Consultation on proposed enhancements to the AML/CFT/CPF Handbook

1 Executive summary

1.1 Overview

1.1.1 This consultation paper (CP) seeks feedback from industry on proposals to enhance the Handbook for the detection and prevention of money laundering, the countering of terrorist financing and the countering of proliferation financing (Handbook). 

1.1.2 There are two key drivers to the proposed enhancements covered within this CP: 

• clarificatory changes as part of our measured and proactive response to MONEYVAL Recommended Actions 
• enhancements and improvements to the Handbook to improve usability and reduce time/effort in application 

MONEYVAL Recommended Actions (Handbook related only)

1.1.3 MONEYVAL Recommended Actions (Recommended Actions) were identified across all agencies including the JFSC. In November 2024, we issued the JFSC MONEYVAL Action Plan (Action Plan) detailing our response to the JFSC-related Recommended Actions. 

1.1.4 The Action Plan included a number of actions where the understanding of and approach to complying with Handbook obligations was inconsistent. This consultation is our response to those actions through enhancements to specific, targeted sections of the Handbook. 

1.1.5 The outputs of the response noted in 1.1.4 are primarily clarificatory amendments to the Handbook. Having reviewed the relevant sections of the Handbook, we concluded that the required guidance was largely already present. However, industry could benefit from further refinement and clarification to avoid the inconsistency in application, as noted by the Recommended Actions. 

Enhancements to improve clarity and usability

1.1.6 This process has provided an opportunity to streamline and improve the clarity of relevant sections of the Handbook, aiming to make it more accessible, thereby better supporting industry to comply with their obligations. 

1.1.7 Whilst we have drafted comprehensive enhancements to the Handbook, we are collaborating with industry to align, simplify and clarify expectations. We also aim to leverage industry experience and working practices by incorporating into the guidance existing actions and work already undertaken by industry to reduce the operational impact of the proposed changes. 

1.1.8 While this consultation is focussed on specific sections of the Handbook, we welcome any additional feedback on improvements that could be made to the wider Handbook, as part of this consultation process.

Read our full consultation paper.