United Nations Convention against Corruption · Renny Mendoza 1 Institutions consulted: ... Since the introduction of dedicated anti-corruption legislation in 2003 there has only

United Nations Convention against Corruption

UK Crown Dependency - The Bailiwick of Guernsey

Assessor:

Comments:

United Kingdom of Great Britain and Northern Ireland

24/11/2017

Renny Mendoza

Date of creation:

Assessor Position: International Policy Advisor - Joint Anti-Corruption Unit

Country:

Self-assessment Name:

Completed self-assessment checklists should be sent to:

Corruption and Economic Crime SectionDivision for Treaty AffairsUnited Nations Office on Drugs and CrimeVienna International CentrePO Box 5001400 Vienna, Austria

Attn: KAMBERSKA Natasha

Telephone: + (43) (1) 26060-4293Telefax: + (43) (1) 26060-74293E-mail: [email protected]

3.0.0.15Release:

A. General information

A. General information

1. General information

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Focal point:

Renny Mendoza

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Institutions consulted:

See UK submission.

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Please provide information on the ratification/acceptance/approval/accession process of the UnitedNations Convention against Corruption in your country (date of ratification/acceptance/approvalof/accession to the Convention, date of entry into force of the Convention in your country,procedure to be followed for ratification/acceptance/approval of/accession to internationalconventions etc.).

See UK submission.

3

Please briefly describe the legal and institutional system of your country.

See UK submission.

4

In a separate communication addressed and e-mailed to the secretariat ([email protected]),please provide a list of relevant laws, policies and/or other measures that are cited in the responsesto the self-assessment checklist along with, if available online, a hyperlink to each document and, ifavailable, summaries of such documents. For those documents not available online, please includethe texts of those documents and, if available, summaries thereof in an attachment to the e-mail. Ifavailable, please also provide a link to, or the texts of, any versions of these documents in otherofficial languages of the United Nations (Arabic, Chinese, English, French, Russian or Spanish).Please revert to this question after finishing your self-assessment to ensure that all legislation,policies and/or other measures you have cited are included in the list.

See UK submission.

5

Please provide a hyperlink to or copy of any available assessments of measures to combatcorruption and mechanisms to review the implementation of such measures taken by your countrythat you wish to share as good practices.

See UK submission.

6

Please provide the relevant information regarding the preparation of your responses to the self-assessment checklist.

See UK submission.

7

Please describe three practices that you consider to be good practices in the implementation of thechapters of the Convention that are under review.

See UK submission.

8

Please describe (cite and summarize) the measures/steps, if any, your country needs to take,together with the related time frame, to ensure full compliance with the chapters of the Conventionthat are under review, and specifically indicate to which articles of the Convention such measureswould relate.

See UK submission.

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11/01/2018 Page 2 of 125UK Crown Dependency - The Bailiwickof Guernsey

United Kingdom ofGreat Britain andNorthern Ireland

II. Preventive measures

5. Preventive anti-corruption policies and practices

2. Paragraph 1 of article 5

1. Each State Party shall, in accordance with the fundamental principles of its legal system, develop and implement or maintain effective, coordinated anti-corruption policies that promote the participation of society and reflect the principles of the rule of law, proper management of public affairs and public property, integrity, transparency and accountability.

Is your country in compliance with this provision?1520

(Y) Yes0

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Please describe (cite and summarize) the measures/steps your country has taken, if any, (or isplanning to take, together with the related appropriate time frame) to ensure full compliance withthis provision of the Convention.

Guernsey has developed, implemented and maintained anti - corruption policies which areset out in 2 strategy documents and an asset recovery policy document (see nextsection). They were drawn up by government and the financial crime authorities, andwere based on quantitative and qualitative information, including statistics, caseexperience and information obtained from the private sector.

The policies are targeted at the possible involvement of Guernsey natural and legalpersons in corruption occurring elsewhere (although implementation measures such ascorporate governance requirements apply equally to domestic activity). This internationalfocus reflects Guernsey’s position as an international finance centre with no endemicdomestic corruption problems. The policies contain measures for addressing the twoaspects of international risk that have been identified. These are proceeds based risk, i.e.risk of proceeds of corruption generated abroad being located in, passing through oradministered in Guernsey, and activity based risk, i.e. risk of the businesses established,administered or financed in Guernsey having links to overseas activity where thecorruption risk is high and therefore making corrupt payments.

The authorities have regularly reviewed the assessment of Guernsey’s risk profile forcorruption and it is unchanged.

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Please provide examples of the implementation of those measures, including related court or othercases, available statistics etc.

In 2011 Guernsey developed a Foreign Bribery and Corruption Strategy. Its objectivesincluded the creation of a dedicated Anti-Bribery and Corruption Committee and improvedcoordination, capacity building and outreach.

In 2014 the government enacted an asset recovery policy which focussed in particular onthe recovery of the proceeds of corruption.

In 2016, the Foreign Bribery and Corruption Strategy was enhanced by a Focussed Anti

Bribery And Corruption Policy Framework for targeting focus and outreach at business

relationships and activities linked to high risk countries and sectors.

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Another example of implementation is the inclusion of corruption risk as a key factor in

the methodology used by the Registrar of Beneficial Ownership to apply a risk -based

approach to his oversight functions.

The Foreign Bribery and Corruption strategy, the Asset Recovery Policy, the Focussed Anti Bribery And Corruption Policy Framework and the Registrar of Beneficial Ownership’s methodology can be provided upon request.




2. Each State Party shall endeavour to establish and promote effective practices aimed at the prevention of corruption.


(Y) Yes0

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One of the actions in the Foreign Bribery and Corruption Strategy is to ensure effectivecompliance with relevant anti-bribery and corruption standards and measures. Varioussteps have been taken to promote this, including the following:

· Information on bribery and corruption is included in the Handbooks issued by the

financial services supervisor, the Guernsey Financial Services Commission.

· In 2012 Guernsey organised a major anti-corruption conference, where

presentations were given to the private sector by local and international speakers

(including representatives from the OECD, the World Bank and the UK

government).

· Since 2013 onwards, outreach on corruption has been routinely carried out by the

regulatory authorities in respect of the sectors they supervise.

In 2016 the government hired a research assistant to review Guernsey’s anti-corruption measures. This led to targeted outreach on bribery and corruption to financial services businesses and others, and also to more general outreach by placing detailed information on bribery and corruption on its website. The guidance includes recommendations on corporate governance for industry and third sector organisations.

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The information on the government website referred to above is available here: <https://www.gov.gg/article/156152/Bribery-and-corruption>.

Since the introduction of dedicated anti-corruption legislation in 2003 there has only been one known case of domestic corruption (which led to a successful prosecution that has just been upheld on appeal - details are available here: <http://www.guernseylegalresources.gg/article/157970/2017>). This indicates that understanding and compliance on anti-corruption issues is high. This is consistent with the findings of the regulatory authorities, who assess the extent to which the sectors they supervise understand and comply with their obligations to put in place anti-corruption measures.

Because of the international nature of Guernsey’s corruption risks, the authorities routinely compare data on suspicious activity reports (SARs) with that on incoming mutual legal assistance requests, to see if there are any inconsistencies between the two data sets which would indicate that the SAR regime is ineffective and therefore, by extension, would suggest a poor understanding about corruption by businesses. No inconsistencies

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had been identified in the period leading up to Guernsey’s 2016 Moneyval report and this is confirmed in the report (available here: <https://rm.coe.int/report-on-fourth-assessment-visit-anti-money-laundering-and-combating-/16807160f3> - see paragraph 742.)

The position has not changed since then.




3. Each State Party shall endeavour to periodically evaluate relevant legal instruments and administrative measures with a view to determining their adequacy to prevent and fight corruption.


(Y) Yes0

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Guernsey has an Anti-Bribery and Corruption Committee (see under Article 6 below) witha standing responsibility for reviewing the adequacy of legal instruments andadministrative measures to prevent and fight corruption. This covers a wide range ofareas, consistent with the fact that the Committee’s membership includes legal,regulatory, law enforcement and government representatives.

Its reviews take 2 forms. The first is in-depth formal reports provided by the Committeeto the wider AML/CFT authorities approximately every five years. The second isconsideration of specific issues in the interim as they arise (which may be operationally orin response to international developments), and this is done either by the Committeecollectively or by an individual authority represented on the Committee if the issue inquestion is only relevant to that authority.

In addition, the government is responsible for ensuring compliance with internationalstandards related to financial crime and periodically conducts reviews to assess this.

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The Committee issued a formal report in 2011 and updated it in 2016. These documentsare not available online but can be provided upon request.

An example of interim consideration of specific issues occurred in 2012, when theCommittee examined Guernsey’s anti-corruption framework to confirm that it included allnecessary elements for information gathering and sharing to permit Guernsey toparticipate fully in the Arab Forum on Asset Recovery. More recently, the Committeereviewed Guernsey’s criminalization of bribery to ensure that there were no problemsrelating to dual criminality. The conclusion was that the existing wording was adequatebut that the legislation could be enhanced. This is now being taken forward.

An example of a government review is referred to under Article 5.2.

Other aspects of the legal framework that have a bearing on the international corruption risks faced by Guernsey are also regularly reviewed and updated as necessary. A recent example is the introduction of a register of beneficial ownership of legal persons.

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4. States Parties shall, as appropriate and in accordance with the fundamental principles of their legal system, collaborate with each other and with relevant international and regional organizations in promoting and developing the measures referred to in this article. That collaboration may include participation in international programmes and projects aimed at the prevention of corruption.


(Y) Yes0

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Guernsey is an active member of the following organisations whose areas of responsibility

include measures to prevent corruption: Moneyval, the Camden Asset Recovery Inter-

Agency Network (CARIN), the Egmont Group and the Group of International Finance

Centre Supervisors (GIFCS). It also participates in the UNCAC Conference of States

Parties, the annual Cambridge International Economic Crime Symposium (Cambridge) and

meetings of the European Judicial Network, and regularly sends representatives to FATF

plenaries and working group meetings.

In addition, Guernsey has participated in the World Bank/UNDOC Stolen Assets Recovery

Initiative (StAR), the Arab Forum on Asset Recovery (including providing onsite training in

Egypt as part of the StAR initiative to assist the Arab Forum) and the Ukraine Forum on

Asset Recovery.

See also under 14.1.b below.

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In 2014 Guernsey played a leading role in producing a GIFCS Statement on asset recovery which included information on the proceeds of corruption. The Statement is available here: <http://www.gifcs.org/images/PositionAssetRecovery.pdf>

Guernsey has contributed to the StAR Best Practices Guide for Non-Conviction Based Forfeiture and participated in expert workshops leading to the creation of the Asset Recovery Handbook, the StAR study on Barriers to International Asset Recovery and a Transparency International publication available here: <http://www.transparency.org.uk/publications/empowering-the-uk-to-recover-corrupt-assets/>

Guernsey was a founder member of CARIN. In 2015 Guernsey held the CARIN presidency (the first non-EU jurisdiction to do so apart from the USA) and hosted the 2015 CARIN plenary. This included preparing case studies involving beneficial ownership and corruption for workshops. Further information is available here: <http://carin-network.org/annual-general-meetings> One of the objectives identified at the plenary was to assist the Organisation of American States to set up its own asset recovery network. Guernsey was actively involved in taking this forward and this led to the establishment of the ARIN CARIB Network, which had its first plenary meeting in 2017. Further information is available here: <http://www.cicad.oas.org/Main/AboutCICAD/Activities_eng.asp?IE=TT0915>

Guernsey representatives have also provided technical assistance on economic crime issues, including corruption, to developing countries on behalf of the World Bank and the

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Council of Europe.

See also under 14.1.b below.



6. Technical Assistance

The following questions on technical assistance relate to the article under review in its entirety.

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Please outline actions required to ensure or improve the implementation of the article underreview and describe any specific challenges you might be facing in this respect.

Guernsey will be participating in an UNODC Expert Working Group Meeting on Beneficial

Ownership Transparency (Puppet masters 2) in October 2017 and the inaugural Global Forum on

Asset Recovery in Washington in December 2017.

Guernsey will review whether policies specifically targeted at possible domestic corruptionissues are required, including wider outreach beyond business and third sectororganisations, after the completion of Guernsey’s national AML/CFT risk assessment in2018.

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Do you require technical assistance for the implementation of this article? If so, please specify the formsof technical assistance that would be required. For example:

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(NO) No assistance would be required0

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Is any technical assistance already being provided to you? If so, please provide a generaldescription of the nature of the assistance, including donor information.

None.

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6. Preventive anti-corruption body or bodies


1. Each State Party shall, in accordance with the fundamental principles of its legal system, ensure the existence of a body or bodies, as appropriate, that prevent corruption by such means as:

(a) Implementing the policies referred to in article 5 of this Convention and, where appropriate, overseeing and coordinating the implementation of those policies;

(b) Increasing and disseminating knowledge about the prevention of corruption.


(Y) Yes0

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Law Enforcement’s Economic Crime Division (ECD), comprised of the financial crime team,

the Financial Intelligence Service (Guernsey’s FIU) and the police, is the body responsible

for operational functions in respect of the prevention and detection of corruption. The

body responsible for non-operational functions, i.e. the oversight and co-ordination of

anti-corruption policies and increasing and disseminating knowledge about the prevention

of corruption, is the Anti-Bribery and Corruption Committee. This was established in 2011

as a specialist sub-committee of Guernsey’s AML/CFT Advisory Committee (the Advisory

Committee), which is the national strategic committee for dealing with financial crime.

The Anti-Bribery and Corruption Committee originally comprised senior representatives of

the ECD, the Attorney General’s chambers and the financial services regulator. Its

membership was later expanded to include government, following the appointment of the

government’s first Director of Financial Crime Policy.

The approach of the Advisory Committee in establishing the Anti-Bribery and Corruption

Committee was informed by consideration of a document entitled “Anti-Corruption

Strategies for Small Jurisdictions” issued by the Commonwealth Secretariat. This contains

a checklist of factors to look at when establishing and assessing an anti-corruption

agency. All of the executive and non-executive functions on that list are discharged, by

the law enforcement agencies and the Anti-Bribery and Corruption Committee

respectively.

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The Anti-Bribery and Corruption Committee is referred to on the government website (via a link under Article 5.2 above) and its establishment is confirmed in Guernsey’s 2016 Moneyval report, available here: <https://rm.coe.int/report-on-fourth-assessment-visit-anti-money-laundering-and-combating-/16807160f3> (see paragraph 100).

The Committee’s Constitution and Terms of Reference and accompanying Explanatory Memorandum can be provided upon request. The same applies to reports issued by the

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Committee.




2. Each State Party shall grant the body or bodies referred to in paragraph 1 of this article the necessary independence, in accordance with the fundamental principles of its legal system, to enable the body or bodies to carry out its or their functions effectively and free from any undue influence. The necessary material resources and specialized staff, as well as the training that such staff may require to carry out their functions, should be provided.


(Y) Yes0

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Members of the law enforcement agencies are fully independent in the discharge of their

functions. They are subject to policies and codes of practice to maintain impartiality and

integrity. All members, including the most senior, are recruited through open and

transparent selection processes involving written applications and interviews. All financial

investigators attend the UK NCA Financial Investigators Course and are subject to

continuous professional development and accreditation. This includes anti-corruption

training. They have access to a wide range of IT and other resources, including the UK’s

PNC and Joint Asset Recovery Database.

The other members of the Anti-bribery and Corruption Committee are senior experienced representatives of other organisations who are fully independent in the discharge of all of their functions and who discharge their functions as Committee members within their existing roles, which require them to undertake anti-corruption training. Therefore, no additional provision is required for their recruitment, remuneration, training and access to IT and other resources.

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Policies, codes of practice and documents relating to resources can be made available on request. The strength of the measures in place relating to resources, integrity and training of the law enforcement agencies and the other authorities represented on the Anti-Bribery and Corruption Committee is confirmed in Guernsey’s 2016 Moneyval report, available here: <https://rm.coe.int/report-on-fourth-assessment-visit-anti-money-laundering-and-combating-/16807160f3>. This awarded Guernsey a compliant rating (i.e. the highest rating) in this area (see Recommendation 30 in the compliance table in part IV).

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3. Each State Party shall inform the Secretary-General of the United Nations of the name and address of the authority or authorities that may assist other States Parties in developing and implementing specific measures for the prevention of corruption.


(Y) Yes0

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Has your country provided the information as prescribed above? If so, please also provide theappropriate reference.

N/A, as Guernsey’s status with the United Nations is not that of a State Party and it does not have a direct relationship with the United Nations.

See answer immediately above. Guernsey has a number of anti-corruption experts who could assist other States Parties in developing and implementing specific measures for the prevention of corruption, and would be happy to provide their contact details to the United Kingdom for onward transmission to the UN secretariat.

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None.

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None.

