Julian Lamb - Jersey Financial Services Commission

1. CRF Hong Kong
Central Register of Beneficial Ownership
7 March 2017 (Session 1)

3. “A good plan today is better
than a perfect plan
tomorrow”
-Proverb-

4. › Agenda
Julian Lamb
Jersey Financial Services
Commission (JFSC)
› Jersey policy - ‘Its Genesis’
› JFSC role and Registry
roadmap
› Technical roadmap,
Registry portal and API
› Summary

5. Jersey Policy

6. › International Standards and Global Initiatives
› The Government committed to ensure an appropriately regulated
financial services industry taking a proportionate risk-based approach in
order to uphold our reputation and accountability to our business
partners while ensuring that we remain competitive
› Transparency of beneficial ownership of corporate and legal entities has
recently been headline news around the world
› Jersey recognises that beneficial ownership transparency is a critical
factor preventing the abuse of the global financial system for laundering
the proceeds of crime and the financing of terrorism.

7. › Beneficial Ownership – Jersey Regime
› Jersey has had a central register of beneficial ownership since 1989, and that is combined with the
regulation of Trust and Company Service Providers (TCSPs) ensuring oversight of those who form and
administer corporate and legal entities in Jersey which together ensures compliance with the international
standard of having available adequate, accurate and current beneficial ownership information. This
information is exchanged with law enforcement and tax authorities, on request, worldwide.
› Jersey has recently been assessed by MONEYVAL and a report was published earlier this year which
included a clear statement on the international recognition of Jersey’s leading position on beneficial
ownership transparency.
› In addition to the comments made by MONEYVAL, Jersey’s regime concerning transparency of beneficial
ownership has been recognised by the IMF and the World Bank in its project under the Stolen Assets
Recovery Initiative (“StAR”) - “The Puppet Masters. How the Corrupt Use Legal Structures to Hide Stolen
Assets and What to Do About It.”

8. › Agreement with the UK
Immediately prior to the London
Anti-Corruption Summit earlier this
year, Jersey signed an agreement
with the United Kingdom to
enhance exchange of beneficial
ownership information between
the law enforcement authorities
The agreement also underlines our
continued commitment to law
enforcement cooperation between
the Governments of Jersey and the
United Kingdom

9. › Commitment Requires Change
Our commitment to comply with enhanced international
standards and the agreement with the UK requires us to make a
number of changes to our domestic regime in two areas:
a) To further ensure the updating of beneficial ownership information
held at the Companies Registry by Jersey corporate and legal entities,
where those entities are administered by a TCSP, and the TCSP
becomes aware of a change of beneficial ownership;
b) The introduction of a register of directors for Jersey and whether that
register should be held publically or privately.

10. › Implementing Change
› Legislative amendments to implement the policy will be
brought to the States Assembly in the first half of 2017 for
adoption
› The policy must come into force by 30 June 2017
› Technology should help us achieve our aims with more
success – and that is why we are engaging with you

11. JFSC Role

12. › Project Success – What We Need to do to
Accord with the Exchange Notes

13. JFSC Change
Programme

14. › Registry Roadmap

15. Use of Existing
Infrastructure

16. › Use of the Existing Registry Systems (1)
›Easy Company Registry (ECR)
›New Online forms:
› C23 Special resolution
› C50 Public company annual report
and accounts
› C51 Prospectus
› C74 Online incorporation non-TCBs
› C75 Online incorporation TCBs
›P75 Partnership setups
Paper (if all else is exhausted)
Benefits
No paper (No delivery, printing costs and
scanning costs)
Certificates sent electronically (The
Registry will no longer (from 1 Jan 2017)
produce hard copies, only upon request
(£))
Speed of transaction

17. › Use of the Existing Registry Systems (2)
› Easy Company Registry (ECR)
› Online forms:
› C20 2017 Annual return including BO
statement (C17S)
› C17S BO statement to be used between
1 January – 30 June 2017
› C17a For Changes for TCSPs (TCBs)
› C17b For Changes for non TCSPs
administered companies.
Paper (if all else is exhausted)
Benefits
No paper
Choice of delivery
Ease of use

18. So, What's New?

19. › Changes to COBO Consents
› Replacement consents from 1.1.2017
› Amended wording
TCBs (changes to require
updating on an on-going basis):
› Not prior approval
› Notification within 21 days of
knowing of the change
› Non TCBs (no change but
improved process):
› Prior approval retained
› Deemed notification applied
within 21 days.
Process
7,900 replacement COBO consents issued to non TCB
administered companies from 1 January 2017.
TCB administered companies - new COBO consents
delivered with annual return receipts (existing
process).
More complex COBO consents (mostly funds and
mainly partnerships) to be reviewed between 1 Jan
and 30 June 2017.
3,000 SPVs to be reviewed but article 2 consents
usually separate from additional conditions.

20. › Changes to Registry COBO Forms
› Amended C2a
› Amended C17 (s, a & b) Benefits
Consistent through all forms
More user friendly – particularly activity
section
Target audience focused
Reflects the three tier test
They are not perfect!

21. Three Tier Test

22. › Three Tier Test
›#Ownership
›#Other means
›#Position held

23. Time Lines and
Building Blocks

24. › Indicative 18 Month Timeline
›#Statement
›#6months
›#30June2017

25. Technical Roadmap
and Impact

26. › Technical Architecture
Data/Reporting
Dynamics
NAV
Finance
SharePoint
EDRMS Collaboration Web Content
Intranet Internet
CRM
Regulatory
Services
Enforcement HR
Registry Platform
Online
Portal
Registry
Services
Functions & Services
Platforms
Data Warehouse

27. › API Services
Security Interests
Register
January 2014
Beneficial Ownership
System
February 2017
New Registry
Platform
2018

28. › API Registration and Approval
› Registration in January for Users and Developers
› Access to development API’s and support early Q1
› Certification programme
›All API users will have to complete a set of approval tests before live access

29. › Registry Portal Component
Access controls Electronically
certified documents
Single sign-on Help guides
Secure communicationElectronic filingRegistry search

30. › Companies Registry API
Standard API Advanced API

31. Summary of Meeting
and Actions

32. › TCB Action Timeline

35. “A good plan today is better
than a perfect plan
tomorrow”
-Proverb-

36. Follow us at @JerseyFSC
Like us at Jersey Financial Services Commission
Follow us at Jersey Financial Services Commission
Julian Lamb
Deputy Registrar and Director of
Companies Registry
j.lamb@jerseyfsc.org