Our monthly roundup of news, events and sponsor reading material.

Members' Area

The Members' Area will develop over time, and will be populated with consultation responses and papers / advice issued by GAT and / or the Technical Committee.

Message from the Chair

Our next luncheon will take place on Monday 15th May when our sponsors Aspida Group will be presenting. Please note the change of venue - Luncheons will now take place at the Old Government House Hotel. Booking is available below in the Events section or via Eventbrite and all members will receive an event invitation shortly.

The dates of future luncheons can be viewed and/or booked (when live) via our interactive calendar at http://www.guernseytrustees.org/calendar

As always, I would be pleased to hear from members to understand any general frustrations or concerns you may have. Please do contact me.

With warmest wishes from GAT, enjoy your March newsletter.

Kind regards

Rhona Humphreys

GAT Chair

CONSULTATONS / FEEDBACK

Consultation on Amendments to Schedule 3 to the Law regarding Independent Audit, Business Risk Assessments and VASPs

The Commission issued a consultation paper on 28th March 2023 on proposed amendments to Paragraphs 3 and 15 of Schedule 3 to the Criminal Justice Law, 1999 (as amended) and associated rules and guidance in the Handbook on Countering Financial Crime and Terrorist Financing in relation to an independent audit function and on business risk assessments.

The consultation also includes further development of the regulatory framework for virtual assets service providers proposed in a draft ordinance to the Law which will provide for the information requirements for virtual asset transfers, the introduction of a £1,000 threshold on virtual asset transactions over which customer due diligence will be required and extension of the definitions of “funds” and “property” to specifically include virtual assets.

The consultation paper and associated draft legislation and Handbook changes can be found on the Commission’s Consultation Hub.

The GAT Technical Committee will be submitting a joint response to the consultation and would welcome your comments to take into consideration; please email us by Tuesday 18th April should you wish to share your views or have questions you would like included in the GAT response.

Individual responses are sought by 25th April 2023 and can be emailed to policyandresources@gov.gg and/or AMLCFT@gfsc.gg. Responses can also be submitted via the Consultation Hub.

Notice to GAT Members following notice from the GFSC: Russian Sanctions

As you may well be aware, the UK has now designated all persons designated under the Financial Sanctions Regime for the purposes of the prohibition on providing trust services.

In response, the Policy & Resources Committee has issued a general licence which provides a 120-day winding down period in which to take the action necessary to exit existing relationships. It is important to note that, like the prohibition, this licence does not apply to relationships where an asset freeze is in place.

Measures which should be taken:

• All businesses must check whether they maintain any accounts or otherwise have any kind of relationship with the persons referred to above.

• Businesses must report any findings to the Policy & Resources Committee immediately. They must also ensure that they have taken all other steps that may be required in order to comply with the reporting obligations at section 14 of the Sanctions Law.

• The information referred to above is required by the Policy & Resources Committee in the exercise of its powers under section 15 of the Sanctions Law. Please note: There is no requirement to make any report in respect of a matter that has previously been reported to the Policy & Resources Committee. However, anybody relying on the general licence must make reports as required by that licence.

• Any information or queries should be sent to sanctions@gov.gg with the subject line “Russia Sanctions”.

• Where you have identified a connection to a designated person as set out above, please also inform the Guernsey Financial Services Commission via email to amlcft@gfsc.gg providing short form information on the nature of the sanction connection and the measures you have taken or intend to take.

Further information on issues in relation to sanctions is available on the States of Guernsey website at http://www.gov.gg/sanctions.

IMPORTANT: GAT would strongly encourage members who may have concerns over the expected 120 day timeframe given by Policy and Resources to terminate relationships and/or wind up structures to contact Gillian Browning at the GFSC directly, who will be able to advise and provide assistance.

Licensees might wish to review a blog published by the UK Government's Office of Financial Sanctions Implementation for further information by clicking the button below.

Survey in respect of Staffing and Housing, issued 8th March 2023

The Guernsey International Business Association (GIBA) is surveying finance sector firms in Guernsey to attempt to obtain information relating to two key issues currently impacting the finance sector, together with the wider island.

