Regulatory Alerts2020-11-23
Financial Services Businesses Instruction (Number 14) Business from Sensitive Sources - Iran
The Guernsey Financial Services Commission issued Instruction Number 14 under the Criminal Justice (Proceeds of Crime) Law to address urgent money laundering and terrorist financing risks from Iran. This directive requires financial services businesses to immediately report any business relationships or transactions involving Iranian banks, their branches, subsidiaries, or the Central Bank of Iran. The instruction follows renewed calls from the Financial Action Task Force and coordinated actions by HM Treasury to protect the integrity of the international financial system.
INSTRUCTION (NUMBER 14) FOR FINANCIAL SERVICES BUSINESSES BUSINESS FROM SENSITIVE SOURCES 22 November 2011 This Instruction is made under section 49(7) of the Criminal Justice (Proceeds of Crime) (Bailiwick of Guernsey) Law, 1999. The Financial Action Task Force has made repeated calls for jurisdictions to apply effective counter-measures to protect their finance sectors from money laundering and financing of terrorism risks emanating from Iran. The FATF renewed these calls with urgency on 28 October and noted its particular concern about Iran’s failure to address the risk of terrorist financing and the serious threat this poses to the integrity of the international financial system. HM Treasury in the UK has coordinated action within the British Isles in relation to Iranian banks. ACTION TO BE TAKEN BY FINANCIAL SERVICES BUSINESSES In light of the foregoing, financial services businesses must immediately advise Kevin Bown, the Commission’s Deputy Director of Intelligence Services, of any business relationships and transactions with any Iranian banks, including their branches and subsidiaries, or the Central Bank of Iran.