MONEYVAL has called on Guernsey to strengthen its fight against money laundering, particularly in investigation, prosecution, and conviction efforts. While praising the island’s risk awareness and sanctions enforcement, the report raises concerns about law enforcement’s limited use of financial intelligence and the quality of suspicious activity reports (SARs).
Key Points:
- MONEYVAL highlights Guernsey’s strong risk assessment and effective financial sanctions regime.
- Weak enforcement: Limited prosecutions and convictions for money laundering.
- FIU praised for high-quality intelligence, but law enforcement is not utilizing it effectively.
- SAR quality remains a concern—raising questions about reporting standards.
- Next review in May 2027 under MONEYVAL’s follow-up process.
Short Narrative:
Guernsey, a well-known offshore financial center, has received mixed reviews from MONEYVAL. While its Financial Intelligence Unit (FIU) is recognized for producing strong analytical reports, these reports are underutilized by law enforcement, limiting their impact on money laundering investigations. Moreover, the quality of suspicious activity reports (SARs) remains questionable, raising doubts about the effectiveness of compliance efforts. Despite its strong understanding of AML risks and robust sanctions regime, MONEYVAL urges Guernsey to convert its financial intelligence into real enforcement actions.
Actionable Insight:
MONEYVAL’s findings indicate that Guernsey’s AML framework looks strong on paper but is falling short in enforcement. Financial institutions, compliance officers, and law enforcement must bridge this gap to avoid reputational damage and potential regulatory repercussions.
Call for Information:
Do you have insights into Guernsey’s AML enforcement challenges? Have you encountered issues with SAR reporting? FinTelegram wants to hear from you! Share your information confidentially.