The survey covers two key issues, being Staffing and Housing and GIBA intends to use the results of this survey as part of its ongoing engagement with the States of Guernsey.

GAT Members are strongly encouraged to complete and return the survey to Carl Rosumek, GIBA Secretary and Technical Resource no later than 13th April 2023. All responses will be treated in the strictest confidence.

Feedback to industry on the quality of SARs submitted to the FIU

The Financial Intelligence Unit (FIU) constantly monitors Suspicious Activity Reports (SARs) quality in order to ensure that it receives the best possible intelligence to enable it to perform its critical role in the fight against Money Laundering, Terrorist Financing and Proliferation Financing.

In addition to the Guidance document on SARs available on the FIU website, the Head of the FIU also wrote to the Boards of banks, trust and company service providers firms (being the highest risk sectors identified by the National Risk Assessment) and also to law firms and investment businesses, drawing attention to the Guidance and the requirement to have internal policies and procedures on the quality of SARS being provided to the FIU.

As a result of its review, and in order to ensure consistent high quality in the submission of SARs, the FIU is introducing upgrades to the THEMIS system which will be effective later this year. Advice as to the upgrades will be issued in due course and the Guidance document will be revised to reflect the changes.

Meanwhile, as part of its continued provision of feedback to industry, the FIU will, with immediate effect, be giving initial written feedback on the quality of SARs and whether they align with the Guidance. This feedback will be given shortly after a SAR is submitted.

Please view and/or download the document “Why Care About SARs?” by clicking the button below, which is by way of a reminder of the vital importance of this topic and circulate copies of this document within your organisation, including at Board level and to those who may be responsible for making an internal report to the MLRO.

NEWS

World-wide recruitment opportunities for businesses as ambitions of Population and Immigration Policy Review begin to be realised

Following States approval of the Population and Immigration Policy Review proposals in October 2022, the Committee for Home Affairs has been working to implement the required changes needed to realise the ambitions of the Assembly - namely providing even greater flexibility for businesses in their efforts to recruit and retain the staff they need.

The Committee for Home Affairs is pleased to be able to announce that, from 3 April 2023, a new combined population and immigration policy framework will be in place that will introduce the far-reaching changes agreed by the States.

This change means businesses will now have significant opportunities to recruit much-needed staff from anywhere in the world.

These benefits are principally achieved through tying the Immigration Work Permit Policy to the Employment Permit Policy (EPP) for rest of the world, rather than only EU/EEA nationals as is the case currently. In doing so, local businesses employing to over 250 roles listed in the EPP will have access to a global pool of workers from which to recruit, rather than being restricted to CTA and EU/EEA countries only. British or Irish nationals (or those who possess Leave to Remain in the Common Travel Area) continue to not need a visa.

The changes have the potential to help businesses combat recruitment challenges experienced since Brexit and the pandemic. It will also make things easier for employers who now only need to work with a single policy rather than separate Immigration/Population Management policies.

Two-factor authentication (‘2FA’)

Further to the announcement in the Commission's 2021 Annual Report advising of their intention to implement mandatory two-factor authentication (‘2FA’) on their Online Portals for all regulated entities, the Commission has been working on their background systems. On this basis by 31 May 2023, the Commission intends to switch 2FA on for all Portal Users who have not yet enabled this functionality.

2FA is an additional layer of security recommended by the National Cyber Security Centre to ensure only authenticated users gain access to an online account and is an effective way to protect against many security threats that target user passwords and accounts.

The Commission has published updates on the Online Portals with further information and requested that users set up 2FA on their accounts as soon as possible. Any user who has not amended their account security will have email 2FA enabled automatically by 31 May 2023. Please note that for 2FA to work successfully it is important that the email address attached to a User Profile is correct or the user will be blocked out of their account.

A dedicated Support Inbox has been set up for any queries, please email 2FASupport@gfsc.gg and a 2FA User Guide created by the Commission can be viewed via the button below.