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7. Public sector


1. Each State Party shall, where appropriate and in accordance with the fundamental principles of its legal system, endeavour to adopt, maintain and strengthen systems for the recruitment, hiring, retention, promotion and retirement of civil servants and, where appropriate, other non-elected public officials:

(a) That are based on principles of efficiency, transparency and objective criteria such as merit, equity and aptitude;

(b) That include adequate procedures for the selection and training of individuals for public positions considered especially vulnerable to corruption and the rotation, where appropriate, of such individuals to other positions;

(c) That promote adequate remuneration and equitable pay scales, taking into account the level of economic development of the State Party;

(d) That promote education and training programmes to enable them to meet the requirements for the correct, honourable and proper performance of public functions and that provide them with specialized and appropriate training to enhance their awareness of the risks of corruption inherent in the performance of their functions. Such programmes may make reference to codes or standards of conduct in applicable areas.


(Y) Yes0

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When recruiting for any role, the government uses a set list of key criteria. When

shortlisting and interviewing, all candidates are scored against the key criteria. All

vacancies are required to be published along with a description of the role and the

experience necessary.

For senior roles which are potentially more vulnerable to corruption, the set criteria

include the demonstration of behaviour appropriate for role modelling ethics, integrity,

impartiality and the elimination of bias.

The salary scales for civil servants are defined by their level of seniority and are publicly

available. These are regularly reviewed in line with RPI. It is standard procedure that staff

will receive an annual increment (pay increase) until they reach the top of the pay point in

the grade attached to their role.

On induction to the States of Guernsey, all staff receive mandatory training appropriate to

their role. This includes a focus on the Code of Conduct, which deals explicitly with issues

surrounding corruption. Where sector-specific qualifications are required, training is

arranged and funded. Staff can also access a range of soft skills training, which is

centrally funded and available to all.

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cases, available statistics etc.

When recruiting, the government uses the SAP Success Factors system

(<https://www.successfactors.com/en_us.html>). This provides a prescriptive framework based on leading practices from thousands of implementations, and which is tailored to the needs of hiring and recruitment in the public sector.

With regard to pay, all civil service posts are HAY Evaluated (<http://www.haygroup.com/en/our-services/evaluate/>) by the government’s Remuneration & Benefits Officer, who is a qualified HAY Evaluator.

Salary scales are available here: <https://www.gov.gg/salaryscales>

Alongside training on the core values of the civil service, a range of staff Directives,

including a Conduct Directive, is sent to all new starters and available on the government

intranet. When staff commence work with the States of Guernsey, they sign an Appendix

2 (acceptance of terms and conditions) form that confirms they are signing up to these

Directives (as well as the terms outlined in their contract). They are also required to sign

an IT Acceptable use form and a Declaration of Secrecy form.

A guidance document, the Anti-Bribery and Corruption Guidance for States Members andEmployees, has also been issued which includes a section on recruitment andadvancement. This is available online via a staff portal and can be provided upon request.




2. Each State Party shall also consider adopting appropriate legislative and administrative measures, consistent with the objectives of this Convention and in accordance with the fundamental principles of its domestic law, to prescribe criteria concerning candidature for and election to public office.


(Y) Yes0

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Electoral procedure is governed by the Reform (Guernsey) Law, 1948. It has been amended many

times over the years to ensure that Guernsey’s electoral practices remain in line with modern

developments.

People may only stand for election if they -

· Are 20 years or over;

· Are ordinarily resident in Guernsey on the date of nomination as a candidate;

· Have been ordinarily resident in Guernsey for two years immediately before the

date

of nomination, or for five years in total at any time before the date of nomination;

· Have not been sentenced by a court in the UK, Channel Islands or Isle of Man to

imprisonment for a period of six months or more, whether suspended or not,

without the option of a fine, in the last five years.

The legislation also specifies that Government employees and defined public officers may

only take office as a Member of the States of Guernsey if they cease to be government

employees or public officers.

The Reform (Guernsey) Law, 1948, as amended, is available here: <http://www.guernseylegalresources.gg/CHttpHandler.ashx?id=71775&p=0>

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There is a publicly available information document explaining the criteria for candidature, which was issued for the first time in 2016. It is available here: <https://gov.gg/CHttpHandler.ashx?id=100148&p=0>

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3. Each State Party shall also consider taking appropriate legislative and administrative measures, consistent with the objectives of this Convention and in accordance with the fundamental principles of its domestic law, to enhance transparency in the funding of candidatures for elected public office and, where applicable, the funding of political parties.


(Y) Yes0

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Guernsey has no political parties and candidates run and campaign individually. The Elections Ordinance (2015) proscribes the limit of funding for campaigns. In accordance with the Ordinance, a candidate may, in the course of electoral campaigning, expend money or give value in money’s worth up to a maximum of £2,300. The Elections Ordinance, 2015 is available here: <http://www.guernseylegalresources.gg/CHttpHandler.ashx?id=99370&p=0>

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Guidance on funding is included in the information document referred to under Article 7.2 above.

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4. Each State Party shall, in accordance with the fundamental principles of its domestic law, endeavour to adopt, maintain and strengthen systems that promote transparency and prevent conflicts of interest.


(Y) Yes0

1522


The government has issued codes of conduct for politicians, civil servants and law enforcement officials, which require them to declare any potential conflicts of interest and to put the public interest above personal advantage, and which prohibit conducting duties without appropriate transparency. The codes also provide clear advice on what constitutes a conflict of interest and on what to do if unsure about whether or not a conflict of interest exists.

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The Code of Conduct for members of the States of Deliberation (Guernsey’s legislature and also its executive via a committee system), can be found here: <https://www.gov.gg/CHttpHandler.ashx?id=104054&p=0> (p. 135 to p.158)

In addition, the Rules of Procedure of the States of Deliberation require Members to register any private interests in the Register of Members’ Interests and to draw attention to any relevant interest in any proceedings of parliament. The Rules of Procedure are publicly available online and can be found here: <https://www.gov.gg/rulesofprocedure>.

Civil servants are bound by the Code of Conduct for Established Staff and the Conduct Directive, which requires any potential conflicts of interest to be declared. These are available online via staff portals and can be provided upon request.

Law Enforcement officials are bound by the Compromised Persons Policy and the Giftsand Hospitality Policy, which provide for the declaration of any interests and associationsthat may cause a possible conflict of interest to arise. The Compromised Persons Policyrequires that, should any interest or association that may be perceived to affectimpartiality be identified, the member of staff concerned will not deal with the incident orwork activity. It offers detailed guidance on how to identify a possible conflict of interest,and stresses Law Enforcement’s commitment to transparency and accountability. Thesepolicies are available online via staff portals and can be provided upon request.

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None.

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None.

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8. Codes of conduct for public officials


1. In order to fight corruption, each State Party shall promote, inter alia, integrity, honesty and responsibility among its public officials, in accordance with the fundamental principles of its legal system.


(Y) Yes0

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All public officials are bound by the Prevention of Corruption (Bailiwick of Guernsey) Law, 2003, which is available here: <http://www.guernseylegalresources.gg/CHttpHandler.ashx?id=71023&p=0>. Under section 3 it is an offence for a public official to act or refrain from acting for the purpose of corruptly obtaining a gift, consideration or advantage for himself or any other person.

The integrity of the States of Guernsey and civil servants is also addressed by the Codes of Conduct referred to under Article 7.4 above, which explicitly prohibit acts of bribery and corruption.

In addition to the Law Enforcement Gifts and Hospitality Policy and the Law Enforcement Compromised Persons Policy referred to under Article 7.4 above, measures specifically dealing with bribery and corruption for Law Enforcement officers and staff are provided in the Standards of Professional Behaviour and Misconduct, which mirror the UK Standards. These are available online via staff portals and can be provided on request

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Before taking office, politicians attend a mandatory induction programme in which they are briefed

on appropriate conduct and receive training on how to act in accordance with the government’s

value of selflessness, integrity, objectivity, accountability, openness, honesty, and leadership.

A Conduct Directive has been issued for all civil servants, which requires each member of staff to

abide by the Civil Service Code. Incoming staff are also provided with training on the Code and on

their obligations to act in accordance with the same values as those listed above.

Law Enforcement officials are provided with training on the ways in which they are vulnerable to

attempted bribery and corruption. The Gifts and Hospitality Policy explains what constitutes

bribery, and provides detailed guidance on what is and is not acceptable practice regarding the

acceptance of gifts and hospitality. Similarly, in recognition of the fact that Law Enforcement ‘s

investigatory functions inevitably involve contact with persons linked to criminality, the

Compromised Persons Policy provides detailed guidance on acceptable interactions with groups or

individuals that may present a particular corruption risk.

In order to prevent and detect corruption of any kind, the government has published logistical guidance for reporting concerns in the Whistleblowing Policy, which applies to all public officials. It is only available online via a staff portal but can be provided upon request.

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17. Paragraph 2 and 3 of article 8//

2. In particular, each State Party shall endeavour to apply, within its own institutional and legal systems,codes or standards of conduct for the correct, honourable and proper performance of public functions.

3. For the purposes of implementing the provisions of this article, each State Party shall, where appropriateand in accordance with the fundamental principles of its legal system, take note of the relevant initiatives ofregional, interregional and multilateral organizations, such as the International Code of Conduct for PublicOfficials contained in the annex to General Assembly resolution 51/59 of 12 December 1996.

Is your country in compliance with these provisions?1521

(Y) Yes0

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Please describe (cite and summarize) the measures/steps your country has taken, if any, (or isplanning to take, together with the related appropriate time frame) to ensure full compliance withthese provisions of the Convention.

The Code of Conduct for States Members referred to under Article 7.4 above covers all of the

issues generally recognised as relevant to correct, honourable and proper performance of public

functions, including conflict of interest, objectivity in conducting public business, the political

impartiality of the Civil Service, gifts and hospitality, bribery, trading in influence, use of

government facilities, declaration of interests, and confidential information.

The Civil Service Code referred to under Article 7.4 above is based on the International Code

of Conduct for Public Officials (annex to General Assembly resolution 51/59). It includes

provisions and guidance on: political impartiality, gifts and hospitality, confidential information,

objectivity in conducting public business, and conflict of interest.

The policies and standards applicable to Law Enforcement officials referred to underArticle 7.4 mirror the UK’ s Standards, and reflect the principles enshrined in the Council ofEurope Code of Police Ethics. They include provisions and guidance on: core values ofintegrity, professionalism, fairness and respect, vulnerability issues relating to corruptionand potential compromise, transparency, conflict of interest, and gifts and hospitality.

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In August 2016 there was an internal review of Guernsey’s anti-corruption regime,

including the effectiveness of the government’s various codes of conduct. It was found

that the codes met all national standards but that further guidance would be beneficial.

Therefore, in order to ensure that public officials fully comprehend the risks of bribery and

corruption, a guidance document, the Anti-Bribery and Corruption Guidance for States

Members and Employees, was issued for States of Guernsey politicians, civil servants,

and Law Enforcement officials, which provides guidelines in reference to the following:

· Bribery;· Possible inducements, including gifts and hospitality;· Facilitation payments;· Trading in influence;· Misuse of position;· Conflict of interest;· Embezzlement;

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· Public Procurement;· Recruitment and advancement;· Confidential information;· Transparency;· Whistleblowing.

These guidelines supplement the guidance provided in the Codes of Conduct. The Anti-Bribery and Corruption Guidance for States Members and Employees is available online via staff portals and can be provided upon request




4. Each State Party shall also consider, in accordance with the fundamental principles of its domestic law, establishing measures and systems to facilitate the reporting by public officials of acts of corruption to appropriate authorities, when such acts come to their notice in the performance of their functions.


(Y) Yes0

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There is guidance on this in the Codes referred to above. In addition, the government has

published a Whistleblowing Policy which requires the disclosure of the following by all

public officials:

“(a) professional or managerial malpractice including for example, abuse ofservice users or employees;

(b) criminal activity which has been committed or likely to be committed;

(c) miscarriages of justice;

(d) failure to comply with a legal duty;

(e) danger or concerns about health and safety including not complying withlegislation;

(f) damage or the risk of damage to the environment;

(g) failure to comply with any legal [or professional] obligation or regulatoryrequirements;

(h) financial irregularities including fraud or suspected fraud or mismanagement;

(i) embezzlement or misappropriation of property;

(j) offering, giving, soliciting or receiving bribes in any form within the Bailiwick ofGuernsey or abroad;

(k) the acceptance of facilitation payments;

(l) misuse of position or influence for personal advantage;

(m) trading in influence to secure undue favour

(n) showing undue favour over a contractual matter;

(o) negligence;

(p) breach of employee codes of conduct, rules and internal policies andprocedures;

(q) conduct likely to damage the reputation of the States, its Services orCommittees;

(r) unauthorised disclosure of confidential information;

(s) the deliberate concealment of any of the above matters.”

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The whistle blowing policy is available online via staff portals and can be providedupon request.

1525


In order to implement the Whistleblowing Policy, the government has appointed a

dedicated Whistleblowing Officer and Deputy Whistleblowing Officer to promote reporting

of wrongdoing and to investigate any concerns raised, and has established a confidential

and secure telephone hotline. To encourage reporting of suspicions, assurance is

included in the Policy that nobody who raises genuine concerns in good faith need fear

reprisals, even if they turn out to be mistaken.

The policy also cites the Prevention of Corruption (Bailiwick of Guernsey) Law, 2003 and states that in the instance of a breach of this law, concerns ought to be reported to the police. The legislation is available via a link under Article 8.1 above.

1




5. Each State Party shall endeavour, where appropriate and in accordance with the fundamental principles of its domestic law, to establish measures and systems requiring public officials to make declarations to appropriate authorities regarding, inter alia, their outside activities, employment, investments, assets and substantial gifts or benefits from which a conflict of interest may result with respect to their functions as public officials.


(Y) Yes0

1522


The Code of Conduct for States Members referred to under Article 7.4 above affirms the duty of

politicians to declare any private interests relating to their public duties and avoid any conflict of

interest, further stating that, should any conflict arise, it must be settled immediately and in the

public interest. It also includes a section titled “Possible inducements, including gifts and

hospitality” which prohibits the acceptance of any tangible or other inappropriate inducement and

which requires Members to abide by the Rules of Procedure of the States of Deliberation. The

Code is available via a link under Article 7.4 above.

The Rules of Procedure of the States of Deliberation referred to under Article 7.4 above require

politicians to declare any interests that might cause a possible conflict of interest to arise, including

those of their spouses and other close family members.

The Civil Service Code and the Conduct Directive referred to under Article 7.4 above

require any potential conflicts of interest to be declared.

The Compromised Persons Policy and the Gifts and Hospitality Policy for Law Enforcement officials referred to under Article 7.4 above provide for the declaration of any interests and associations which may cause a possible conflict of interest to arise.

1

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A form is provided for the purpose of declaring interests by politicians which requires information on a range of possible interests including, employment and other positions held, property, shareholdings, trusts and other assets. This information, together with information on voting records and attendance is published on the government website on the profile page for each individual member and is available here, together with historical declarations of interest etc.: https://www.gov.gg/parliament The Civil Service Code is enforced by the Established Staff Conduct Directive referred to under

Article 7.4 above which includes a section on private work, allowing it to be undertaken by civil

servants provided that it is not incompatible with their public work. Information is provided on

what constitutes inappropriate acceptance of gifts and hospitality and there is a register in which

gifts that are accepted are recorded, which is open to public inspection.

The Law Enforcement Compromised Persons Policy referred to under Article 7.4 aboveoffers detailed guidance on how to identify a possible conflict of interest, and stressesLaw Enforcement’s commitment to transparency and accountability. It states that where

1



there is a potential conflict, the officer in question will take no part in work or activity in thisarea.




6. Each State Party shall consider taking, in accordance with the fundamental principles of its domestic law, disciplinary or other measures against public officials who violate the codes or standards established in accordance with this article.


(Y) Yes0

1522


Complaints against States Members are dealt with by the States Members’ Conduct

Panel, which comprises a Chairman, a Deputy Chairman and eight ordinary members

appointed in writing by the Presiding Officer for a period of five years. Regulations

governing the Conduct Panel are established in the Rules of Procedure of the States of

Deliberation referred to under Article 7.4 and allow for a States Member to be formally

reprimanded, suspended, removed from a particular office or expelled.

Disciplinary Procedures for Established Staff are set out in the Disciplinary Procedures

Directive. This states that in the case of gross misconduct, such as an act of bribery or

corruption, the penalty will be dismissal without notice or payment in lieu of notice. The

Directive is available online via a staff portal and can be provided on request. .

Disciplinary measures for Law Enforcement officials are the responsibility of the Law Enforcement Professional Standards Department. The Compromised Persons Policy referred to under Article 7.4, which deals with the possibility of bribery and corruption, expressly highlights disciplinary action being taken for failure to comply with its provisions.

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No cases involving corruption have arisen to date, but there have been disciplinary proceedings on other matters that demonstrate the effective working of the system. Documents relating to these are not available online but can be provided on request.

