How we will deliver our strategy - our 2022 core workstreams

Enhancing and simplifying our regulatory toolkit

Jersey has a complex legislative, handbook and guidance framework underpinning its regulatory toolkit. Feedback from Industry is consistent, that it can be hard to navigate and understand. We agree.

As a result, we are prioritising, streamlining, and enhancing our guidance notes and handbooks. Making them simple and clear needs to be the basis of our approach for both existing and new regimes.

This work will be a foundational element for facilitating business integrity and we have made good progress in 2021 on the simplification of our Outsourcing Policy and the consolidation of our AML/CFT Handbooks.

What we will do:

What we will deliver:

The work will provide Industry and our supervisory teams with a more straightforward regulatory framework and lay the foundations for increased digitalisation of our handbooks in 2023.

Fighting and preventing financial crime together

What we will do:

An effective regulatory framework is also essential for protecting Jersey’s status as a competitive, well regulated International Financial Centre. It strengthens Jersey’s attractiveness to well run businesses. A key aspect of this is ensuring that we support Industry in their understanding of, and adherence to, the evolving requirements of International Standards Setters such as FATF. To do this we will be:

• delivering increased Industry engagement and outreach across a multi-channel strategy
• continuing enhancement of our risk based supervisory activity
• preparing for forthcoming international assessments
• ensuring technical compliance with international standards
• actively involved in the updating and revising of the National Risk Assessment (NRA)

What we will deliver:

The work will provide Industry and our supervisory teams with a more straightforward regulatory framework and lay the foundations for increased digitalisation of our handbooks in 2023.

Investing in our technology and data analytics

What we will do:

Building on the work delivered in 2021 with the launch of the new Registry platform, myRegistry, and our re-designed Supervisory system, we will continue to capitalise on opportunities to secure efficiencies and increase our effectiveness. By migrating more of our systems to the cloud we will increase our resilience and gain access to better data, processes and security capabilities.

This work will be completed in conjunction with our data strategy and expansion of our adoption of Lean methodologies. Supported by our Project Management Office, subject matter experts from within each of our divisions will champion the ongoing review and improvement of our operations and improve our use of the data we gather and increase our efficiency and effectiveness.

A significant area of focus will the deployment of automated vetting activities to remove manual processing, reduce risk and improve efficiency. This will allow us to develop in line with increasing international standards in a cost efficient manner for Industry.

We have also engaged with a specialist third party to conduct research to identify perceived barriers to the adoption of new technology by Jersey financial services institutions. This work will assist us in targeting specific actions to address those barriers and provide clear and effective guidance to support innovation.

What we will deliver:

We will increase our operational resilience and efficiencies, freeing up capacity to assist with the increasing transactional volumes observed in 2021 and to support our expanded regulatory remit.

Enhancing our regulatory effectiveness

What we will do:

We have committed to adopting a risk-based approach for how we supervise businesses and made significant progress in this regard.

Risk needs to be further embedded throughout all of our work and we will be:

• Refining the way money laundering/terrorist financing (ML/TF) risk is assessed by our risk model. This will align with the latest guidance on risk-based supervision from the Financial Action Task Force (FATF).
• Widening the scope of our risk model to incorporate additional sectors, for example virtual asset service providers (VASPs) and insurance and general insurance mediation businesses (GIMB).
• Continuing to collect and analyse the data we collect in our risk model to identify businesses that may need enhanced supervisory attention.
• Utilising our risk model efficiently to ensure we allocate resources to the areas of highest risk.
• Expanding the remit of our Registry team to commence Registry supervisory activity such as vetting and undertaking supervisory visits to validate data submitted to our registers.

What we will deliver:

This work will make us a more effective regulator and will modernise the regulatory regime for new business sectors, such as VASPs. It also ensures more engagement with Industry through ongoing assessments and enables the continuous review and evolution of our approach. The immediate test for this work will be our performance in international assessments, such as the forthcoming MONEYVAL assessment in 2023. To that end, enhancing regulatory effectiveness will help safeguard the Island’s reputation.

People Strategy

What we will do:

Our staff are at the core of what we do, so it is essential that we recruit and retain great talent. Our People Strategy will focus on enhancing the quality of our internal engagement and ensuring that we are continuously developing our people and building the skills we need for the future.

What we will deliver:

This will be a critical component to how we build a high performance culture, fostering a growth mind-set and providing staff with the support and tools they need to enhance their careers.