Guernsey publishes strategy on combatting financial crime

Posted: 03/01/2024

As part its commitment to preventing and eliminating money laundering, terrorist financing and the financing of proliferation of weapons of mass destruction (financial crime), Guernsey has published a national strategy to combat financial crime.

It has also published a report on the findings of Guernsey's second National Risk Assessment (NRA) of the money laundering and terrorist financing risks presented by individual sectors and products within the jurisdiction, and the jurisdiction's first assessment of its risks in relation to the financing of proliferation of weapons of mass destruction.

The national strategy sets out a vision; risk assessment and risk appetite statement; and description of the bailiwick's strategic priorities (pillars) for the implementation of the FATF standards.

The vision provides the overall direction of travel while the risk appetite defines what risks are acceptable and which are not. Together, the vision and the risk appetite inform the strategic pillars.

National Risk Assessment

Guernsey has carried out its second NRA of the money laundering and terrorist financing risks presented by individual sectors and products within the jurisdiction. 

The first NRA (report published in January 2020) was based on an International Monetary Fund methodology. The second furthers the knowledge and findings of regional and local developments since then.

In addition, the Bailiwick of Guernsey has carried out its first assessment of the risks of financing of proliferation of weapons of mass destruction.

As with the first NRA, the finding of the second NRA with regard to money laundering risks is that, as an international finance centre with a low domestic crime rate, Guernsey's greatest money laundering risks come from the laundering of the proceeds of foreign criminality.

The money laundering risks from domestic criminality, while much lower, primarily arise from drug trafficking and fraud.

Also consistent with the first NRA, the finding of the second NRA with regard to terrorist financing risks is that the greatest risks come from the jurisdiction's cross-border business being used to support foreign terrorism, by funds being passed through or administered from Guernsey.

However, this risk is much lower than the money laundering risks. The assessment of the risks of financing of proliferation of weapons of mass destruction finds that the risks are the same or lower than the jurisdiction's terrorist financing risks.

• The national strategy can be found here; the report on the second NRA can be found here


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