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None.

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9. Public procurement and management of public finances


1. Each State Party shall, in accordance with the fundamental principles of its legal system, take the necessary steps to establish appropriate systems of procurement, based on transparency, competition and objective criteria in decision-making, that are effective, inter alia, in preventing corruption. Such systems, which may take into account appropriate threshold values in their application, shall address, inter alia:

(a) The public distribution of information relating to procurement procedures and contracts, including information on invitations to tender and relevant or pertinent information on the award of contracts, allowing potential tenderers sufficient time to prepare and submit their tenders;

(b) The establishment, in advance, of conditions for participation, including selection and award criteria and tendering rules, and their publication;

(c) The use of objective and predetermined criteria for public procurement decisions, in order to facilitate the subsequent verification of the correct application of the rules or procedures;

(d) An effective system of domestic review, including an effective system of appeal, to ensure legal recourse and remedies in the event that the rules or procedures established pursuant to this paragraph are not followed;

(e) Where appropriate, measures to regulate matters regarding personnel responsible for procurement, such as declaration of interest in particular public procurements, screening procedures and training requirements.


(Y) Yes0

1522


The government has established policies, procedures and systems governing all aspects

of procurement, including tendering all government contracts for the supply of goods and

services. These set out the criteria to be met and are made available to those seeking to

tender for the supply of goods or services. The government’s Procurement Policy and

Standard Terms and Conditions are published on the government website and, together

with other documents, are also included in a Procurement Handbook which is available

online via a staff portal and can be provided on request.

Among these documents is a Code of Purchasing Ethics, which is based on that issued by The

Chartered Institute of Procurement & Supply, and includes specific statements on corruption issues.

The precepts of the Code are:

“Staff should never use their authority for personal gain and should seek touphold and enhance the standing of purchasing within States Committees.

They should maintain an unimpeachable standard of integrity in all their businessrelationships.

They should promote the eradication of unethical business practices.

They should reject any other business practice which might reasonably bedeemed improper.

1



They should ensure full compliance with laws and regulations.”

1525


Opportunities for tendering for contracts are published on the government website along with the government’s Procurement Policy and Standard Terms and Conditions. The web-page in question can be found here: <https://gov.gg/procurement>.

All large-scale contracts including the processes behind recommendations are subject to scrutiny by the States of Guernsey (the legislature). In addition, the States of Guernsey’s Scrutiny Management Committee scrutinises all financial processes, procedures and systems adopted by all government committees or related bodies, including their decisions in relation to the procurement of goods and services.

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2. Each State Party shall, in accordance with the fundamental principles of its legal system, take appropriate measures to promote transparency and accountability in the management of public finances. Such measures shall encompass, inter alia:

(a) Procedures for the adoption of the national budget;

(b) Timely reporting on revenue and expenditure;

(c) A system of accounting and auditing standards and related oversight;

(d) Effective and efficient systems of risk management and internal control; and

(e) Where appropriate, corrective action in the case of failure to comply with the requirements established in this paragraph.


(Y) Yes0

1522


The States of Guernsey publishes, debates and adopts an interim financial report and an

annual budget each year. These proceedings are open to the public.

The States’ Internal Audit Unit audits government accounts. In addition to this, each yearthe government appoints external independent auditors to scrutinise its annual accounts.

The States’ Internal Audit Unit maintains a risks register. This is available online via a staffportal and can be provided on request.

The findings of the audit team are reported to the Chief Executive Officer, ChiefSecretaries and Senior Officers. Its final assurance reports are also shared with externalaudit and the Scrutiny Management Committee.

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The most recent budget report can be found here: <https://gov.gg/CHttpHandler.ashx?id=104354&p=0>.

To date there have been no instances of bribery and corruption. In 2012 a major fraud was perpetrated against the government by third parties in the UK, who deceived a government employee into making a payment due under a procurement contract to them instead of to the contractor. This led to an independent review of the government’s fraud prevention measures and other internal controls. The review included public hearings, and information about the review was published on the government’s website (available here: <https://www.gov.gg/article/153801/Scrutiny--PAC-Reviews-and-Reports-2013>). There was also a joint Guernsey /UK criminal investigation into the fraud that resulted in the conviction of 2 individuals in the UK.

1




3. Each State Party shall take such civil and administrative measures as may be necessary, in accordance with the fundamental principles of its domestic law, to preserve the integrity of accounting books, records, financial statements or other documents related to public expenditure and revenue and to prevent the falsification of such documents.


(Y) Yes0

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Falsification of any documents relating to public expenditure is covered by the offences at Part I of the Forgery and Counterfeiting (Bailiwick of Guernsey) Law, 2006 (available here: <http://www.guernseylegalresources.gg/CHttpHandler.ashx?id=71010&p=0> ).

The States’ Internal Audit Unit has the structures in place to detect suspicious activity andconsiders the integrity of documents and risks of bribery and corruption as a matter ofcourse in its assurance work. The States Head of Assurance is responsible for taking thelead in looking into whether any offences have been committed, and if he suspected anycriminality would immediately refer the matter to Law Enforcement. Any acts of criminalityinvolving States Members or employees that were identified by Law Enforcement wouldbe included in a review undertaken by the Scrutiny Management Committee and would bemade public.

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The States Internal Audit Unit publishes reports on all its engagements and the StatesHead of Assurances summarizes the results of the Unit’s work, together with any fraud,bribery and corruption concerns, in its annual report. The report is available online via astaff portal and can be provided on request.

There have been no cases of document falsification to date.

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None.

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None.

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10. Public reporting

26. Subparagraph (a) of article 10

Taking into account the need to combat corruption, each State Party shall, in accordance with the fundamental principles of its domestic law, take such measures as may be necessary to enhance transparency in its public administration, including with regard to its organization, functioning and decision-making processes, where appropriate. Such measures may include, inter alia:

(a) Adopting procedures or regulations allowing members of the general public to obtain, where appropriate, information on the organization, functioning and decision-making processes of its public administration and, with due regard for the protection of privacy and personal data, on decisions and legal acts that concern members of the public;


(Y) Yes0

1522


Information on the legislature (States of Deliberation), its processes and rules ofprocedure are publicly available ( see above under Article 7).

In addition, each month the agenda and detailed papers setting out the matters that theStates of Deliberation is due to debate, together with supporting documents, arepublished online. These papers include all policy matters and draft legislation that theStates of Deliberation is being asked to approve. Hard copies are also publicly available ata public records office known as the Greffe. The public is entitled to attend meetings ofthe States of Deliberation and its debates are broadcast live on local radio.

Rules governing the constitution and operation of the various government committeesthat operate as the executive are also publicly available. The reports produced by the Scrutiny Management Committee of the States of Guernseyand other government committees are available online and in hard copy form. Thegovernment also publishes statistics, information on the fiscal framework and strategicand operational plans.

All legislation is available online on the Guernsey Legal Resources and hard copies arealso available from the Greffe.

Protection of privacy and personal data is provided by the Data Protection (Bailiwick of Guernsey) Law, 2001 which is in line with internationally recognised data protection standards and governs the rights of data subjects and the obligations of data controllers. It is available here: <http://www.guernseylegalresources.gg/CHttpHandler.ashx?id=71705&p=0>

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cases, available statistics etc.

Information about current and archived public administration is available on the government website via this link: <https://www.gov.gg/parliament>

The Guernsey Legal Resources website is available here: <http://www.guernseylegalresources.gg/article/6325/Home>

Information about the Greffe is available here: <http://www.guernseyroyalcourt.gg/article/1654/Greffe>



27. Subparagraph (b) of article 10


...

(b) Simplifying administrative procedures, where appropriate, in order to facilitate public access to the competent decision-making authorities; and


(Y) Yes0

1522


A major programme of government restructuring was completed in May 2016. One of its objectives was to promote openness, transparency and independence in the scrutiny process. The number of members of the States of Deliberation was reduced and the ten departments exercising specific government functions were replaced by six committees. Detailed information about the changes was placed on the government website, which was updated more generally to make it more user-friendly and to widen the range of information available to the public. Information was also provided in press releases and in a YouTube video.

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Information on the restructuring of government is available here: <https://www.gov.gg/statesreviewcommittee>

1



28. Subparagraph (c) of article 10


...

(c) Publishing information, which may include periodic reports on the risks of corruption in its public administration.


(Y) Yes0

1522


Information on this is published on the government website.

1

1525


The link to the relevant page on the government website is available under Article 5.2 above.

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1529


None.

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1530


1531


None.

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11. Measures relating to the judiciary and prosecution services


1. Bearing in mind the independence of the judiciary and its crucial role in combating corruption, each State Party shall, in accordance with the fundamental principles of its legal system and without prejudice to judicial independence, take measures to strengthen integrity and to prevent opportunities for corruption among members of the judiciary. Such measures may include rules with respect to the conduct of members of the judiciary.


(Y) Yes0

1522


The judiciary comprises professional, legally qualified members who may decide mattersof fact and law, and a panel of lay members known as Jurats, who may only decidematters of fact. All are fully independent in the exercise of their functions.

The full-time members of the judiciary are the Bailiff and the Deputy Bailiff (the mostsenior judges), Judges of the Royal Court and Judges of the Magistrates Court. TheBritish Crown appoints the Bailiff and the Deputy Bailiff independently after considerationof recommendations from senior officials within Guernsey. Judges of the Royal Court andJudges of the Magistrates Court are appointed by the Royal Court of Guernsey.

The salaries for these positions are substantial, therefore reducing the chances thatcorruption will take place.

In addition to the full-time members of the judiciary, the Bailiff may appoint highlyexperienced lawyers as Lieutenant Bailiffs to try cases, who may be resident in Guernseyor elsewhere. The resident Lieutenant Bailiffs sit frequently, whilst the non-resident onessit when a member of the local judiciary has a conflict of interest, or when a case involvesa particular complexity or requires special expertise. The fees paid for sitting as aLieutenant Bailiff are also substantial.

Jurats are elected by an electoral college, comprising members of the legislature, theBailiff, existing Jurats, parish officials and members of the clergy. Their decision-makingpowers can only be exercised collectively so no individual is in a position to exert undueinfluence over the outcome of a case.

All judges and Jurats are vigorously vetted before appointment. They are bound by oathsof office and, in the case of the judges, by rigorous professional standards. In addition,they are bound by the Prevention of Corruption (Bailiwick of Guernsey) Law, 2003 (available viaa link under Article 8). Under section 2(1)(b), all members of the judiciary are public officials forthe purposes of the offence at Section 3.

Further information about the judicial system is available here: <http://www.guernseyroyalcourt.gg/article/1628/Royal-Court-Home-Page>

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There are currently 5 full-time members of the judiciary ( the Bailiff, Deputy Bailiff, one

1



Judge of the Royal Court and two judges of the Magistrates Court), two of whom have

expertise in financial crime, including corruption. There are currently 11 Lieutenant Bailiffs

with a range of expertise, including corruption and other aspects of financial crime. There

are always 16 Jurats, as required by the Royal Court (Reform) (Guernsey) Law 2008,

available here;

<http://www.guernseylegalresources.gg/ccm/navigation/orders-in-council/guernsey---bailiwick/c/courts-and-greffe/>. This level of resource is considered adequate for a population of fewer than 70,000 people and a very low domestic crime rate.

There have been no cases of corruption or breach of ethical standards by the judiciary todate.

Consideration of the resources, integrity etc. of the judiciary was included in Guernsey’s 2016 Moneyval report, available here: <https://rm.coe.int/report-on-fourth-assessment-visit-anti-money-laundering-and-combating-/16807160f3> and Guernsey was awarded a compliant rating (i.e. the highest rating) in this area (see Recommendation 30 in the compliance table in part IV).




2. Measures to the same effect as those taken pursuant to paragraph 1 of this article may be introduced and applied within the prosecution service in those States Parties where it does not form part of the judiciary but enjoys independence similar to that of the judicial service.


(Y) Yes0

1522


All prosecutions are brought in the name of the Attorney General, who is an independentofficer appointed by the British Crown after consideration of recommendations made bysenior officials within Guernsey. The Attorney General is also a public official for thepurposes of the Prevention of Corruption (Bailiwick of Guernsey) Law, 2003.

In practice, day-to-day responsibility for prosecutions is the responsibility of a specialistCriminal Prosecutions Directorate within the Attorney General’s chambers. Its membersare employed by the States of Guernsey and are civil servants, so are therefore subject tothe measures set out e under Articles 7 and 8 above, as well as being subject to thePrevention of Corruption (Bailiwick of Guernsey) Law, 2003. Prosecutors have full operationalindependence and autonomy, subject to the superintendence of the Attorney General orSolicitor General. In making prosecution decisions a Prosecutor’s Code of Guidance,based on the UK’s Code for Crown Prosecutors, is applied.

As with the judiciary, the risk of corruption is reduced by the substantial salaries paid tothe Attorney General, the Solicitor General and prosecutors.

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There are currently 6 members of the Criminal Prosecutions Directorate. This includes adedicated economic crime prosecutor and 4 others with experience of prosecutingeconomic crime. This level of resource is considered adequate for the reasons given underArticle 11.1.

There have been no cases of corruption or breach of ethical standards by prosecutors todate.

See under Articles 7 and 8 above in relation to implementation of the Civil Service Code. Also, the point under Article 11.1 about the findings in the 2016 Moneyval report applies equally to prosecutors.

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None.

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None.

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12. Private sector

33. Paragraphs 1 and 2 of article 12

1. Each State Party shall take measures, in accordance with the fundamental principles of its domestic law, to prevent corruption involving the private sector, enhance accounting and auditing standards in the private sector and, where appropriate, provide effective, proportionate and dissuasive civil, administrative or criminal penalties for failure to comply with such measures.

2. Measures to achieve these ends may include, inter alia: (a) Promoting cooperation between law enforcement agencies and relevant private entities;(b) Promoting the development of standards and procedures designed to safeguard the integrity of relevant private entities, including codes of conduct for the correct, honourable and proper performance of the activities of business and all relevant professions and the prevention of conflicts of interest, and for the promotion of the use of good commercial practices among businesses and in the contractual relations of businesses with the State;(c) Promoting transparency among private entities, including, where appropriate, measures regarding the identity of legal and natural persons involved in the establishment and management of corporate entities;(d) Preventing the misuse of procedures regulating private entities, including procedures regarding subsidies and licences granted by public authorities for commercial activities;(e) Preventing conflicts of interest by imposing restrictions, as appropriate and for a reasonable period of time, on the professional activities of former public officials or on the employment of public officials by the private sector after their resignation or retirement, where such activities or employment relate directly to the functions held or supervised by those public officials during their tenure;(f) Ensuring that private enterprises, taking into account their structure and size, have sufficient internal auditing controls to assist in preventing and detecting acts of corruption and that the accounts and required financial statements of such private enterprises are subject to appropriate auditing and certification procedures.

Is your country in compliance with these provisions?1521

(Y) Yes0

1523

Please describe (cite and summarize) the measures/steps your country has taken, if any, (or isplanning to take, together with the related appropriate time frame) to ensure full compliance withthese provisions of the Convention.

Corruption in the private sector is criminalised under the Prevention of Corruption (Bailiwick of Guernsey) Law, 2003 (available via a link under Article 8) and is punishable with up to 7 years’ imprisonment, an unlimited fine, or both. This is underpinned by bribery and corruption guidance for the private sector on the government website available here: <https://www.gov.gg/article/156152/Bribery-and-corruption>.The guidance provides information about the need for adequate procedures and examples of good practice and procedure which include record keeping, accounting and auditing standards. It also explains that the absence of adequate procedures may make a business criminally liable for corruption carried out by someone acting on its behalf.

Regulations made under Guernsey’s Income Tax legislation (available here, together with some amending regulations: <http://www.guernseylegalresources.gg/article/92668/No-37---Income-Tax-Keeping-of-Records-etc-Regulations-2006>: <http://www.guernseylegalresources.gg/article/99610/No-13---The-Income-Tax-Keeping-of-Records-etc-Amendment-Regulations-2012> ) require any legal or natural person engaged in receipt of income or profits from the carrying on of businesses to maintain records of all income and expenditure and the sale and purchase of goods. Records must be retained for 6 years. Breach of this requirement is subject to an administrative penalty of up to £2,500 for each failure and is also a criminal offence subject to a fine of up to £10, 00. Furthermore, a person who makes a statement in purported compliance with the Regulations which he or she knows or should reasonably have known is false, deceptive or misleading in a material particular is guilty of a criminal offence and subject to

1



imprisonment of up to 2 years or to a fine of up to £20,000, or to both.

Guernsey companies are subject to record keeping and auditing requirements under the Companies (Guernsey) Law, 2008 (available here: <http://www.guernseylegalresources.gg/CHttpHandler.ashx?id=70745&p=0> ). Breach of these obligations is a criminal offence punishable with a fine of up to £10,000.

