The JFSC has issued a public statement in relation to ‘significant and material contraventions’ of Jersey’s regulatory framework, by Jersey Post, in respect of its money service business activities.
Jersey Post Limited (JPL) has agreed to settle with the JFSC in this regard.
Between January 2019 and December 2022 (Relevant Period), the Board of JPL was unable to demonstrate adequate knowledge of the regulatory requirements and over-relied on JPL’s compliance function to ensure JPL was compliant, despite the compliance function not operating effectively.
The JFSC’s investigation was limited to the regulated activities during the Relevant Period and did not extend to JPL’s wider postal operations.
In failing to organise and control its affairs effectively for the proper performance of its business activities, JPL was left vulnerable to significant financial crime risk which posed a material risk to the JFSC’s guiding principles.
The JFSC has issued a public statement outlining the findings of its investigation.
Kerry Petulla, Executive Director of Enforcement, Intelligence and Financial Crime of the JFSC commented: “Notwithstanding the regulatory activities were only a small part of JPL’s business, during the Relevant Period, JPL is considered to have operated ineffectively in discharging its regulatory responsibilities contravening the regulatory requirements, making it liable to a civil financial penalty.
“Due regard must be given to Article 21B(3)(e) of the Commission Law which requires the JFSC to consider the potential financial consequences to JPL, but also to third parties, such as customers. After careful consideration, the JFSC determined it reasonable and proportionate to conclude on a zero penalty.
“All boards of supervised firms should ensure they comply with their legal and regulatory obligations even in circumstances where it forms only a small part of their overall business.”
Mark Siviter, Chief Executive Officer of JPL commented: “JPL historically offered a wide range of financial services products at its Post Office branches. Its compliance with finance industry regulations fell below the required standard for a period of time.
“There is no suggestion that customers suffered any losses. JPL regrets what occurred, has an entirely new board and has made significant changes to its product offering, and its compliance procedures. With these enhancements, JPL is able to continue providing its remaining regulated service, bureau de change, which is a much needed service for islanders.”
