Guernsey providing regulatory certainty on application of electronic CDD

Guernsey providing regulatory certainty on application of electronic CDD
30.01.2019 08:00 am

Guernsey providing regulatory certainty on application of electronic CDD

Compliance , Regulatory Standards

Speaking in London today, at a Guernsey Finance seminar showcasing Guernsey’s global leadership in application of technology in financial services with the introduction of the Electronic Agents Ordinance 2019, the Guernsey Financial Services Commission outlined an approach to provide greater regulatory reassurance in the application of electronic CDD.

“The GFSC has always been supportive of the safe secure exploitation of technology. We are happy to work with all stakeholders to look to develop an approach that creates greater certainty for providers deploying electronic AML. The introduction of a revised AML handbook provides a welcome opportunity for us to make clear our commitment to ex ante discussions over the deployment of technology in the AML process,” said Emma Bailey, Director of Authorisations and Innovation at the GFSC, who spoke at the event.

The GFSC published a new anti-money laundering handbook late last year which offers an opportunity for the island to provide clarity and confidence in the supportive nature of the regulatory regime to encourage greater market-based provision.

Dr Andy Sloan, Deputy Chief Executive, Strategy, at Guernsey Finance, said that the development was to be welcomed. 

“Certainty, clarity and confidence of the regulatory approach are key for the application of technology and key to its widespread adoption. It is great to see, among other things, the GFSC helping to create these conditions to support the widespread adoption of technology-based AML solutions in Guernsey,” he said.

“Our strategy is to support a market-based approach to the application of technology in the AML arena.  We are fortunate to be home to some of the market’s leaders in the provision of technology-based AML services to funds and fiduciary sectors. 

“It’s a point possibly under-appreciated, but Guernsey has been open to the exploitation of technology in financial services, and has many examples of excellence, including the world’s first commercial deployment of blockchain in private equity market by Northern Trust, the market-based provision of electronic CDD services from The ID Register, and the world’s first listing on a regulated exchange of notes digitised on a blockchain by Solidum Re.”

Also at the seminar in London, lawyer Stephen Ozanne, Senior Associate at Walkers, provided a briefing on the impact and potential of the island’s recently-lodged ”smart contracts” and “electronic agents” legislation.

The lodging of the Electronic Transactions (Electronic Agents) (Guernsey), 2019, Ordinance earlier this month in the island offers greater certainty as the use of artificial intelligence and distributed ledger technology grows. It will boost confidence and enable adopters of technology solutions to use Guernsey.

The laws of most jurisdictions do not yet explicitly address electronic agents. Guernsey’s move is being seen as an important development in progressing the island’s digital ambitions, and positioning Guernsey law as the international law of choice for commercial contracts for those seeking to use smart contract technology.

Related News

Britons Embrace Biometrics But Over Half Will Abandon Applications If Not Fully Digital

Since the start of the COVID-19 outbreak, much focus and value has been put on contactless and online interactions – particularly in the financial sector. New research... Read more »

Financial services organisations are not prioritising compliance in their modernisation efforts – new report from Advanced reveals

Just 6% of financial services organisations say it’s essential for them to modernise their legacy systems to meet current regulatory and legislative demands. This surprisingly... Read more »

NICE Actimize’s AML Solutions Chosen by Rakuten Securities to Improve Operational Efficiencies and Reduce Compliance Risk

NICE Actimize, a NICE (Nasdaq: NICE) business and the leader in Autonomous Financial Crime Management, has been chosen by Rakuten Securities Inc., a major... Read more »

FIS delivers “EPIC” productivity and automation tools for managing a remote workforce

Financial technology leader FIS™ (NYSE: FIS) today announced Enterprise... Read more »

Moorwand inks deal with TWIGA Wallet for new card offering

Moorwand, which aims to transform compliance into an enabler of innovation, has been... Read more »

Citi's digital channels play a pivotal role in client contingency situations

Citi’s Treasury and Trade Solutions (TTS) has expanded the reach of the CitiDirect BE® Digital Onboarding platform, making it available in 37 countries and... Read more »

Free Newsletter Sign-up
+44 (0) 208 819 32 53 +44 (0) 173 261 71 47
Download Our Mobile App
Financial It Youtube channel