Financial services businesses (which in Guernsey includes trust and company service providers), lawyers, accountants, estate agents and eGambling licencees are subject to obligations about record keeping, training and corporate governance under the anti-money laundering regulations referred to under Article 14 below. Compliance with these requirements is promoted and overseen by the supervisory authorities during onsite inspections and other supervisory outreach. As also indicated under Article 14, failure to comply with these measures is subject to a range of penalties that may be imposed by the supervisory authorities and is also a criminal offence punishable with up to 5 years’ imprisonment, an unlimited fine, or both. Compliance by the finance sector is facilitated by a Code of Corporate Governance issued by the Guernsey Financial Services Commission (GFSC) available here: https://www.gfsc.gg/sites/default/files/20160218%20%20Finance%20Sector%20Code%20of%20Corp%20%20Gov_3.pdf .

In addition, the minimum licensing criteria applicable to financial services businesses licensed by the GFSC requires them have systems of control and record-keeping and meet provisions around recordkeeping in rules issued by the Commission such as the Licensees (Conduct of Business) Rules. They are also required to produce and submit annual audited accounts to the GFSC for scrutiny. Financial services businesses who fail to submit annual audited accounts on time are subject to administrative financial penalties.

Under the Disclosure (Bailiwick of Guernsey) Law, 2007 ( available here: <http://www.guernseylegalresources.gg/CHttpHandler.ashx?id=71019&p=0>) all businesses are obliged to report to the FIU ( which sits within law enforcement) suspicion that someone is engaged in money laundering or that certain property is the proceeds of crime. This includes the proceeds of corruption. There is express protection under the legislation against any claims for breach of confidence.

The Guernsey Financial Services Commission provides a confidential whistle blowing contact point (available here: <https://www.gfsc.gg/commission/financial-crime>), and anonymous reports may be made to Guernsey Crimestoppers on a confidential phone line (available here: <http://www.guernsey.police.uk/article/6901/Focus-on--Crimestoppers>).

The Guernsey Financial Services Commission issues Codes of Practice, Rules and other documents promoting good business practices for the sectors it supervises (available in the Legislation and Guidance section for each industry sector here: <https://www.gfsc.gg/industry-sectors>). Lawyers are subject to the Code of Conduct applicable to the Guernsey Bar. This is available online via a members’ portal and can be provided on request.

Under the Beneficial Ownership of Legal Persons (Guernsey) Law, 2017 (available here: <http://www.guernseylegalresources.gg/CHttpHandler.ashx?id=109313&p=0>), details of the beneficial owners of Guernsey legal persons are maintained on a private central register. Information on the register is available to competent authorities - see Schedule 2, paragraph 2. The Registrar of Beneficial Ownership has issued guidance on the meaning of beneficial owner which is available here:



<http://guernseyregistry.com/CHttpHandler.ashx?id=109195&p=0>

Information on beneficial ownership must also be obtained under the anti-money laundering regulations and made available to the authorities on request - see below under Article 14.

Guernsey does not issue subsidies in the way envisaged by Article 12.2.d.

Financial services and eGambling businesses are subject to a licensing regime- see below under Article 14. The criteria and the processes involved are specified in legislation and made publicly available on the websites of the supervisory authorities. A small number of other commercial activities such as fishing and waste disposal also subject to licensing. The criteria and the processes involved for these licences are specified in legislation and made publicly available on the government website.

The measures referred to under Article 12.1 include provisions relating to internal audit.

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See under Article 5.2 above for information on implementation of anti-corruptionmeasures by the private sector. (The prosecution referred to there involved theacceptance of bribes by a bank employee).

Compliance with the record-keeping requirements under both the AML/CFT framework and the regulatory laws is predominantly tested by examining a firm’s internal books and records together with that of the records maintained for its clients (including former clients) during onsite inspections carried out by the GFSC’s AML/CFT and prudential supervisory teams. Findings in the vast majority of cases are that firms are maintaining records in compliance with both sets of requirements. This is confirmed by a thematic review carried out in 2015 by the GFSC which found that compliance with the requirements in the anti-money laundering regulations to have in place appropriate policies, procedures and controls was broadly good. The review is available here: https://www.gfsc.gg/sites/default/files/20160608%20%20Financial%20Crime%20Training%20Thematic%20Review%20Report.pdf. The GFSC also provides information on compliance and enforcement in its annual reports, which are available here: <https://www.gfsc.gg/commission/publications/annual-reports>

An example of enforcement action is a recent case in which the GFSC found, amongst

other issues, a failure to keep adequate client records and maintain the company’s

records in accordance with the Licensees (Conduct of Business) Rules and consequently a

failure to meet the minimum licensing criteria. On 14 June 2017 the GFSC imposed

financial penalties totaling £66,500 on three individuals (two of whom were also

prohibited from holding positions in the finance sector for a period of 3 years 6 months, 5

years and 7 years) and issued a public statement. The public statement can be found

here:

<https://www.gfsc.gg/news/article/capital-solutions-limited-stillwater-worldwide-limited-stillwater-investment-enterprise>

The Alderney Gambling Control Commission provides information on compliance and enforcement in its annual reports which can be found at https://www.gamblingcontrol.org/category/report/ <https://owa.gov.gg/owa/redir.aspx?C=ABBw6f-Q9edrsjJ44dwQz_a-

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WcYfNAOF03_HKvFvbgB0Q_dokAbVCA..&URL=https%3a%2f%2fwww.gamblingcontrol.org%2fcategory%2freport%2f>

The statistics below detail the number of suspicious activity reports submitted to the FIU

where suspected criminality is domestic or international corruption and bribery.

Corruption and Bribery SARs 2012-2016

Year Number of

SARs

%age of total SARs in that

year

2012 38 6

2013 43 6

2014 49 6

2015 48 5

2016 64 5

See the findings of the Guernsey Financial Services Commission in the reports referred tounder Article 12.1 above.

The information about licensing on the government website is available here: <https://www.gov.gg/article/150916/Licences-and-regulations-for-particular-types-of-business>.

Experience is that beneficial ownership is available and accessible - see the findings for Recommendation 33 and 34 in Guernsey’s 2016 Moneyval report, available here: <http://www.coe.int/en/web/moneyval/jurisdictions/guernesey>




3. In order to prevent corruption, each State Party shall take such measures as may be necessary, in accordance with its domestic laws and regulations regarding the maintenance of books and records, financial statement disclosures and accounting and auditing standards, to prohibit the following acts carried out for the purpose of committing any of the offences established in accordance with this Convention:

(a) The establishment of off-the-books accounts;

(b) The making of off-the-books or inadequately identified transactions;

(c) The recording of non-existent expenditure;

(d) The entry of liabilities with incorrect identification of their objects;

(e) The use of false documents;

(f) The intentional destruction of bookkeeping documents earlier than foreseen by the law.


(Y) Yes0

1522


These activities would constitute breach of the record keeping obligations in the IncomeTax legislation and in the Companies Law (see under Article 12.1 above) and also in theanti-money-laundering regulations referred to under Article 14. These breaches aresubject to administrative and criminal penalties.

The actions listed at (a) to (b) above when done deliberately would also constitute offences of dishonesty, namely obtaining pecuniary advantage by deception, evasion of liability by deception and false accounting under the Theft (Bailiwick of Guernsey) Law, 1983 (available here: <http://www.guernseylegalresources.gg/CHttpHandler.ashx?id=71035&p=0> ), offences of forgery, using or copying a false instrument under the Forgery and Counterfeiting (Bailiwick of Guernsey) Law, 2006 (available here: <http://www.guernseylegalresources.gg/CHttpHandler.ashx?id=71010&p=0>) and offences of fraud by false representation under the Fraud (Bailiwick of Guernsey) Law, 2009 ( available here: <http://www.guernseylegalresources.gg/CHttpHandler.ashx?id=97478&p=0>).

1

1525


Information about the record keeping obligations and the dishonesty offences referred toabove is included in the anti-corruption information on the government website (availablevia a link under Article 12.1 above).

The incidence of these dishonesty offences is very low, but there have been a small number of cases and these were successfully prosecuted. See for example the case of Whittaker at paragraph 77 of issue 6 of the Guernsey Law Journal available here: <http://www.guernseylegalresources.gg/CHttpHandler.ashx?id=74284&p=0>

1




4. Each State Party shall disallow the tax deductibility of expenses that constitute bribes, the latter being one of the constituent elements of the offences established in accordance with articles 15 and 16 of this Convention and, where appropriate, other expenses incurred in furtherance of corrupt conduct.


(Y) Yes0

1522


The only tax on income applicable in Guernsey is that under the Income Tax (Guernsey) Law, 1975 (available here: <http://www.guernseylegalresources.gg/article/98265/Income-Tax-Guernsey-Law-1975-Consolidated-text>), which does not permit deductions other than those that come within defined categories of authorised deductions. These categories do not include expenses that constitute bribes or other expenses incurred in furtherance of corrupt conduct, and sections 7(2)(h) and 7(2)(i) specify that no deductions are permitted in respect of domestic or foreign payments, or related expenditure, that would constitute an offence. Including those items as deductible expenses would therefore constitute making a false tax return, which is liable to significant administrative penalties (of up to 300% of the total tax liability not taking into account tax allowances available to individuals) or a criminal offence under Part XVIII of the Income Tax (Guernsey) Law, 1975. In the event that the relevant records had not been maintained (or false statements were made in connection to those records), this would also constitute one or more of the criminal offences listed under Article 12.3 above.

1

1525


See the Income Tax website (available here: <https://www.gov.gg/tax> ) which provides an overview of the regime for implementing the legislation. In summary, income tax returns are subject to an annual screening process comprising an initial check for indicators of errors or omissions, followed up if necessary by an in depth review on specific aspects (an aspect audit) or a full enquiry, depending on the circumstances of the case. In addition, all cases are subject to an in depth review on a 5 year cycle. The effect of this is that a minimum of 1,700 cases (companies and unincorporated businesses) are subject to an annual in depth review, which involves a consideration of compliance with the legal framework generally.

This screening process may lead to a full investigation into tax evasion, which may also be carried out on the basis of intelligence received, including from the other authorities or members of the public via confidential reporting channels.

If as a result of an investigation or review there was reason to suspect corrupt paymentsor expenses claims had been made, the matter would be referred to Deputy Director(Compliance & International) of Income Tax who would then liaise with the otherauthorities about appropriate enforcement action.

Statistics for 2014-16 for adjustments made to taxable income following an aspect audit are asfollows:

1



2016 2015

Aspect audits where adjustment made to taxable income 246 250

Statistics for investigation cases in the same period are as follows:

Year No. of cases Total settlement

2014 240 £930,472.59

2015 132 £914,619.28

2016 198 £529,920.44

The settlement figure relates to the total of the additional tax arising following theconclusion of the investigation, the late payment surcharges applied and also any civilpenalties imposed.

To date the Income Tax Office has not discovered any suspected payment of bribes or other expenses incurred in the furtherance of corrupt conduct as part of their enquiry and investigation activities.





1529


None.

1


1530


1531


None.

1



13. Participation of society


1. Each State Party shall take appropriate measures, within its means and in accordance with fundamentalprinciples of its domestic law, to promote the active participation of individuals and groups outside thepublic sector, such as civil society, non-governmental organizations and community-based organizations, inthe prevention of and the fight against corruption and to raise public awareness regarding the existence,causes and gravity of and the threat posed by corruption. This participation should be strengthened by suchmeasures as:(a) Enhancing the transparency of and promoting the contribution of the public to decision-makingprocesses;(b) Ensuring that the public has effective access to information(c) Undertaking public information activities that contribute to non-tolerance of corruption, as well as publiceducation programmes, including school and university curricula;(d) Respecting, promoting and protecting the freedom to seek, receive, publish and disseminate information concerning corruption. That freedom may be subject to certain restrictions, but these shall only be such as are provided for by law and are necessary:

(i) For respect of the rights or reputations of others;(ii) For the protection of national security or ordre public or of public health or morals.


(Y) Yes0

1522


The government regularly conducts open consultations or surveys, and information aboutthese is published on a dedicated “Talk to Us” page on the government website.Information on the outcome of consultations and the government response to them is alsopublished on the website. Consultation is also carried out by other authorities such as theGuernsey Financial Services Commission or the FIU on issues within their particularremit. In addition to open consultation and surveys, targeted consultation and surveys aresometimes conducted with members of a particular group, e.g. a professionalorganisation. There is also a complaints section on the government website whichenables members of the public to submit complaints about a government service, staffmember or politician.

Some of the Committees that form part of the government are required to include somenon-elected representatives who are members of the public, including the ScrutinyManagement Committee. In addition, there are several independent tribunals, panels andbodies that adjudicate on disputes or complaints from individuals about particulargovernment decisions or actions, and these include members of the public.

Specific consultation is carried out on draft legislation, and, in addition, all draft legislationis published before being approved by the legislature so the public has an opportunity tomake representations on it before enactment.

Guernsey provides access to public information in accordance with a Code of Practicewhich is published on the government website. Its guiding principles are:

· A presumption of disclosure;

· A corporate approach;

· A culture of openness;

· Proactive publication; and

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· Effective record management

The only grounds for refusing to respond to a request, or to provide a redacted response,is if it comes within specified exceptions for sensitive or confidential information e.g.where there are issues of security and external relations, legal proceedings or effectivemanagement of the economy or the public service. Requests and responses for the lastfour years are published on the government website.

Information in relation to corruption risk in the public sector is also published on thegovernment website and is available via the link under Article 5.2.

1525


Information on recent government consultations is available here: <https://www.gov.gg/talk> and information on the results of consultation is available here: <https://www.gov.gg/updates>. The complaints section of the website is available here: <https://www.gov.gg/reportit>

Information on consultations carried out by the Guernsey Financial Services Commission is available here: <https://www.gfsc.gg/news/category/consultations>

Details of non-elected members of certain government Committees (e.g. Scrutiny Management Committee, Health & Social Care Committee) is available here: <https://www.gov.gg/constitution>

Information on the composition of independent tribunals, panels and bodies is available here: <https://www.gov.gg/article/150902/Independent-Appeal-Tribunals-Panels-and-Bodies>

An examples of the publication of draft legislation is available here: <https://www.gov.gg/article/160644/States-Meeting-on-27-September-2017>

The Code of Practice on Access to Public Information and related documents including annual reports and specific requests and responses are available here: <https://www.gov.gg/information>

1




2. Each State Party shall take appropriate measures to ensure that the relevant anti-corruption bodies referredto in this Convention are known to the public and shall provide access to such bodies, where appropriate, forthe reporting, including anonymously, of any incidents that may be considered to constitute an offenceestablished in accordance with this Convention.


(Y) Yes0

1522


The responsibility for investigating corruption rests with the law enforcement representatives of the Anti-Bribery and Corruption Committee (see above under Article 6). This is explained on the government website page dealing with domestic corruption risks available via a link under Article 5.2. The website also identifies the police as the first contact point for reporting suspected criminality, and the police station is open 24 hours a day, 7 days a week. There are details about this, including information about confidentiality and a link to the anonymous Crimestoppers line, on the police website (available here: http://www.guernsey.police.uk/article/6077/Report-a-Crime-or-Incident). In the event of a report of corruption from a member of the public, the police would liaise with other Law Enforcement agencies represented on the Anti-Bribery and Corruption Committee about who would take the matter forward. If a member of the public reported suspected corruption to one of the other members of the Anti-Bribery and Corruption Committee (e.g. via the Guernsey Financial Services Commission’s whistleblowing line), that authority would refer the matter to the Law Enforcement agencies to deal with as appropriate.

1

1525


To date there has only been one case of corruption, which resulted in a successful prosecution - see under Article 5.2.

1





1529


None.

1


1530


1531


None.

1



14. Measures to prevent money-laundering

40. Subparagraph 1 (a) of article 14

1. Each State Party shall:(a) Institute a comprehensive domestic regulatory and supervisory regime for banks and non-bank financial institutions, including natural or legal persons that provide formal or informal services for the transmission of money or value and, where appropriate, other bodies particularly susceptible to money-laundering, within its competence, in order to deter and detect all forms of money-laundering, which regime shall emphasize requirements for customer and, where appropriate, beneficial owner identification, record-keeping and the reporting of suspicious transactions;


(Y) Yes0

1522


All banks, insurance businesses, investment businesses and trust and company service providers operating in Guernsey are subject to a prudential oversight regime which requires them to be licensed and supervised. The relevant legislation is the Banking Supervision (Bailiwick of Guernsey) Law, 1994 (available here: <http://www.guernseylegalresources.gg/CHttpHandler.ashx?id=71524&p=0>) , the Protection of Investors (Bailiwick of Guernsey) Law, 1987(available here: <http://www.guernseylegalresources.gg/CHttpHandler.ashx?id=71521&p=0> ), the Insurance Business (Bailiwick of Guernsey) Law, 2002(available here: <http://www.guernseylegalresources.gg/CHttpHandler.ashx?id=71522&p=0> ), the Insurance Managers and Insurance Intermediaries (Bailiwick of Guernsey) Law, 2002, (available here: http://www.guernseylegalresources.gg/CHttpHandler.ashx?id=71523&p=0 ) and the Regulation of Fiduciaries, Administration Businesses and Company Directors, etc. (Bailiwick of Guernsey) Law, 2000 (available here: http://www.guernseylegalresources.gg/CHttpHandler.ashx?id=71526&p=0 ). The licensing and supervisory authority is the Guernsey Financial Services Commission (GFSC).

