Beneficial Ownership TCB Seminar. 28 April 2017

Transcription

1 Beneficial Ownership TCB Seminar 28 April 2017

2 If everyone is moving forward together, then success takes care of itself. Henry Ford

3 Agenda Achievements to date Registry vision Beneficial Ownership Guidance, FAQs and support Registry API Supervisory focus Government Policy update Moving forward together

4 Apr 2016 Nov 2016 Exchange of notes/technical protocol Nov 2016 JFSC Beneficial Ownership project begins Government Policy issued

5 Dec 2016 Jan 2017 Electronic C17s live JFSC guidance, FAQs and support available Feb 2017 Registry API component begins

6 May 2017 Registry API live 30 June 2017 TCB file via API directly, or through a third Party Middleware Solution. Central register is accurate and current

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8 Future State of the Companies Registry

9 Beneficial Ownership Architecture

10 Guidance, FAQs and Support

11 Guidance, FAQs and support FAQs issued highlighting different approach between C2A and C2B incorporations Supplemental FAQs issued relating to trusts and property share transfer companies Guidance on C17S available online All TCBs provided with one to one meetings with senior staff to iron out queries Interactive day to day support by Registry officers provided drop in sessions provided 3 times a week.

12 Guidance, FAQs and support Clarity to follow by way of new legislation; One stop shop legislation for all registry related matters envisaged APIs introduced in May 2017and new Registry platform in 2018 Amendments to COBOs to clarify SDD Article 18(6A) of the MLO only to be applied. CIFs certificates will be reissued placing BO requirements Scope does not cover unit trusts nor non-dom funds. Register of directors.

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14 Registry API

15 Registry API Project

16 Implementation Timeline

17 Supervisory Focus

18 Supervisory Focus TCB Confirmation Statement Dear CEO Letter issued 27 April 2017 requesting confirmation statement indicating which option(s) your organisation has chosen. Any queries or concerns on providing confirmation by 12 May and/or meeting 30 June deadline to be raised with your Supervision Manager as soon as possible.

19 Supervisory Focus Non-Compliance Post 30 June 2017 Requirement to refresh Beneficial Ownership and Control Information with Registry, and thereafter keep up to date, is contained in the revised consent issued to Jersey entities under CoBO. Failure to comply with the consent issued is subject to various penalties, including fines and/or imprisonment. These are criminal sanctions. The JFSC will look to follow its existing published policy of referring suspected criminal offices to the Attorney General in cases of late, or non-submission. It is acknowledged that the consent is applicable to the entity to whom it has been issued to rather than the TCB. However, multiple cases of late or non-submission concerning companies administered by the same TCB may indicate a failure to comply with (for example) Principle 3 of the TCB Codes of Practice (requirement to organise and control affairs effectively) so potentially opens up the TCB to regulatory action. Ongoing compliance will form part of on-site supervisory visits.

20 Government Policy Update

21 Government Beneficial Ownership Policy How are we doing? Good progress being made on implementation of enhanced 2016 policy Future legislative amendments proposed to streamline and simplify Registry legislation relating to all product laws Currently C17S requirement and updating within 21 days of change are a condition of the issued COBO That will soon be translated to legislation with modern enforcement powers Critically important to file C17S by 30 June 2017 sanctions for noncompliance can be a criminal offence on the legal entity and regulatory sanctions on the TCB

22 There are significant challenges in the international community

23 There are significant challenges to the industry

24 And the challenges will create new obligations The FATF are considering further action globally on beneficial ownership issues The EU 4 th Anti-Money Laundering Directive is under amendment in Brussels discussion of public registers of Companies and Trusts The United Kingdom are proposing extending their PSC Register to include beneficial owners of foreign companies that own UK property.

25 And these efforts have been recognised.

26 The Broader Picture Our new information exchange agreements with the UK come into force on 1 July 2017 we will monitor accordingly Potential of other jurisdictions asking for same agreements and multi-lateral work ongoing in the FATF/OECD The debate over public registers in the international community continues! Legislative amendments to allow tax authority direct access to information on the register reduce admin on TIEA requests Register of Directors is going to be centrally held and will be formed over the course of 2018 will be held privately at commencement

27 Moving Forward Together Achieving the Island s commitment Devote adequate resource to the task Continued outreach and support TCB Seminar 15 May Registry API launch (15 19 May) Walk-in clinics Collaboration portal access [registryapi@jerseyfsc.org]

28 Follow us Like us at Jersey Financial Services Commission Follow us at Jersey Financial Services Commission Julian Lamb Director of Registry