necessary for enforcing obligations related to financial crime prevention, including those that pertain to wire transfers and the FATF Travel Rule.

This Law enables the identification, registration, and regulation of entities conducting financial services or Schedule 2 business, which includes payment services, e-money issuance, and other fund transfer-related activities. It also provides mechanisms for enforcement, inspections, information sharing, and the imposition of sanctions.

Supervisory Responsibilities & Wire Transfers

The Law defines "supervisory functions" to include oversight of compliance with Jersey's wire transfer regulations. Specifically, it references the EU Legislation (Information Accompanying Transfers of Funds) (Jersey) Regulations 2017, which is Jersey’s principal legislative instrument implementing FATF Recommendation 16. Supervisory bodies must monitor whether financial institutions and other regulated entities meet these requirements.

The Jersey Financial Services Commission (JFSC) is the default supervisory body for regulated entities, with the Minister having the authority to designate other supervisory bodies where necessary. These supervisory bodies are required to apply a risk-based approach, factoring in the nature and scale of a business's exposure to money laundering and terrorism financing, including those arising from cross-border wire transfers.

Registration & Oversight of Regulated Entities

The Law prohibits any person from carrying out a Schedule 2 business in or from Jersey without being registered. This includes businesses offering money transmission, payment services, and other activities where wire transfer obligations are relevant. Entities must apply for registration, and the JFSC may impose conditions or refuse registration if individuals involved are not fit and proper.

Once registered, firms are subject to periodic supervisory reviews, inspections, and ongoing obligations, including providing information on key persons, changes in business structure, and material incidents that may impact compliance.

Powers of Supervisory Bodies

Supervisory bodies have extensive powers to enforce compliance with WTR-related duties. These include the power to issue Codes of Practice, give directions, investigate breaches, obtain documents and information, and enter premises under warrant. They may issue injunctions, impose remedial orders, and take control of assets where necessary to mitigate risk or remedy contraventions.

The Law also enables supervisory bodies to share information with foreign regulators, particularly where such cooperation relates to financial conduct, sanctions, or compliance with wire transfer regulations across jurisdictions.

Enforcement, Sanctions & Public Disclosures

Non-compliance with registration, disclosure, or WTR-related obligations may result in criminal prosecution. Offences include providing false or misleading information, obstructing investigations, and failure to meet reporting obligations. Penalties range from fines to imprisonment for up to seven years.

Supervisory bodies may also publish public statements identifying individuals or entities that have breached legal requirements, including WTR-related provisions. This transparency mechanism supports deterrence and informs the public and market participants about potential risks.

Integration with Wire Transfer Regulation

The Law integrates with other key legislative instruments that form the foundation of WTR in Jersey. These include the Proceeds of Crime (Jersey) Law 1999, the Money Laundering (Jersey) Order 2008, and the aforementioned 2017 Regulations covering information accompanying transfers of funds. The supervisory role defined in this Law ensures that these instruments are effectively implemented and enforced in practice.

Conclusion: WTR Compliance Integration

The Proceeds of Crime (Supervisory Bodies) (Jersey) Law 2008 provides the institutional and procedural framework required to monitor and enforce compliance with wire transfer regulations in Jersey. It designates the JFSC and other supervisory bodies to oversee entities conducting financial and Schedule 2 business, mandates risk-based supervision, and provides strong investigatory and enforcement powers. Through its integration with Jersey’s AML/CFT framework and the 2017 wire transfer regulations, the Law ensures that originator and beneficiary information is collected, retained, and transmitted in accordance with FATF Recommendation 16, thereby reinforcing Jersey’s commitment to financial integrity and international standards.