Country Lists Updates to the Handbook and Instruction

On Monday 13th March the Commission issued amendments to the country lists in Appendix C and Appendix I of the Handbook on Countering Financial Crime and Terrorist Financing reflecting the Financial Action Task Force’s updated list of jurisdictions under increased monitoring, which includes South Africa and Nigeria. FATF has removed Morocco and Cambodia from its list of jurisdictions under increased monitoring, however they will remain on Appendix I as they are listed by other relevant external sources.

The amendments include the removal of South Africa from the list of equivalent jurisdictions in Appendix C and its addition to the list of countries and territories identified in Appendix I which may present a higher risk of money laundering and terrorist financing. At the same time an instruction is issued to all specified businesses specifying the steps to be taken before the end of December 2023 in respect of business relationships they have which are connected to South Africa.

Similar action is being taken in the other Crown Dependencies.

The updated appendix, the instruction and the latest FATF notice can be accessed via the links on the webpage via the button below.

The Commission updates its website

The Commission’s website has been updated and refreshed and was re-launched on Wednesday 8th March with some new features designed to improve its functionality, user experience and accessibility. The Commission recognises that the website is a key tool which they use to relay messages and information to industry and the changes have been delivered as part of the Commission’s 2021-24 three-year business plan.

The search capability has been overhauled to introduce the option to display results by ‘most recent’ or by ‘most relevant’ as well as the ability to filter results by year or content type. The search algorithm behind the website has been adjusted to allow results to be returned that are more relevant. It now allows for the use of criteria such as keywords and popularity.

The user experience has also been enhanced. Changes includes the consolidation of the legislation and guidance pages into one area. These pages now have the option to filter results by sector and with specific search functionality, helping users to locate the information they need, quickly and efficiently.

Accessibility across the website is important and an assessment has been undertaken to review the Commission’s web content is in line with international Web Content Accessibility Guidelines.

2023 Economic Activity Return

The Economic Activity Return seeks to collect information on economic activity in Guernsey and Alderney to improve the accuracy of the Factor Income, Gross Value Added (GVA) and Gross Domestic Product (GDP) figures and forecasts that are published by the States of Guernsey. Around 500 employers with operations across a range of sectors are selected to complete a Return each year. Selected employers will need to provide information on their income and expenditure over the past two years and forecast or budgeted income and expenditure for the next two years.

Selected employers will be sent a letter to inform them that they are required to complete an Economic Activity Return in 2023. Only those that are sent such a notification are required to complete a return. Employers will be selected as follows:

• All employers in Guernsey (including Guernsey, Herm, Jethou and Lihou) with more than 25 employees will be selected every year.

• A representative sample of remaining employers in Guernsey, selected from across all business sectors. The employers selected will be rotated from year to year, but some may be included for two consecutive years to ensure statistical integrity.

• All employers in Alderney (initially, with a review of this approach being undertaken in 2024). For employers operating from both Alderney and Guernsey, a separate return will be required regarding each entity.

By the end of April 2023, all the notifications will have been issued to those required to complete a Return in 2023 and the deadline is 31st July 2023.

For further information please click the button below.

Members appointed to new Sub-Committee to review corporate tax options.

On Friday 24th March the Policy & Resources Committee announced who will form a new Sub-Committee that will look at options for raising further revenue from the corporate sector, while maintaining Guernsey's competitive position and compliance with international standards. The Committee would also like to thank those Deputies who expressed interest in joining the Sub-Committee.

At the February States Meeting, the States Assembly agreed that a sub-group should be formed that would take forward the work which had already begun on investigating changes to the tax system. The Terms of Reference agreed by the Assembly direct that the group should engage with industry, Jersey and the Isle of Man to develop proposals.

The Policy & Resources Committee's Vice-President and Treasury lead, Deputy Mark Helyar will chair the Sub-Committee, and will be joined by two other States Members and one member from outside the States:

Deputy Lyndon Trott

Deputy Nick Moakes

Mr Andrew Niles

For further information please click the button below.

EVENTS

Members are warmly invited to save the date for the next GAT Luncheon of 2023, taking place on Monday 15th May in the Regency Room of the Old Government House Hotel.

Peter Mills from GAT sponsors Aspida Group will be presenting “A risk based approach – insight on recent GFSC updates for the 2nd and 3rd line”. GAT Chair, Rhona Humphreys will deliver a welcome and industry update. Booking is available now via Eventbrite or by clicking the button below and members will also receive an event invitation.