All non-regulated financial services businesses must be registered with the GFSC under the Registration of Non-Regulated Financial Services Businesses (Bailiwick of Guernsey) Law, 2008 (available here: <http://www.guernseylegalresources.gg/CHttpHandler.ashx?id=71525&p=0>).

All financial services businesses, whether licensed or registered, are subject to an anti- money laundering regulatory regime under the Criminal Justice (Proceeds of Crime) (Financial Services Businesses) (Bailiwick of Guernsey) Regulations, 2007, as amended (available here: <http://www.guernseylegalresources.gg/CHttpHandler.ashx?id=73340&p=0>). Trust and company service providers are treated as financial services businesses for these purposes. See Schedule 1 to the Criminal Justice (Proceeds of Crime) (Bailiwick of Guernsey) Law, 1999 (Proceeds of Crime Law - available here: <http://www.guernseylegalresources.gg/CHttpHandler.ashx?id=70902&p=0>) for the list of financial services businesses covered by the regulations).

Compliance with these regulations is supervised and enforced by the GFSC. Information on the regulations, together with associated rules and guidance, is set out in a Handbook

1



for Financial Services Businesses on Countering Financial Crime and Terrorist Financing issued by the GFSC which is available here: FSB Handbook <https://www.gfsc.gg/sites/default/files/20170630%20-%20FSB%20Handbook%20%28Revised%29.pdf>.

There is an identical regulatory regime under the Criminal Justice (Proceeds of Crime) (Legal Professionals, Accountants and Estate Agents) (Bailiwick of Guernsey) Regulations, 2008 (available here: <http://www.guernseylegalresources.gg/CHttpHandler.ashx?id=73907&p=0>) for non - financial services business covered by the FATF standards. This is also supervised and enforced by the GFSC. Information on the regulations, together with associated rules and guidance, is set out in a Handbook for Prescribed Businesses on Countering Financial Crime and Terrorist Financing issued by the Guernsey Financial Services Commission which is available here: PB Handbook <https://www.gfsc.gg/sites/default/files/20170630%20-%20PB%20Handbook%20%28Revised%29.pdf>.

The operation of eCasinos, which are the only casinos within the jurisdiction, is subject to a prudential oversight regime under the Alderney eGambling Ordinance, 2009 (available here: <http://www.guernseylegalresources.gg/CHttpHandler.ashx?id=69839&p=0>). The licensing and supervisory authority is the Alderney Gambling Control Commission (AGCC). Its licensees are also subject to an anti - money laundering regime under the Alderney eGambling Regulations, 2009 (available here: <http://www.guernseylegalresources.gg/CHttpHandler.ashx?id=74070&p=0>), which it also supervises and enforces. Information on the regulations, together with associated rules and guidance, is set out in a guidance document issued by the AGCC which is available here: eGaming guidance <https://www.gamblingcontrol.org/wp-content/uploads/2015/12/anti_money_laundering_info.pdf>.

All three sets of anti -money laundering regulations contain comprehensive and

mandatory procedures in respect of customer identification (including beneficial ownership

information), record keeping and the reporting of suspicious transactions. Failure to

comply with the regulations is a criminal offence. In addition, the GFSC and the AGCC

have information gathering and enforcement powers in relation to compliance with the

regulations, including the right to enter premises which may be backed by a court warrant

in cases of non-compliance ( see sections 49B and 49C of the Proceeds of Crime Law with

regard to financial services businesses - there are corresponding measures in place for

lawyers, accountants, estate agents and eGambling licensees).

The suspicious transaction reporting requirements in these regimes are underpinned by reporting obligations at sections 1 to 3 of the Disclosure (Bailiwick of Guernsey) Law, 2007 ( available here: <http://www.guernseylegalresources.gg/CHttpHandler.ashx?id=71019&p=0>) which apply to suspicion acquired in the course of any type of business.

1525


The Guernsey Financial Services Commission’s AML/CFT on-site and off-site supervision

is determined on the basis of risk, and its methodology is weighted towards trust and

company service providers and private banking. All firms supervised for AML/CFT

purposes are monitored and risk assessed by the GFSC through the annual financial

1



crime risk return. On-site inspections involve a detailed review of client files across the

risk spectrum on a structured sample basis and staff interviews, including with senior

officials. There were 53 onsite inspections in 2014, 60 in 2015 and 67 in 2017. In 2014

financial penalties of £30,000 and £70,000 were imposed and 2 public statements were

issued, in 2015 4 financial penalties of £50, 000 and one of £10,000 were imposed, a

public statement was issued and prohibitions on acting as a director etc. were issued, in

2016 financial penalties of £ 42,000, £ 18, 375, and £ 10, 500 x2 were imposed and a

public statement issued, and in 2017 a financial penalty of £ 70,000 was imposed a public

statement issued.

The Alderney Gambling Control Commission supervision regime is risk based and has, at its core, an annual on-site inspection of all eCasinos. This includes a full review of the eCasino’s AML/CFT provisions as set out in its internal control standards (and contained within its questionnaire (https://www.gamblingcontrol.org/regulation-framework/ics-guidelines/ <https://owa.gov.gg/owa/redir.aspx?C=rYit4GYs8cUUqtTJ2MLI2uekcyw7TewHHNiJqaLiqbLVpPlokAbVCA..&URL=https%3a%2f%2fwww.gamblingcontrol.org%2fregulation-framework%2fics-guidelines%2f>). In 2014 51 inspections took place and 31 eCasinos were inspected. 19 inspections identified AML/CFT infringements and two eCasinos received written warnings. In 2015 39 inspections took place and 20 eCasinos were inspected. 16 inspections identified AML/CFT infringements. No written warnings or more serious sanctions were issued. In 2016 38 inspections took place and 23 eCasinos were inspected. 20 inspections identified AML/CFT infringements. Two written warnings were issued.

The statistics for suspicious activity reports (SARs) received by the FIU in the last 3 years are as follows:

797 SARs were made in 2014, 978 in 2015 and 1368 in 2016. In this period, 245 spontaneous disseminations from SARs to law enforcement were made in total and 37 investigation referrals. This led to 5 prosecutions (including one where the defendant absconded before trial) resulting in the conviction of 8 individuals overall for money laundering and related offences. Two investigations involving complex money laundering are on-going.



41. Subparagraph 1 (b) of article 14

1. Each State Party shall:

...

(b) Without prejudice to article 46 of this Convention, ensure that administrative, regulatory, law enforcement and other authorities dedicated to combating money-laundering (including, where appropriate under domestic law, judicial authorities) have the ability to cooperate and exchange information at the national and international levels within the conditions prescribed by its domestic law and, to that end, shall consider the establishment of a financial intelligence unit to serve as a national centre for the collection, analysis and dissemination of information regarding potential money-laundering.


(Y) Yes0

1522


Guernsey has created the Financial Intelligence Service (FIS) as its national centre for the

collection, analysis and dissemination of information regarding potential money

laundering. It is law enforcement FIU which comprises members of the Guernsey Police

Force and the Guernsey Border Agency and sits within the Guernsey Border Agency. The

obligation to make reports to the FIS is enshrined in legislation (see the definition of the

FIS at section 17 of the Disclosure (Bailiwick of Guernsey) Law, 2007 (Disclosure Law)

which is available via a link under Article 14.1 a. above). The FIS produces an annual

report which is published on its website and distributed to all Egmont members via the

secure web.

The other AML/CFT authorities are the States of Guernsey Policy and Resources

Committee ( which has a coordinating role and is also the competent authority for

implementation of sanctions), the Guernsey Border Agency (in respect of its non-FIS

functions, i.e. criminal investigation and border control), the Attorney General’s

chambers, the Guernsey Financial Services Commission, the Guernsey Registry (as the

Registrar of Companies and other legal persons, the Registrar of Beneficial Ownership and

the Registrar of Non Profit Organisations), the Guernsey Income Tax Service and the

Alderney Gambling Control Commission.

The FIS is able to exchange information with all of these authorities and with international

bodies via a legal gateway at section 8 of the Disclosure Law. This permits a police officer

(which includes a Customs officer under the interpretative provisions at section 17 so

covers all members of the FIS) to disclose to any person any information obtained under

any enactment or in connection with the carrying out of any of his functions, for the

purposes of the prevention, detection, investigation or prosecution of criminal offences in

the Bailiwick of Guernsey or elsewhere, the prevention, detection or investigation of

conduct for which penalties other than criminal penalties are provided under the law of

the Bailiwick or of any country or territory outside the Bailiwick, the carrying out by the

Guernsey Financial Services Commission or an equivalent body in another country of it

functions, and the carrying out of the functions of any intelligence service.

1



The FIS is an active member of Egmont (Guernsey hosted the 2004 Egmont plenary) and signs Memoranda of Understanding or other agreements with other FIUs, including for the purpose of information exchange. Further information is available here: <http://www.guernseyfiu.gov.gg/article/6340/EGMONT>

Table of MoUs signed by the FIS is attached.

1525


Cooperation and information exchange between the FIS and the other domestic AML/CFT

authorities is achieved through a formal committee structure as well as by additional

meetings and communication.

Committee structure - this is headed by the AML/CFT Advisory Committee which

comprises senior representatives of the different authorities and is chaired by the Attorney

General. The following sub-committees and working groups report to it -

· The Financial Crime Working Group

· The Anti-Bribery and Corruption Committee

· The Sanctions Committee

· The NPOs working group

Bilateral cooperation and information exchange -

· Tasking and coordination meetings (Guernsey Border Agency and the Guernsey

police)

· Enforcement Review Committee ( Law enforcement and financial services

regulator)

· Asset recovery & mutual legal assistance case review meetings (Law

enforcement and Attorney General’s chambers)

· MoU between the FIS and the Income Tax Office

· Information exchange agreement between the FIS and the Registrar of Non Profit

Organisations

Alongside these formalised arrangements, meetings on particular operational issues take

place between the different authorities whenever necessary and can be arranged very

quickly.

All necessary legal gateways for domestic and international information exchange are in

place. Examples include:

· Disclosure (Bailiwick of Guernsey) Law, 2007 - sections 6 to 10A ( available via a

link under Article 14.1.a. above)

· Criminal Justice (Proceeds of Crime) (Bailiwick of Guernsey) Law, 1999- sections

43 and 44 (available via a link under Article 14.1.a. above)

· Criminal Justice (Fraud Investigation) (Bailiwick of Guernsey) Law, 1991- section

2 (available here:

<http://www.guernseylegalresources.gg/CHttpHandler.ashx?id=71016&p=0>) · Financial Services Commission (Bailiwick of Guernsey) Law, 1987-section 21

(available here:

1



<http://www.guernseylegalresources.gg/CHttpHandler.ashx?id=71528&p=0>) · Income Tax ( Guernsey) Law, 1975 - section 205(3) (available here:

<http://www.guernseylegalresources.gg/CHttpHandler.ashx?id=71387&p=0>)

· Gambling ( Alderney) Law, 1999 - paragraph 12(2)(c) of Schedule 1 ( available

here:

<http://www.guernseylegalresources.gg/CHttpHandler.ashx?id=72074&p=0>)· Charities and Non Profit Organisations (Registration) (Guernsey) Law, 2008 -

paragraph 13(2) of Schedule 1 (available here: <http://www.guernseylegalresources.gg/CHttpHandler.ashx?id=104235&p=0>)

Guernsey has been an active member of Moneyval since 2012 and has taken part inmany working groups and other activities for Moneyval and other international andregional bodies such as the FATF and Egmont. For example, a Guernsey representativesat on the working group that drafted the 2012 FATF recommendations. Guernsey has anumber of trained FATF evaluators and has provided evaluators for 13 evaluations, forboth Moneyval and for other bodies including the FATF, the APG and the IMF.

Guernsey has also been actively involved in supporting international initiatives on beneficial ownership, particularly those of the FATF, the OECD and Egmont.




2. States Parties shall consider implementing feasible measures to detect and monitor the movement of cash and appropriate negotiable instruments across their borders, subject to safeguards to ensure proper use of information and without impeding in any way the movement of legitimate capital. Such measures may include a requirement that individuals and businesses report the cross-border transfer of substantial quantities of cash and appropriate negotiable instruments.


(Y) Yes0

1522


Guernsey has a declaration system in place with regard to all forms of incoming or

outgoing cross-border movements of cash and negotiable instruments.

Transportation by travellers is covered by non-declaration offences under section 1 of the

Cash Controls (Bailiwick of Guernsey) Law, 2007 (Cash Controls Law - available here:

<http://www.guernseylegalresources.gg/CHttpHandler.ashx?id=70871&p=0> ), subject to a €10,000 threshold.

Transportation by cargo and post are covered by the general declaration requirements applicable to goods, which include cash, in sections 14 and 28 of the Customs and Excise (General Provisions) (Bailiwick of Guernsey) Law, 1972 (available here: <http://www.guernseylegalresources.gg/CHttpHandler.ashx?id=70878&p=0>) and sections 5 and 6 of the Post Office (Postal Packets) Ordinance, 1973 ( available here: <http://www.guernseylegalresources.gg/CHttpHandler.ashx?id=67919&p=0>). There is no threshold for the declaration requirements for cargo and a £50 threshold for the declaration requirements for post.

Cash for these purposes includes bearer negotiable instruments, banknotes, bullion, ingots, coins and postage stamps. Failure to declare and making a false declaration are criminal offences punishable with up to 2 years imprisonment, an unlimited fine, or both. In addition, the cash is liable to forfeiture.

There are restrictions on the disclosure of information provided by declarations in all 3 cases as a safeguard to prevent misuse of the information.

1

1525


The statistics for the last 3 years are as follows:

Number of Cash Declarations made under the Cash Controls Law

Total Declarations Import Export Air Travel

2014 120 65 55 71

2015 116 62 54 74

2016 107 72 35 17

1



Value of Import Declarations made under the Cash Controls Law

British Pound US Dollar Euro Bullion Other

currencies

2014

Import

£3,412,837 $72,339 €92,806 £3,603,758 £26,928

2015

Import

£4,681,837 $84,821 €208,480 £1,021,048 £25,756

2016

Import

£100,000 $12,750 €129,000 £15,852,313 £788,435

Value of Export Declarations made under the Cash Controls Law

British Pound US Dollar Euro Bullion Other currencies

2014

Export

£666,131 $133,814 €363,490 £1,735,954 £49,942

2015

Export

£523,855 $103,800 €147,705 £1,092,086 £23,752

2016

Export

£57,150 $17,000 €55,450 £120,276 £18,367

Suspicious Cross Border Incidents Cash Controls (Bailiwick of Guernsey) Law, 2007

No of cases Referrals Prosecutions Court

2014 2 2 2 £6,000

2015 2 2 2 £9,000

2016 - - - -




3. States Parties shall consider implementing appropriate and feasible measures to require financial institutions, including money remitters:

(a) To include on forms for the electronic transfer of funds and related messages accurate and meaningful information on the originator;

(b) To maintain such information throughout the payment chain; and

(c) To apply enhanced scrutiny to transfers of funds that do not contain complete information on the originator.


(Y) Yes0

1522


Although Guernsey is not an EU member state, it has voluntarily implemented Regulation(EU) 2015/847 available here: <http://eur-lex.europa.eu/legal-content/AUTO/?uri=CELEX:32015R0847&qid=1505579896774&rid=1>

which deals with the transfer of funds by enacting the Transfer of Funds (Guernsey) Ordinance, 2007 (available here: <http://www.guernseylegalresources.gg/CHttpHandler.ashx?id=108258&p=0>). The Ordinance gives direct effect to the regulation in Guernsey, and it repeals and replaces precursor legislation giving effect to EU measures on the transfer of funds dating back to 2007.

Therefore all of the obligations on payment service providers under Regulation (EU) 2015/847 apply to domestic payment service providers (subject to some modifications to reflect the particular position of Guernsey, e.g. by substituting references to EU regulations in related areas that do not apply domestically with references to corresponding domestic legislation in those areas). Guernsey’s equivalence with Regulation (EU) 2015/847 has been recognised by the European Commission.

The information that must accompany transfers is as follows: · the name of the payer;

· the payer's payment account number;

· the payer's address, national identity number, customer identification number or

date and place of birth

· the name of the payee

· the payee’s payment account number.

Before transferring funds, the payment service provider of the payer must verify theaccuracy of this information on the basis of documents, data or information obtained froma reliable and independent source.

