Financial crime must be tackled in open view

One of Guernsey Finance’s primary calling cards is that in 2016, Guernsey was determined as ‘compliant’ or ‘largely compliant’ with 48 of 49 of the Financial Action Task Force’s recommendations on anti-money laundering and combating the financing of terrorism – the best score of any jurisdiction.

On that previous occasion when Guernsey was evaluated by Moneyval, a body of the Council of Europe tasked with assessing effectiveness of preventing money laundering and terrorism-financing, then Chief Minister Jonathan Le Tocq was effusive over the outcome.

‘As a jurisdiction with a global finance sector we need to demonstrate that we continue to meet in practice the highest international standards of law enforcement and regulation –and we have done so. This assessment sends a very clear and positive signal to the Council's 47 member states.'

So we can be sure that the announcement of the creation of new Economic and Financial Crime Bureau to investigate money laundering and economic crime is explicitly aimed at satisfying international expectations, before Guernsey is next evaluated by Moneyval in 2023.

Guernsey finance firms may not be overjoyed at the burden they may face from the new bureau, but they will also accept the need to retain and demonstrate that world-leading AML reputation.

But Deputy John Dyke was also right to recognise, at a Scrutiny Management Committee hearing yesterday, whether preparations for Moneyval could push the island into a quota mentality, where certain numbers had to be brought before the courts.

Home Affairs president Deputy Rob Prow denied that, but said that Moneyval required ‘a tangible response that demonstrated effectiveness’. So investigations and prosecutions will increase, or Guernsey will have to work incredibly hard to show that inquiries are thorough and the Guernsey industry is genuinely clean.

The bureau's set up costs, revealed yesterday to be £1.35m., will have to be faced as a cost worth paying.