The dates of future luncheons can be viewed and/or booked via our interactive calendar at http://www.guernseytrustees.org/calendar

STEP Guernsey Lunchtime Lecture 2022/2023 Series

Venue: The Colborne Room, OGH Hotel

When: Thursday 27th April 2023, 12-1pm

Topic: Privacy vs Transparency: UK, EU and US developments in corporate and trust transparency

Speaker: Chris Moorcroft, Harbottle & Lewis

During this session, Chris, Partner at Harbottle & Lewis, will examine transparency initiatives in the UK, Europe and US. This will include consideration of the impact for Guernsey of recent developments, including:

• The US Corporate Transparency Act

• The Overseas Entities Register and related developments in the UK

• The recent judgment of the European Court of Justice which ruled that public registers of beneficial ownership were an infringement of European Union law: seen as the first major European intervention against transparency

AI & Finance in Guernsey: The Power and the Implications

Learn more about the power and potential of AI at a one-day conference jointly organised by the Guernsey Financial Services Commission and Guernsey Finance.

This event will feature keynote speakers and educational sessions where you can hear more about the potential impact of AI on the finance industry.

Venue: Beau Sejour Leisure Centre, St. Peter Port, Guernsey

Date: Wednesday 28th June 2023

Please register your interest by emailing rsvp@gfsc.gg

A selection of upcoming courses through the GTA

Compliance CPD Series – Managing the Digital Assets Environment

This one-hour session, part of our popular Compliance CPD Series, will examine recent upheavals in the digital assets market including the need for regulation and responsible investment approaches for traditional finance firms and crypto natives.  Join Ove Svejstrup, an assurance partner at EY, as he explores key findings from their report on the topic and examines how companies can prepare for the ever-changing digital assets landscape.

 Cost: £45
Date: 7 March 2023

Venue: GTA University Centre
Times: 12:30 – 13:30
Further details and registration here.

Time Management for Busy Professionals

 This half day course is designed to provide busy professionals with the opportunity to take a focused look at their current operating style and approach to their work.  The aim of the course is to enable delegates to identify areas where they may be able to work more effectively and efficiently and doing so create more time.

Cost: £205
Date: 18 April 2023
Venue: GTA University Centre
Times: 09:00 – 13:00
Further details and registration here.

Introduction to Investments

This one day course is designed for relative newcomers to investments, assumes no prior knowledge and aims to provide delegates with a basic understanding of investments and their uses.

Cost: £295
Date: 25 April 2023
Venue: GTA University Centre
Times: 09:30 to 16:00
Further details and registration here.

Taxation for Trust Administrators

This one day course is intended for trust administrators who require an understanding of taxation.  Delegates will be given an overview of a wide range of taxation issues that can affect clients, raise awareness of client structures and transactions and understand when a client taxation issue needs to be addressed.

Cost: £295
Date: 26 April 2023
Venue: GTA University Centre
Times: 09:30 – 16:00
Further details and registration here.

Fund Overview Level 2

This one day course will be of interest to staff working directly/indirectly in the fund environment and will provide an overview of a number of topical areas that delegates might encounter in their career.  This course is designed as a follow on from Fund Overview Level 1 and is intended to provide delegates with a more thorough understanding of the fund environment.

Cost: £355
Date: 27 April 2023
Venue: GTA University Centre
Times: 09:00 to 17:00

Further details and registration here.

Please contact camilla.hobbs@gta.gg, GTA Programmes Manager, for further details on any of the above courses.

Guernsey Private Wealth Forum 2023 - Save the Date

Save the date for the return of the annual Guernsey Private Wealth Forum in London, where experts will discuss the latest trends in the sector and share the strengths of Guernsey as a jurisdiction of choice for private wealth.

Providing specialist wealth management services for sophisticated clients and their families is a long-established tradition for Guernsey. With its robust constitutional, legislative and regulatory framework, the island provides a safe and secure environment for private wealth.

More information on speakers and content to follow, should you have any questions, please contact Emily Wild.

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