No transfer of funds may take place until these requirements are complied with, and thereis a requirement to maintain information throughout the payment chain.

There are also requirements on payment service providers to implement effective policies

1



and procedures for the detection of missing information on the payer or payee and toimplement effective risk-based procedures, including procedures on a risk-sensitive basis,for determining whether to execute, reject or suspend a transfer of funds lacking therequired complete payer and payee information and for taking the appropriate follow-upaction.

1525


Rules and guidance in respect of the transfer of funds have been issued as Annex II to the Handbooks of the Guernsey Financial Services Commission, available here: <https://www.gfsc.gg/news/article/revisions-financial-services-business-and-prescribed-business-handbooks>. Since 2007 compliance with transfer of funds obligations has been reviewed during on-site inspections.

1




4. In establishing a domestic regulatory regime and supervisory regime under the terms of this article, and without prejudice to any other article of this Convention, States Parties are called upon to use as a guideline the relevant initiatives of regional, interregional and multilateral organizations against money-laundering.


(Y) Yes0

1522


Guernsey’s policy is to comply with the FATF Recommendations, and this was the caseeven before it joined Moneyval in 2012. Guernsey’s compliance with the FATFRecommendations was most recently considered in its 2016 Moneyval report.

The authorities routinely assess Guernsey’s domestic regulatory and supervisory regimeagainst the FATF Recommendations and any related guidance, typologies papers etc.issued by the FATF or FATF-Style Regional Bodies (especially Moneyval). Guernsey alsocomplies with initiatives of other bodies such as the OECD, the UN and Egmont.Appropriate action to meet these standards is taken as necessary, which might includeamending legislation, issuing guidance or carrying out targeted outreach.

1

1525


The ratings awarded to Guernsey in its 2016 report were extremely high in all areas - see the Compliance table in part IV of the report, available here: <https://rm.coe.int/report-on-fourth-assessment-visit-anti-money-laundering-and-combating-/16807160f3>.

1




5. States Parties shall endeavour to develop and promote global, regional, subregional and bilateral cooperation among judicial, law enforcement and financial regulatory authorities in order to combat money-laundering.


(Y) Yes0

1522


The policy of the Guernsey authorities is to engage as fully as possible in measures to promote cooperation, not just internationally but also at a regional, sub regional and bilateral level. See under Article 14.1.b and Article 5.4 above. In addition, the Guernsey AML/CFT authorities attend regular meetings with their counterparts in the UK, France, Jersey the Isle of Man and other jurisdictions to share information about issues of common concern.

1

1525


See under Article 14.1.b and Article 5.4 above.

1





1529


None.

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1530


1531


None.

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V. Asset recovery

51. General provision

225. Article 51

1. The return of assets pursuant to this chapter is a fundamental principle of this Convention, and States Parties shall afford one another the widest measure of cooperation and assistance in this regard.


(Y) Yes0

1524

Please describe (cite and summarize) the measures/steps your country has taken, if any, (or isplanning to take, together with the related appropriate time frame) to ensure full compliance withthis provision of the Convention, including identifying both any legal authorities/procedures foraccepting requests for asset recovery and assessing that these requests are reasonablysubstantiated and supplemented as well as any time frame established under domestic laws andprocedures for their execution, taking into account requests received from countries with similaror different legal systems and any challenges faced in this context.

Guernsey has a mature system in place to ensure that information about the source offunds of foreign origin is available within the jurisdiction, is communicated to the FIU, isshared with domestic and international authorities and is followed by action being takento freeze, confiscate and repatriate funds.

The starting point is that businesses are required to hold information about money offoreign origin under the enhanced due diligence measures set out under Article 52, whichinclude establishing the source of funds.

Any suspicion in relation to those funds must then be reported to the FIU, and this appliesto attempted transactions, i.e. even if the bank or other institution in question does notthen enter into a business relationship or carry out a transaction in relation to thosefunds. The mandatory form for making suspicious activity reports includes details of anyrelevant accounts.

If the FIU requires additional information following the making of a report it may obtainthis from any party, including a bank or other financial institution. Guernsey has no banksecrecy legislation or other provisions to impede the transmission of this information.Although the information is confidential, providing it to the FIU is protected against claimsfor breach of confidence under the Disclosure (Bailiwick of Guernsey) Law, 2007 (availablevia a link under Article 14.1.a. above). There are also legal gateways in place to permitthe FIU to obtain additional information from other domestic authorities and to share theinformation it receives with those other authorities or with its foreign counterparts. Thereare also legal gateways to permit the other domestic authorities to volunteer informationto the FIU or amongst themselves or with foreign counterparts. (See under Article 14above).

The sharing of information is regularly followed up by requests for the freezing,confiscation and repatriation of funds under the mutual legal assistance process andGuernsey has very well developed systems in this area (See below under Articles 54, 55and 57).

Guernsey law does not require an MoU or other formal agreement to be in place beforeproviding international cooperation, but the authorities will sign such agreements ifrequired by another jurisdiction.

1



Guernsey has also recently taken steps to enhance its capacity to freeze, confiscate and repatriate assets, including n cases where there is no mutual legal assistance request, by the introduction of a dedicated International Cooperation and Asset Recovery Team - see below.

1526

Please provide examples of the implementation of those measures, including related court or othercases, statistics etc.

Guernsey’s Asset Recovery Policy (see under Article 5) reiterates its political commitmentto supporting international efforts for the recovery and repatriation of stolen andmisappropriated assets. This is supported by the following measures:

A dedicated International Cooperation and Asset Recovery Team (ICART) has recently

been established as a joint legal and law enforcement initiative. Its primary focus is the

detection, freezing and confiscation of criminal proceeds of foreign origin and the

repatriation of those proceeds.

The Attorney General (the central authority for mutual legal assistance) has issued guidance on the assistance that Guernsey can provide in respect of asset recovery which is published on the government website. This is in the process of being updated and is expected to be completed by the end of 2017. The current version is available here: <https://www.gov.gg/article/4765/Advice--Assistance>

The FIU has signed several Memoranda of Understanding - see under Article 14.

There are internal process documents and manuals that cover the provision of assistance but they are not available online. Copies can be provided on request.

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1529


None.

1


1530


1531


None.

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52. Prevention and detection of transfers of proceeds of crime


1. Without prejudice to article 14 of this Convention, each State Party shall take such measures as may be necessary, in accordance with its domestic law, to require financial institutions within its jurisdiction to verify the identity of customers, to take reasonable steps to determine the identity of beneficial owners of funds deposited into high-value accounts and to conduct enhanced scrutiny of accounts sought or maintained by or on behalf of individuals who are, or have been, entrusted with prominent public functions and their family members and close associates. Such enhanced scrutiny shall be reasonably designed to detect suspicious transactions for the purpose of reporting to competent authorities and should not be so construed as to discourage or prohibit financial institutions from doing business with any legitimate customer.


(Y) Yes0

1522


The regulations for financial services businesses and prescribed businesses ( lawyers,

accountants and estate agents) referred to under Article 14 above provide as follows;

· Regulation 3 - An assessment must be made of the risks associated with the

financial services business, with specific business relationships and occasional

transactions (i.e. those in excess of £10,000, whether carried out in a single

transaction or by 2 or more linked transactions).

· Regulation 3 - Risk assessments must be regularly reviewed and there must be

policies procedures and controls in place that are appropriate and effective

having regard to the assessed risk.

Regulation 4 - Client due diligence (CDD) must be carried out when establishing a business relationship or carrying out an occasional transaction - this involves the identification of the client, persons acting on behalf of the client, any beneficial owners or underlying principals or any other person on whose behalf.

· the client is acting. Identity must be verified using identification data (defined as

reliable, independent source documents, data or other information.

· Regulation 5(1) - enhanced CDD must be carried out on foreign PEPs, which

includes family members and close associates.) Domestic PEPs are subject to

due diligence and are also subject to enhanced due diligence if they come within

one of the alternative criteria for applying enhanced due diligence. These are that

the client is from a jurisdiction which does not, or does not sufficiently, apply the

FATF standards, or the business relationship or occasional transaction is

considered to be, or has been assessed as, high risk. Domestic PEPs will be

made subject to enhanced due diligence under legislation which is expected to

come into force early in 2018.

· Regulation 5(2) - The specific requirements for enhanced CDD are to obtain

senior management approval for the business relationship/occasional transaction

1



or for continuing an existing business relationship with a PEP, to take reasonable

measures to establish the source of funds or wealth of client, beneficial owner,

and underlying principal, to carry out more frequent and more extensive ongoing

monitoring, and obtain additional information about identification or source of

funds as appropriate to the particular case.

· Regulation 9 - if a business cannot comply with the CDD obligations it must

terminate an existing business relationship or refuse to enter into a new business

relationship or carry out an occasional transaction as the case may be, and

consider whether a suspicious activity report should be made.

· Regulation 10 - Reliance may only be placed on written confirmation of identity

and other matters from a third party if that party is from an Appendix C

jurisdiction, or alternatively is another branch or member of the same group as the

financial services business, is subject to, and supervised in respect of, obligations

to meet the FATF standards and its parent body is from an Appendix C

jurisdiction. In either situation, in order for the financial services business to rely

on the information from the third party it is obligatory for the third party to keep

identification data and other relevant documents and to make copies available to

the financial services business upon request without delay.

· Regulation 11 - A financial services business must carry out ongoing and

effective monitoring of business relationships, including reviewing identification

data, (particularly for high risk relationships or clients) and scrutinising

transactions or other activity (particularly complex or large and unusual

transactions or unusual patterns of transactions.

There are corresponding provisions in place in Schedule 16 to the Alderney eGambling Regulations 2009 referred to under Article 14.

1526


Both the Guernsey Financial Services Commission and the Alderney Gambling Control Commission publish detailed guidance, reports and other material in relation to the implementation of the regulations. See under Article 14 for the rules and guidance in the Guernsey Financial Services Commission Handbooks and the Alderney Gambling Control Commission guidance document. Further information is available on the Guernsey Financial Services Commission’s website via this link <https://www.gfsc.gg/commission/financial-crime> and on the Alderney Gambling Control Commission’s website via this link <https://www.gamblingcontrol.org/regulation-framework/amlcft-resources/> Further information about the high level of implementation of these measures is available in Guernsey’s 2016 Moneyval report available here: <https://rm.coe.int/report-on-fourth-assessment-visit-anti-money-laundering-and-combating-/16807160f3>

1




2. In order to facilitate implementation of the measures provided for in paragraph 1 of this article, each State Party, in accordance with its domestic law and inspired by relevant initiatives of regional, interregional and multilateral organizations against money-laundering, shall:

(a) Issue advisories regarding the types of natural or legal person to whose accounts financial institutions within its jurisdiction will be expected to apply enhanced scrutiny, the types of accounts and transactions to which to pay particular attention and appropriate account-opening, maintenance and record-keeping measures to take concerning such accounts; and


(Y) Yes0

1522


Under the Criminal Justice (Proceeds of Crime) (Bailiwick of Guernsey) Law 1999(available via a link under Article 14.1.a above), the Guernsey Financial ServicesCommission may issue rules, instructions and guidance which the court must take intoaccount when determining whether a person has complied with the regulations. There is acorresponding provision in relation to the Alderney Gambling Control Commission underthe Alderney eGambling Ordinance, 2009 (also available via a link under Article 14.1.aabove).

The Guernsey Financial Services Commission has issued detailed advice on how to complywith the regulations on enhanced due diligence, risks presented by natural or legalpersons and account opening, maintenance and record keeping measures in theHandbooks referred to under Article 14, and this is underpinned by additional advisories inthe form of guidance notes, typologies and other documents which is published on itswebsite.

The Alderney Gambling Control Commission has done the same in its guidance document(also referred to under Article 14) and in further material published on its website.

In addition, compliance with enhanced CDD obligations is informed by guidance,typologies, red flags and case studies related to financial crime published on the FIUwebsite.

The advice and further information provided by the Guernsey Financial Services Commission, the Alderney Gambling Control Commission and the FIU is regularly reviewed and revised as necessary to take account of international initiatives relating to money laundering, particularly those of the FATF and Moneyval (including public statements). Warning notices are issued by the Financial Services Commission and the Alderney Gambling Control Commission after every FATF plenary, and businesses are legally obliged to comply with these notices.

1

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See under Article 14 for links to the Guernsey Financial Services Commission Handbooksand the Alderney Gambling Control Commission guidance and for a link to the GuernseyLegal Resources Website in respect of the legislation referred to above.

1



See also under Article 52.1 for links to the relevant sections of the Guernsey FinancialServices Commission and Alderney Gambling Control Commission websites.

Specific examples of advisories relevant to due diligence etc. published on those websites are available here: <https://www.gfsc.gg/sites/default/files/Guidance%20Note%20June%202014.pdf> <https://www.gamblingcontrol.org/wp-content/uploads/2016/06/Instruction-5-Revised-Risk-Review-v3.pdf> <https://www.gfsc.gg/sites/default/files/20170720%20-%20FSB%20Instruction%2003-2017.pdf><https://www.gamblingcontrol.org/wp-content/uploads/2017/07/BSSN-29-21072017-Published.pdf>

Examples of the warning notices issued after FATF plenaries are available here: <https://www.gfsc.gg/sites/default/files/20170720%20-%20FSB%20Instruction%2003-2017.pdf> : <https://www.gamblingcontrol.org/wp-content/uploads/2017/07/BSSN-29-21072017-Published.pdf>

The FIU website may be accessed here: <http://www.guernseyfiu.gov.gg/article/5995/Financial-Intelligence-Service>




2. In order to facilitate implementation of the measures provided for in paragraph 1 of this article, each State Party, in accordance with its domestic law and inspired by relevant initiatives of regional, interregional and multilateral organizations against money-laundering, shall:

...

(b) Where appropriate, notify financial institutions within its jurisdiction, at the request of another State Party or on its own initiative, of the identity of particular natural or legal persons to whose accounts such institutions will be expected to apply enhanced scrutiny, in addition to those whom the financial institutions may otherwise identify.


(Y) Yes0

1522


The Guernsey Financial Services Commission issues warnings and public statements onits website about specific individuals or entities that present financial crime risks. Thewarnings include a request for information about possible contact with the namedindividuals or entities. The Guernsey Financial Services Commission also liaises directlywith businesses on a confidential basis about particular individuals or entities, includingrequesting follow-up information, in appropriate cases.

In addition, the FIU sends out intelligence warnings about specific high risk activity or

individuals directly to compliance officers via a secure online platform known as THEMIS

and also places fraud notices on its website.

These measures are taken on the basis of both domestic information and informationprovided by another State Party.

The extent to which a business has taken account of information provided by the Guernsey Financial Services Commission or the FIU comes within the factors that are looked at by the Guernsey Financial Services Commission during its onsite inspections. There are no findings from onsite inspections to indicate that warnings are not heeded.

1

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Warnings and public statements are available on the Guernsey Financial ServicesWebsite here: <https://www.gfsc.gg/news/category/warnings> <https://www.gfsc.gg/news/category/public-statements>

A specific example of a warning naming an individual involved in a fraud scheme is available here: <https://www.gfsc.gg/news/article/loan-broking-fraud>

The table below depicts the number of notices and types that have been issued by the

FIU for the period 2013 to date:-

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Notice Type Year

2013 2014 2015 2016 2017

Cybercrime 2 4 0 2 2

Financial liaison notices 0 4 3 14 9

Fraud notice 8 2 1 0 1

Report/guidance 3 6 4 9 1

Sanctions notice 0 40 76 54 71

Seminar/presentation 2 5 0 1 2

Total 15 61 84 80 86

The fraud notices on the FIU’s website are available here: <http://www.guernseyfiu.gov.gg/article/113888/Fraud-News>




3. In the context of paragraph 2 (a) of this article, each State Party shall implement measures to ensure that its financial institutions maintain adequate records, over an appropriate period of time, of accounts and transactions involving the persons mentioned in paragraph 1 of this article, which should, as a minimum, contain information relating to the identity of the customer as well as, as far as possible, of the beneficial owner.


(Y) Yes0

1522


Regulation 14 of the Criminal Justice (Proceeds of Crime) (Financial Services Businesses)(Bailiwick of Guernsey) Regulations, 2007 and the corresponding regulations for lawyers,accountants and estate agents (see under Article 14.1. above) specify that records,including transaction documents, all account records, all CDD information ( includingbeneficial ownership information), records of suspicious activity reports and policiesprocedures and controls must be kept for at least 5 years in a readily retrievable form andmade available to the authorities on request.

There are corresponding provisions at Schedule 16, paragraph 9 of the Alderney

eGambling Regulations 2009 (see under Article 14.1. above).

1

1526


See the information about implementation referred to under Article 52.1.

