MONEYVAL calls on Guernsey to step up efforts against money laundering

The Council of Europe’s anti-money laundering body, MONEYVAL, has today published a report urging Guernsey to improve the investigation, prosecution and conviction of money laundering offences whilst also highlighting Guernsey’s good understanding of the risks of money laundering/terrorist financing and its highly effective application of targeted financial sanctions.
The report commended Guernsey’s Financial Intelligence Unit for producing high-quality analytical products and strategic analysis, while acknowledging the limited extent to which they are used by law enforcement authorities to initiate investigations. The quality of suspicious activity reports also remains a concern.
The Guernsey Financial Services Commission and the Alderney Gambling Control Commission have a good understanding of risks linked to sectors under their supervision, according to MONEYVAL. They implement a risk-based supervisory model, which has room for improvement in terms of the frequency and extent of the examinations involved.
The report states that the private sector demonstrated a good understanding of the risks and application of measures against money laundering and terrorist financing. However, challenges remain in relation to the risk mitigation of complex corporate structures, and the application of countermeasures in respect of tax-related money laundering. MONEYVAL also called for further efforts to enhance the quality and types of suspicious activity reports, especially those related to tax evasion and corruption.
The report states that Guernsey has comprehensive measures to ensure transparency of beneficial ownership of legal persons and arrangements, although the enforcement actions have been limited.
In addition, MONEYVAL considers that competent authorities actively, regularly and effectively cooperate with foreign counterparts, although, in the case of the Financial Intelligence Unit, the number of cooperation requests is not fully in line with the risk profile involved.
The report also notes that the legal and institutional framework is in place to provide the widest possible range of mutual legal assistance, but the use of international cooperation channels is far from being exhausted.
Guernsey is expected to report back to MONEYVAL, under MONEYVAL’s regular follow-up reporting process, in May 2027.

Article Credit: https://www.coe.int/en/web/moneyval/-/moneyval-calls-on-guernsey-to-step-up-efforts-against-money-laundering