Why are Charities (Non Profit Organisations) now regulated in Jersey?

On Wednesday (22nd March) the JFSC released an update announcing they will be assessing NPOs on their obligation to keep a record of significant donors, which can be found here. This got me thinking again of a conversation I’ve had many times over the last few months asking why they are now regulated and if it is really needed.

The short answer is to combat money laundering, terrorist financing and proliferation financing. The finance industry has always acknowledged the risk that charities can be abused for this. The bedrock of our anti-ML, Counter-TF and Counter-PF regime is to prevent the real harm that is caused from crime and allowing those funds access to the financial system.

It’s worth mentioning that the Government of Jersey and the Jersey Financial Services Commission have taken measures to ensure only the more exposed are affected by regulation. Not all NPOs are caught under the new regulations. To be caught, a NPO needs to raise AND disburse funds of over £1000 outside of the UK. This would make you a “prescribed NPO”.

For anyone involved in a NPO that is caught, the JFSC have updated their AML/CFT/CPF handbook to have a section to provide rules and guidance. For anyone is familiar with these controls from a finance background, it is a toned down version and is aiming to be practical for the NPOs to achieve.

handbook-section-17.pdf (jerseyfsc.org)

If you’re involved in an NPO and need a bit of guidance, please feel free to reach out to us at Redwood Group. I’d be more than happy to go for a coffee and chat through the issues you might be facing.