1




4. With the aim of preventing and detecting transfers of proceeds of offences established in accordance with this Convention, each State Party shall implement appropriate and effective measures to prevent, with the help of its regulatory and oversight bodies, the establishment of banks that have no physical presence and that are not affiliated with a regulated financial group. Moreover, States Parties may consider requiring their financial institutions to refuse to enter into or continue a correspondent banking relationship with such institutions and to guard against establishing relations with foreign financial institutions that permit their accounts to be used by banks that have no physical presence and that are not affiliated with a regulated financial group.


(Y) Yes0

1522


The effect of the requirements in the Banking Supervision (Bailiwick of Guernsey) Law,1994 (see under Article 14.1.a. above) is that it is not possible to establish a bank withouta physical presence. Under section 6 a licence may only be granted if the conditions inSchedule 3 are fulfilled, and under Schedule 3 a bank must have at least 2 locally residentdirectors and must maintain accounts and other records within the jurisdiction. Undersection 31 audited accounts must be made available at the offices of the bank within thejurisdiction.

Under regulation 8(1) of the Criminal Justice (Proceeds of Crime) (Financial Services Businesses) (Bailiwick of Guernsey) Regulations, 2007 (see under Article 14.1.a. above), financial services businesses are prohibited from entering into correspondent banking relationships with shell banks. Under regulation 8(2) they must take appropriate measures to ensure that they do not enter into or continue a correspondent banking relationship where the respondent is known to permit its accounts to be used by a shell bank.

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See the information about implementation referred to under Article 52.1.

1




5. Each State Party shall consider establishing, in accordance with its domestic law, effective financial disclosure systems for appropriate public officials and shall provide for appropriate sanctions for non-compliance. Each State Party shall also consider taking such measures as may be necessary to permit its competent authorities to share that information with the competent authorities in other States Parties when necessary to investigate, claim and recover proceeds of offences established in accordance with this Convention.


(Y) Yes0

1522


The authorities have considered whether disclosure systems additional to those described under Articles 7 to 11 are necessary but believe that the existing transparency mechanisms are sufficient, given the size of the jurisdiction and the very low incidence or risk of domestic corruption. The matter will be kept under review.

1

1526


See above.

1




6. Each State Party shall consider taking such measures as may be necessary, in accordance with its domestic law, to require appropriate public officials having an interest in or signature or other authority over a financial account in a foreign country to report that relationship to appropriate authorities and to maintain appropriate records related to such accounts. Such measures shall also provide for appropriate sanctions for non-compliance.


(Y) Yes0

1522


See answer 2 under Article 52.5.

1

1526


See above.

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1529


None.

1


1530


1531


None.

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53. Measures for direct recovery of property

235. Subparagraph (a) of article 53

Each State Party shall, in accordance with its domestic law:

(a) Take such measures as may be necessary to permit another State Party to initiate civil action in its courts to establish title to or ownership of property acquired through the commission of an offence established in accordance with this Convention;


(Y) Yes0

1522


The legislation governing civil proceedings in Guernsey does not limit the parties who may bring actions in the Guernsey courts. Therefore, the government of another country, including a State Party, can bring civil actions in the domestic courts without the need for any dedicated legislation to permit this.

1

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To date this has not occurred in the context of a corruption case, but an example of a government authority in another jurisdiction ( the revenue and customs service in the UK ) acting as a party in a civil action is available here: <http://www.guernseylegalresources.gg/ccm/legal-resources/law-reports/Cases/GLR2009/GLR090239.htm> This case, which concerned tax liability, demonstrates the principle that another State Party could initiate civil proceedings here.

1



236. Subparagraph (b) of article 53


...

(b) Take such measures as may be necessary to permit its courts to order those who have committed offences established in accordance with this Convention to pay compensation or damages to another State Party that has been harmed by such offences; and


(Y) Yes0

1522


Under the Criminal Justice (Compensation) (Bailiwick of Guernsey) Law, 1990 (available here: <http://www.guernseylegalresources.gg/CHttpHandler.ashx?id=71026&p=0>) when a person is convicted of a criminal offence the court may order that person to pay compensation for any loss or damage caused by that offence or any offence which is taken into consideration by the court in determining sentence. This is not limited to payments to natural persons and orders can be made in favour of the government of another jurisdiction.

1

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To date no other jurisdictions have requested compensation under the legislation.

1



237. Subparagraph (c) of article 53


...

(c) Take such measures as may be necessary to permit its courts or competent authorities, when having to decide on confiscation, to recognize another State Party’s claim as a legitimate owner of property acquired through the commission of an offence established in accordance with this Convention.


(Y) Yes0

1522


Conviction based confiscation proceedings are governed by the Criminal Justice (Proceedsof Crime) (Bailiwick of Guernsey) Law 1999 (Proceeds of Crime Law - available via a linkunder Article 14.1.a.). Under section 29(8), the court shall not order the realisation of anyconfiscation order unless a reasonable opportunity has been given for persons holding aninterest in the property to make representations to the court. The meaning of person inthis context is not limited and applies to governments in the same way as to any otherperson. Therefore the court has the power to recognise the claim of another State partyto the assets subject to confiscation.

There is a similar provision in respect of non-conviction based forfeiture of assets undersection 16 of the Forfeiture of Money, etc. in Civil Proceedings (Bailiwick of Guernsey)Law, 2007 (available via a link under Article 54.1.c below).

In practice however, it is not necessary for other jurisdictions to apply to the court in thisway because their rights to the assets may be, and regularly are, addressed by well -established non-statutory asset sharing and repatriation processes.

Any assets realized following domestic or foreign confiscation orders are paid into a non-statutory seized assets fund. The Attorney General is the competent authority for these purposes and has the power todetermine whether another jurisdiction is entitled to any confiscated assets without theneed for legislation.

The repatriation or sharing of those assets is decided on a case by case basis without theneed for legislation or a formal asset sharing agreement to be in place, but an agreementwould be signed if requested by another jurisdiction.

In appropriate cases, repatriation or asset sharing may also be achieved without the needto invoke the formal court processes for confiscation. This normally arises where there isan agreement between all parties including the owner of the assets, usually following aplea arrangement in the requesting state.

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The Attorney General has entered into an asset sharing agreement with the USA. Further information is available here: <https://www.gov.gg/article/115838/Guernsey-and-USA-government-authorities-have-signed-an-Asset-Sharing-Agreement>

1



To date, although Guernsey has provided and continues to provide assistance in corruption cases, no cases have yet reached the repatriation or asset sharing stage. There have been several instances of repatriation and asset sharing in other types of case which have been achieved using the non-statutory mechanisms outlined above.

Recent examples include the repatriation of 8 million USD to the USA in an investment fraud case in 2016, and over 10 million USD which is in the course of being sent back to the USA under an asset sharing agreement following the forfeiture of over 20 million USD in the case referred to under Article 54.c.

Supporting documents in respect of these cases can be provided on request on a confidential basis. With regard to ongoing cases, this will only be to the extent permitted by the other jurisdictions involved and will in any event be sanitised.





1529


None.

1


1530


1531


None.

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54. Mechanisms for recovery of property through international cooperationin confiscation


1. Each State Party, in order to provide mutual legal assistance pursuant to article 55 of this Convention with respect to property acquired through or involved in the commission of an offence established in accordance with this Convention, shall, in accordance with its domestic law:

(a) Take such measures as may be necessary to permit its competent authorities to give effect to an order of confiscation issued by a court of another State Party;


(Y) Yes0

1522


The confiscation orders of another country can be enforced after being registered in theRoyal Court of Guernsey.

The Criminal Justice (Proceeds of Crime) (Bailiwick of Guernsey) (Enforcement of Overseas Confiscation Orders) Ordinance, 1999 (available here: <http://www.guernseylegalresources.gg/CHttpHandler.ashx?id=67496&p=0>) modifies the confiscation provisions at sections 2 to 24 of the Criminal Justice (Proceeds of Crime) (Bailiwick of Guernsey) Law 1999 (Proceeds of Crime Law - available via a link under Article 14.1.a.), to put in place a regime for enforcing overseas orders that mirrors the regime for domestic orders. Such differences as exist are included to facilitate the enforcement of overseas orders.

Under section 35A of the Proceeds of Crime Law this only applies to orders in countries

that have been designated, but under a 2010 amendment the legislation now specifies

that all countries are designated so effectively designation is no longer required.

Overseas orders are those made following the conviction for an offence in the relevant

country (other than drug trafficking, which is subject to an identical specific regime). This

applies to any offence that meets the test for criminal conduct, i.e. that would be an

indictable offence if it had occurred domestically, and under Guernsey law all offences

other than minor road traffic or public order offences are indictable.

Non - conviction based orders are dealt with under separate legislation - see under

Article 54.1.c.

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1526


Since 2014 Guernsey has received 3 requests to enforce an overseas confiscation order.Two of the cases are pending (in one because Guernsey is awaiting further informationfrom the requesting state and in the other because the confiscation is being legallychallenged). In the remaining case, preliminary enquiries revealed that there were no

1



assets in the jurisdiction so the matter did not proceed.

Supporting documents in respect of these cases can be provided on request on a confidential basis. With regard to ongoing cases, this will only be to the extent permitted by the other jurisdictions involved and will in any event be sanitised.





...

(b) Take such measures as may be necessary to permit its competent authorities, where they have jurisdiction, to order the confiscation of such property of foreign origin by adjudication of an offence of money-laundering or such other offence as may be within its jurisdiction or by other procedures authorized under its domestic law; and


(Y) Yes0

1522


Confiscation in Guernsey is value - based. Under the Criminal Justice (Proceeds of Crime)

(Bailiwick of Guernsey) Law 1999, following a domestic conviction the court must

determine whether a defendant has benefited from criminal conduct and, if so, assess the

value of his proceeds of criminal conduct for the purposes of making a confiscation order.

Criminal conduct is not confined to the offence for which the defendant was convicted and

includes foreign criminality (if it would be a domestic offence - see under Article

54.1.above). Under section 4, for the purposes of assessing the proceeds of criminal

conduct, any property obtained by the defendant at any time as a result of or in

connection with criminal conduct carried on by him or another person constitutes his

proceeds of crime.

Section 4 also provides that all assets held by a defendant either at conviction or within

the last 6 years (or transferred to a third party for inadequate consideration within the

last 6 years - Section 8) are assumed to be the result of or in connection with criminal

conduct and therefore liable to confiscation unless this assumption is shown to be

incorrect. No distinction is made between assets of domestic and foreign origin.

Any property belonging to a defendant, wherever located, may be included in the

assessment of benefit and if any property of foreign origin is under the control or

disposition of the defendant at the time of determination this can also be included in the

realisable amount, i.e. can be subject to a confiscation order.

1

1526


In the 2015 case of Doyle, the defendant was convicted of money laundering, and when assessing the extent to which he had benefited from criminal conduct the court included assets he had formerly held which were the proceeds of foreign criminality by a third party. The confiscation proceedings are currently ongoing. The case was not reported but

1



supporting documents can be provided on request on a confidential basis.



241. Subparagraph 1 (c) of article 54


...

(c) Consider taking such measures as may be necessary to allow confiscation of such property without a criminal conviction in cases in which the offender cannot be prosecuted by reason of death, flight or absence or in other appropriate cases.


(Y) Yes0

1522


Under the Forfeiture of Money, etc. in Civil Proceedings (Bailiwick of Guernsey) Law, 2007 (Civil Forfeiture Law - available here: <http://www.guernseylegalresources.gg/CHttpHandler.ashx?id=71020&p=0>), cash and assets in bank accounts belonging to any person are liable to forfeiture if they are the proceeds of unlawful conduct or intended for use in unlawful conduct. Unlawful conduct is any domestic conduct contrary to domestic criminal law, or any conduct overseas which is contrary to the criminal law of the place where it takes place and would have been contrary to domestic criminal law if it had taken place domestically. The unlawful conduct need not be carried out by the person holding the assets, and no conviction is necessary.

Part V of the Law permits the enforcement of overseas forfeiture orders, i.e. orders made in non-conviction based proceedings, in respect of countries that have been designated byregulations. Currently the UK and the USA have been designated. Regulations can be very quickly enacted if required to give effect to an imminent overseas request, as happened in the case of the designations currently in place. These are of the UK and the USA.

1

1526


Guernsey has recently executed a USA non- conviction based forfeiture order in relation

to over 20 million USD resulting from wire fraud. While this is not a corruption case, it

demonstrates the willingness of Guernsey’s authorities and the capacity of its legal

framework to enforce non- conviction based forfeiture orders in very significant cases.

Supporting documents in respect of this case can be provided on request on a confidential basis to the extent permitted by the other jurisdiction involved and will in any event be sanitised.

1




2. Each State Party, in order to provide mutual legal assistance upon a request made pursuant to paragraph 2 of article 55 of this Convention, shall, in accordance with its domestic law:

(a) Take such measures as may be necessary to permit its competent authorities to freeze or seize property upon a freezing or seizure order issued by a court or competent authority of a requesting State Party that provides a reasonable basis for the requested State Party to believe that there are sufficient grounds for taking such actions and that the property would eventually be subject to an order of confiscation for purposes of paragraph 1 (a) of this article;


(Y) Yes0

1522


Criminal cases

Under section 26 to 29 of the Criminal Justice (Proceeds of Crime) (Bailiwick of Guernsey)Law 1999 (Proceeds of Crime Law - available via a link under Article 14.1.a above),restraint orders and charging orders, i.e. freezing or seizing orders, may be made topreserve assets in at the request of another country. This applies either where relevantproceedings have been or are to be instituted there or which may result in an externalconfiscation order being made, or where there is a relevant criminal investigation in thatcountry. The Criminal Justice (Proceeds of Crime) (Bailiwick of Guernsey) (Enforcement ofOverseas Confiscation Orders) Ordinance, 1999 ( available via a link under Article 54.1.aabove) modifies sections 26 to 29 of the Proceeds of Crime Law to put in place a regimethat mirrors the regime for domestic cases.

Under the legislation there is no requirement for a corresponding order to be in place inthe other country. All that needs to be shown is that there are reasonable grounds tobelieve that an external confiscation may be made, or that there is reasonable cause tobelieve that the alleged offender has benefited from his criminal conduct. This will requirethe requesting state to provide some information to demonstrate to the Guernsey courtthat these tests are met, and in this context the making of an order in another country,although not a legal requirement, would generally be seen as highly persuasive.

The points made above under Article 54.1.a. about criminal conduct and designationapply equally here.

Non- conviction based cases

Bank accounts can be frozen in support of overseas non- conviction based forfeitureinvestigations or proceedings in designated countries under section 10 of the Forfeiture ofMoney, etc in Civil Proceedings (Bailiwick of Guernsey) Law, 2007 (available via a linkunder Article 54.1.c). See under Article 54.1.c. for information on designations.

“No Consent” cases

Where a financial institution is suspicious about a request for the transfer of assets, it will

1



request the consent of the FIU to carry out the transaction. The practical effect of a

refusal by the FIU to give consent is that the assets remain frozen, because the financial

institution will invariably not proceed with the activity for fear of committing a money

laundering offence.

1526


Criminal Cases

Since 2014 Guernsey has received 7 requests to restrain assets from other jurisdictions.

Restraint orders were made in 2 cases (one of which involved alleged corruption by a

foreign PEP), 1 case involving non-PEP corruption is pending, in 3 non-corruption cases

the requests were withdrawn by the requesting jurisdiction before execution and the

remaining case, which involves a multi-jurisdictional investigation into corruption by a

foreign PEP, has been put on hold pending discussions by the different jurisdictions

involved about the appropriate way to proceed.

Supporting documents in respect of these cases can be provided on request on a

confidential basis. With regard to ongoing cases, this will only be to the extent permitted

by the other jurisdictions involved and will in any event be sanitised.

There is also a court judgment about the application of provisional measures, which pre-

dates the evaluation period. This is the 2013 case of King (unreported - a copy of the

judgment can be provided on request). This involved a successful appeal by the Attorney

General against the discharge of a restraint order obtained at the request of another

jurisdiction in respect of £97 million related to suspected tax fraud. While not a corruption

case, it demonstrates the willingness and capacity of the Guernsey authorities to deal with

provisional measures in complex high value cases.

Non- conviction based cases

To date Guernsey has received one request to enforce a non- conviction based forfeiture

order from another jurisdiction, which was successfully executed - see under Article

54.1.c.

“No Consent” cases

Garnet Investments Ltd v Chief Officer of FIS etc (2011) is an example of a refusal by the

FIU to consent to the transfer of funds. In that case the refusal was based on a suspicion

that the relevant funds, which were beneficially owned by a foreign PEP, were the

proceeds of corruption. The PEP challenged the refusal to consent. A ruling in his favour

was overturned by the Guernsey Court of Appeal, and the assets remain in Guernsey. A

summary of the Court of Appeal judgment is available here:

<http://www.guernseylegalresources.gg/article/90697/2011>. The full judgement is available online to subscribers to the Guernsey Legal Resources website, and a copy can be provided on request.

1





...

