Corporate Criminal Liability For Failure To Prevent Money Laundering

On 28 January 2022 the Government of Jersey launched a consultation, which closes on 21 February 2022, regarding proposals to introduce a new corporate criminal offence for any financial services business (FSB) which fails to prevent money laundering and terrorist financing.

This offence would be introduced by way of amendment to the Proceeds of Crime (Jersey) Law 1999 (POCL) and is driven by a desire to overcome difficulties with the identification doctrine. Currently, the criminal act of money laundering can only be attributed to an FSB where the individual(s) committing the offence represent the directing mind and will of the FSB. Complex corporate structures therefore make prosecution more difficult; and the practice of layering by criminals has become common. However, the new failure-to-prevent  offence would mean that once the offence of money laundering or financing terrorism is established, to the criminal standard (beyond reasonable doubt), then it is