Recent rulings in Guernsey: Key Compliance Lessons

Key Compliance Takeaways:

1. Holding Sufficient Information on UBOs and Settlors:

   
   

   It is crucial to maintain comprehensive information about Ultimate Beneficial Owners (UBOs) and Settlors, particularly regarding their Source of Funds (SOF) and Source of Wealth (SOW). This information is vital for due diligence and risk assessment processes.

2. Annotated Google Searches:

   
   

   Conducting thorough Google searches and ensuring that any matches are properly annotated can help in identifying and verifying the background of clients and related parties.

   
   

3. Control by Other Means:

   
   

   It's essential to assess whether individuals who are not officially listed as controllers might still exert significant control over a structure. This hidden influence needs to be identified and managed appropriately.

4. Client Agreements:

   
   

   Maintaining signed client agreements on file is fundamental. Additionally, it's important to demonstrate that terms and conditions have been clearly communicated and agreed upon by clients.

5. Periodic Risk Assessments:

   
   

   Regular risk assessments are necessary to identify and mitigate potential risks. These assessments should be documented and revisited periodically to ensure ongoing compliance.

6. Transaction Oversight:

   
   

   A thorough understanding and oversight of transactions are imperative. This includes scrutinising the nature and purpose of transactions to ensure they align with the client's profile and declared activities.

7. Timely Reporting to GFSC:

   
   

   Promptly informing the Guernsey Financial Services Commission (GFSC) of any areas of concern related to a licensee is crucial. This proactive approach helps in maintaining transparency and regulatory compliance.

8. Tracking Post-Visit Commitments:

   
   

   Any commitments made by the licensee following an on-site visit should be tracked meticulously until completion. This ensures that the licensee adheres to agreed-upon improvements and regulatory expectations.

These recent rulings serve as a reminder of the importance of diligent compliance practices. By focusing on these key areas, businesses can enhance their compliance frameworks and avoid similar enforcement actions.

Full Articles for Reference:

• Trident Trust Company (Guernsey) Limited: GFSC News on Trident Trust Company and Mr Mark Wilson Le Tissier, Mr Ryan Daniel Dekker, and Mrs Boonyasinee (“Kwan”) Queripel

• Equiom (Guernsey) Limited: GFSC News on Equiom (Guernsey) Limited