Island spends £23m. preparing for Moneyval

Inspectors are due in the island in the next couple of weeks for interviews with key people and site visits to local offices.

Extensive preparations are continuing to demonstrate that the island works to the highest international standards.

Guernsey has invested £23m. since 2019 in a mixture of one-off enhancements to the anti-money laundering and countering the financing of terrorism regime.

This has included funding new recurring expenditure to establish the Economic and Financial Crime Bureau, to create a new and dedicated Economic Crime Division within the Law Officers of the Crown, as well as enhancing the capacity of the Financial Intelligence Unit and the Guernsey Registry.

There has also been significant engagement with the finance industry itself, raising awareness about a range of issues, including the island’s updated National Risk Assessment, and sanctions.

Policy & Resources Committee president Lyndon Trott said that expectations and assessments from international supervisory bodies had become ever more stringent since the island was last inspected by Moneyval.

‘We will be evaluated against stronger international standards than was the case in 2014 and it is the effectiveness of our compliance with those stronger standards rather than technical compliance which will be key,’ he said.

‘This means it will be a more challenging inspection than in 2014, but we are confident we have done everything possible to put the Bailiwick in the best position to achieve a positive outcome.’

Rob Prow, president of the Committee for Home Affairs, said that the Moneyval evaluation was crucial for the island’s reputation, the economy, and the ability to continue to operate as a respected international finance centre.

‘We have been preparing for the mutual evaluation for a long time, with a huge amount of work taking place to co-ordinate Bailiwick-wide efforts meeting international ML/CT/PF standards,’ he said.

This has involved work across States committees and also involved the Guernsey Financial Services Commission, Alderney Gambling Control Commission, Law Enforcement, Financial Intelligence Unit, Economic and Financial Crime Bureau, Guernsey Registry, Revenue Service and the Law Officers of the Crown, under a new financial crime strategic coordination forum.

‘It is important to remember that Moneyval is coming to inspect the Bailiwick as whole, so a combined effort by all involved in the finance sector is very much needed and has been developed across a range of stakeholders,’ Deputy Prow added.

‘We are confident heading into the evaluation but whatever the outcome, the States and all relevant island agencies will work together to ensure that any recommendations arising out of the mutual evaluation are prioritised and addressed as soon as possible after the adoption of the final report by the Moneyval plenary.’