This put forward measures to support the adoption of digital finance across the Bailiwick and provide clarity on the regulatory treatment of emerging technologies, and proposed targeted amendments to open up the Bailiwick’s Virtual Asset Service Provider regime.
One change will allow firms to use secure digital signatures and electronic identity checks instead of their paper equivalents and this followed the process being used by one local company since the GFSC’s redrafted handbook was published in 2018.
‘[This is] something we hope will enable them to communicate with each other more easily, possibly using digital protocols, thereby reducing costly low-value activities whilst maintaining or enhancing anti money laundering standards,’ said a GFSC spokesman.
The handbook already allowed for the use of such technologies but the changes make it clearer how existing requirements apply when a company is looking to invest in technologies to increase the efficiency and accuracy of their anti-financial crime controls.
‘In practical terms, this means clearer regulatory expectations over the use of tools such as electronic verification, digital signatures and other technological processes when taking on a new client, monitoring activity and keeping records,’ he said.
Revisions to the handbook provide more clarity and re-confirm that digital or electronic methods can meet the same standards as traditional ones.
‘The updates are part of the Commission’s Digital Finance Initiative, which is aimed at supporting innovation while maintaining high standards of regulation.’
They reflect the GFSC’s aim to help companies make ‘confident, responsible use of technology to enhance the effectiveness and efficiency of their anti‑financial crime controls.
‘The amendments are intended to remove uncertainty and to encourage innovation and investment in appropriate solutions which have the potential to both enhance efficiency and outcomes.’
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