(b) Take such measures as may be necessary to permit its competent authorities to freeze or seize property upon a request that provides a reasonable basis for the requested State Party to believe that there are sufficient grounds for taking such actions and that the property would eventually be subject to an order of confiscation for purposes of paragraph 1 (a) of this article; and


(Y) Yes0

1522


Provisional measures can be applied from the investigation stage onwards - see under Article 54.2.a.

1

1526


See above under Article 54.2.a.

1





...

(c) Consider taking additional measures to permit its competent authorities to preserve property for confiscation, such as on the basis of a foreign arrest or criminal charge related to the acquisition of such property.


(Y) Yes0

1522


Provisional measures can be applied from the investigation stage onwards - see under Article 54.2.a.

1

1526


See under Article 54.2.a.

1





1529


None.

1


1530


1531


None.

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55. International cooperation for purposes of confiscation


1. A State Party that has received a request from another State Party having jurisdiction over an offence established in accordance with this Convention for confiscation of proceeds of crime, property, equipment or other instrumentalities referred to in article 31, paragraph 1, of this Convention situated in its territory shall, to the greatest extent possible within its domestic legal system:

(a) Submit the request to its competent authorities for the purpose of obtaining an order of confiscation and, if such an order is granted, give effect to it; or

(b) Submit to its competent authorities, with a view to giving effect to it to the extent requested, an order of confiscation issued by a court in the territory of the requesting State Party in accordance with articles 31, paragraph 1, and 54, paragraph 1 (a), of this Convention insofar as it relates to proceeds of crime, property, equipment or other instrumentalities referred to in article 31, paragraph 1, situated in the territory of the requested State Party.


(Y) Yes0

1522


The competent authority for obtaining any confiscation order is the Attorney General, on

receipt of a letter of request (LOR) from the requesting jurisdiction. Guernsey’s

international cooperation processes are long established and are very well known by all

the other domestic authorities. Any LOR sent to a different authority will be passed to the

Attorney General immediately. All LORs are reviewed by a specialist lawyer and a

paralegal.

The powers under which the Attorney General may act to give assistance to otherjurisdictions are as set out under Article 54. The process for giving effect to them is asfollows:

A decision is taken as to whether to accede to the request, to reject it, to seekclarification or to ask the Guernsey Border Agency (GBA) to undertake preliminaryenquiries to ensure that the relevant assets are within the jurisdiction. Minor defects inan LOR do not preclude preliminary enquiries from being undertaken whilst the defect isresolved with the requesting jurisdiction. The LOR is then forwarded to the GBA toprepare the necessary court application in draft. The draft application is then returned tothe Attorney General’s Chambers and checked by a specialist lawyer before beingapproved by the Attorney General (or Solicitor General), who will indicate their consent tothe application being put before the Court by signing it. The application will then be madeto the court by a lawyer from the Attorney General’s Chambers. If the application issuccessful, the court order will be served on the parties holding the relevant assets andpassed to HM Sheriff for execution as appropriate. The requesting state will also beinformed.

This procedure applies to all foreign confiscation requests, whether for conviction basedand non-conviction based confiscation, and whether or not there is a foreign court order.

Information on this procedure is made available to foreign authorities via the guidance

1



referred to under Article 51.3 above. Specific information is also provided on a bilateral basis throughout the process in relation to particular requests.

1526


There is an internal procedures manual setting out the process which is available onlinevia a staff portal and can be provided on request.

An analysis of the statistics relating to all LORs since 2010 demonstrates that the Attorney General has never declined to execute a confiscation request from another jurisdiction. The only circumstances in which a request has not been executed is where preliminary enquiries have revealed that there are no relevant assets within the jurisdiction, where the LOR contains insufficient information (in which case additional information will be requested and the case will be taken forward once the necessary information has been provided) or where the requesting state has withdrawn the request prior to execution. The analysis also shows that the time taken to execute an LOR is 84 days on average. This includes non-urgent cases and cases where it is not possible to proceed immediately (e.g. where the requesting state asks for matters to be put on hold while it explores alternative courses of action domestically). Urgent cases are always dealt with as a priority and in practice, most confiscation requests are executed in a shorter time than the average. The statistics and analysis are available online via a staff portal and can be provided on request.

1




2. Following a request made by another State Party having jurisdiction over an offence established in accordance with this Convention, the requested State Party shall take measures to identify, trace and freeze or seize proceeds of crime, property, equipment or other instrumentalities referred to in article 31, paragraph 1, of this Convention for the purpose of eventual confiscation to be ordered either by the requesting State Party or, pursuant to a request under paragraph 1 of this article, by the requested State Party.


(Y) Yes0

1522


Identification and tracing

Under Part III of the Criminal Justice (Proceeds of Crime) (Bailiwick of Guernsey) Law1999 ( available via a link under Article 14.1.a above) investigative court orders(production orders, entry search and seizure orders, customer information orders andaccount monitoring information orders) may be obtained in support of an investigationinto whether a person has engaged in or benefited from criminal conduct (which coversinstrumentalities, as they are relevant to the way in which criminal conduct was carriedout)) or into the whereabouts of the proceeds of criminal conduct. See under Article54.1.a. for the meaning of criminal conduct, which includes aiding and abetting and otherancillary offences.

These provisions are not restricted to domestic investigations and are regularly invoked insupport of foreign investigations.

In cases of serious or complex fraud, under the Criminal Justice (Fraud Investigation)(Bailiwick of Guernsey) Law, 1991 (available via a link under Article 14.1.b above) theAttorney General may require a person under investigation or any other person to answerquestions or to produce specified documents. These provisions are also not restricted todomestic investigations and are regularly invoked in support of foreign investigations.

Production orders, entry search and seizure orders, customer information orders, accountmonitoring information orders and disclosure orders may be made in respect of overseasnon-conviction based investigations in designated countries under section 47 of theForfeiture of Money, etc in Civil Proceedings (Bailiwick of Guernsey) Law, 2007 (availablevia a link under Article 54.1.c above). See under Article 54.1.c. for information ondesignations. Freezing and Seizing

As indicated under Article 54.2.a. there are powers to freeze and seize the proceeds of

crime in support of other jurisdictions. Specific provision is also made for providing

assistance in respect of instrumentalities, under the Criminal Justice (International Co-

operation) (Enforcement of Overseas Forfeiture Orders) (Bailiwick of Guernsey)

Ordinance, 2007 (available here:

<http://www.guernseylegalresources.gg/article/97882/Criminal-Justice-International-Co-operation-Enforcement-of-Overseas-Forfeiture-Orders-Bailiwick-of-Guernsey-Ordinance-2007-Consolidated-text>). This gives the court powers of seizing and confiscation in

1



support of overseas forfeiture orders, that is, orders for the forfeiture and destruction or disposal of anything in respect of which an offence was committed or which was used or intended for use in connection with the commission of an offence. The Ordinance is made under section 8 of the Criminal Justice (International Co-operation) (Bailiwick of Guernsey) Law, 2001 (available here: <http://www.guernseylegalresources.gg/article/97880/Criminal-Justice-International-Co-operation-Bailiwick-of-Guernsey-Law-2001-Consolidated-text>) and this specifies that it only applies to orders from countries that have been designated. However, under a 2010 amendment the legislation now specifies that all countries are designated so effectively designation is no longer required.

The implementation of these measures under the mutual legal assistance process is underpinned by, and is in addition to, significant activity being carried out at an intelligence level by the FIU - see under Article 56.

1526


Identification and tracing

Examples of assistance given in cases where there is an investigation into allegedcorruption include 1 production order made in 2014, 3 production orders made in 2015, 1production order made in 2016. In 2017 so far, 1 production order has been made andthere are some recently received requests which are pending subject to the provision offurther information by the requesting state.

Supporting documents in respect of these cases can be provided on request on a

confidential basis. With regard to ongoing cases, this will only be to the extent permitted

by the other jurisdictions involved and will in any event be sanitised.

Freezing and Seizing

See above under Article 54.2.a.

1




3. The provisions of article 46 of this Convention are applicable, mutatis mutandis, to this article. In addition to the information specified in article 46, paragraph 15, requests made pursuant to this article shall contain:

(a) In the case of a request pertaining to paragraph 1 (a) of this article, a description of the property to be confiscated, including, to the extent possible, the location and, where relevant, the estimated value of the property and a statement of the facts relied upon by the requesting State Party sufficient to enable the requested State Party to seek the order under its domestic law;

(b) In the case of a request pertaining to paragraph 1 (b) of this article, a legally admissible copy of an order of confiscation upon which the request is based issued by the requesting State Party, a statement of the facts and information as to the extent to which execution of the order is requested, a statement specifying the measures taken by the requesting State Party to provide adequate notification to bona fide third parties and to ensure due process and a statement that the confiscation order is final;

(c) In the case of a request pertaining to paragraph 2 of this article, a statement of the facts relied upon by the requesting State Party and a description of the actions requested and, where available, a legally admissible copy of an order on which the request is based.


(Y) Yes0

1522


Guernsey would include the information set out above in any request that it made. It does not require any additional information to be included in the requests that it makes or receives.

1

1526


There is an internal procedures manual setting out the process for incoming or outgoingrequests which is available online via a staff portal and can be provided on request.

See above under Article 51.3 in relation to guidance to other jurisdictions for incoming requests.

1




4. The decisions or actions provided for in paragraphs 1 and 2 of this article shall be taken by the requested State Party in accordance with and subject to the provisions of its domestic law and its procedural rules or any bilateral or multilateral agreement or arrangement to which it may be bound in relation to the requesting State Party.


(Y) Yes0

1522


The legal basis for making or giving effect to requests for assistance is as set out under Article 54 above. The Attorney General treats all outgoing or incoming requests as confidential and abides by any applicable requirements or restrictions under domestic legislation e.g. legislation on human rights or data protection

1

1526


The Attorney General has declined to provide assistance in cases believed to be politically motivated. Supporting documents in respect of these cases can be provided on request on a confidential and sanitised basis.

1




5. Each State Party shall furnish copies of its laws and regulations that give effect to this article and of any subsequent changes to such laws and regulations or a description thereof to the Secretary-General of the United Nations.


(Y) Yes0

1527

Please provide a reference to the date these documents were transmitted, as well as a description ofany documents not yet transmitted.

N/A, as Guernsey’s status with the United Nations is not that of a State Party and it does not have a direct relationship with the United Nations.

Guernsey would be happy to provide copies of the legislation referred to above to the United Kingdom for onward transmission to the UN secretariat.

1




6. If a State Party elects to make the taking of the measures referred to in paragraphs 1 and 2 of this article conditional on the existence of a relevant treaty, that State Party shall consider this Convention the necessary and sufficient treaty basis.


(N) No0

1522


N/A - there is no requirement under Guernsey law or as a matter of practice for a treaty in order to comply with this article.

1

1526


N/A

1




7. Cooperation under this article may also be refused or provisional measures lifted if the requested State Party does not receive sufficient and timely evidence or if the property is of a de minimis value.


(Y) Yes0

1522


The procedures described under this article are not subject to any de minimis threshold. The court can only exercise its powers if the necessary legal tests are met (e.g. that there are reasonable grounds to believe that a person has benefited from criminal conduct). This will not be met unless the requesting state has provided adequate information. In addition, the Attorney General will not approve applications to the court where the information provided by the requesting state is insufficient, and will always act in a manner which complies with Guernsey’s human rights legislation.

1

1526


The Attorney General has previously declined to provide assistance to jurisdictions where it has been requested in connection with offences that are subject to the death penalty, without an undertaking that such a sentence would not be imposed. Supporting documents in respect of these cases can be provided on request on a confidential and sanitised basis. With regard to ongoing cases, this will only be to the extent permitted by the other jurisdictions involved.

1




8. Before lifting any provisional measure taken pursuant to this article, the requested State Party shall, wherever possible, give the requesting State Party an opportunity to present its reasons in favour of continuing the measure.


(Y) Yes0

1522


As indicated above, provisional measures on behalf of another jurisdiction can only be obtained via a court order made on the application of the Attorney General. The court therefore does not lift these measures without hearing representations from the Attorney General. The Attorney General liaises with the jurisdiction in question as a matter of course to obtain its reasons for wishing the provisional measure to remain in place and will then address the court accordingly.

1

1526


A recent example involved an application for a declaration about the scope of a restraint order that had been obtained on behalf of another jurisdiction. The order applied to significant assets belonging to an advisor to a foreign PEP that were believed to the proceeds of corruption, and a successful application might have led to the assets being released. The Attorney General liaised with the requesting state and successfully opposed the application. There is currently a discussion between the court and the parties as to possible redaction of the judgement so it is not publicly available. Further information can be provided on a confidential basis.

1




9. The provisions of this article shall not be construed as prejudicing the rights of bona fide third parties.


(Y) Yes0

1522


There are measures under sections 6, 7, 25, 29, 30 and 31 of the Criminal Justice

(Proceeds of Crime) (Bailiwick of Guernsey) Law 1999 (available via a link under Article

14.1.a.) which give interested parties the opportunity to be heard by the court and which

ensure that the amount realised under a domestic or foreign confiscation order excludes

priority obligations and third party interests.

Any person who wishes to challenge an application for forfeiture under section13 of the Forfeiture of Money, etc. in Civil Proceedings (Bailiwick of Guernsey) Law, 2007 (available via a link under Article 54.1.c.) has the right to be heard. Under section 16 there is a right of appeal against forfeiture and, under section 18, a person who claims that any money detained or frozen belongs to him may apply to the court for the money or part of it to be released to him. This applies to legal or natural persons.

1

1526


In the case referred to under Article 55.8, a third party with an interest in the case was

joined as a party and made representations to the court.

As indicated under Article 54.1.a, there is currently an ongoing legal challenge by a third

party in relation to the enforcement of a foreign confiscation order. Supporting documents

in respect of this case can be provided to the extent permitted by the other jurisdiction

involved and will in any event be sanitised.

In the case involving the execution of a non- conviction based forfeiture order referred to

under Article 54.1.c, no third party rights were involved. The right of an interested party to

be heard has been implemented in the context of domestic non-conviction based

forfeiture in the following cases:

· In re Forfeiture of money (2011) (Guernsey Judgment No. 26/2011);

· In the matter of Forfeiture of Money (2014) (Guernsey Judgment No. 23/2014);

· Forfeiture of Money in Civil Proceedings (2017) (Guernsey Judgment No.8/2017).

These cases are referred to here: <http://www.guernseylegalresources.gg/article/90622/Unreported-Judgments>

The full judgements are available online to subscribers to the Guernsey Legal Resources website, and copies can be provided on request.

1





1529


None.

1


1530


1531


None.

1



56. Special cooperation

256. Article 56

Without prejudice to its domestic law, each State Party shall endeavour to take measures to permit it to forward, without prejudice to its own investigations, prosecutions or judicial proceedings, information on proceeds of offences established in accordance with this Convention to another State Party without prior request, when it considers that the disclosure of such information might assist the receiving State Party in initiating or carrying out investigations, prosecutions or judicial proceedings or might lead to a request by that State Party under this chapter of the Convention.


(Y) Yes0

1522


Section 8 of the Disclosure (Bailiwick of Guernsey) Law, 2007 (available via a link underArticle 14.1 a. above) enables a police officer to disclose any information obtained by himin connection with his functions to other jurisdictions. Police officer is defined as includinga customs officer so the gateway applies to member of the FIU as well as to other lawenforcement officials.

The FIU regularly and proactively makes spontaneous disseminations of intelligencerelating to assets of foreign origin within the jurisdiction. In addition, information isspontaneously disseminated on a law enforcement to law enforcement basis.

These disseminations are often followed up by providing the information in evidential formunder the mutual legal assistance process.

1

1526


The statistics on international disseminations for the last 3 years are as follows:

2014 2015 2016

Total SARs received 797 978 1368

Total number of disseminations 610 671 1076

Total number of International disseminations 520 539 868

Total number of local disseminations 90 132 208

1





1529


None.

1


1530


1531


None.

1



57. Return and disposal of assets


1. Property confiscated by a State Party pursuant to article 31 or 55 of this Convention shall be disposed of, including by return to its prior legitimate owners, pursuant to paragraph 3 of this article, by that State Party in accordance with the provisions of this Convention and its domestic law.


(Y) Yes0

1522


The Attorney General may authorise payments of confiscated assets to any party, as described above under Article 53.c. As a matter of practice, the Attorney General’s policy in dealing with confiscated assets is to give priority to legitimate owners of property and victims of crime wherever possible.

1

1526


To date, the Attorney General has not received a direct request from a legitimate owner. In the 2016 case referred to under Article 53.c. the assets were returned to the requesting state on the basis that they would be used to compensate victims of the criminality in question.

1




2. Each State Party shall adopt such legislative and other measures, in accordance with the fundamental principles of its domestic law, as may be necessary to enable its competent authorities to return confiscated property, when acting on the request made by another State Party, in accordance with this Convention, taking into account the rights of bona fide third parties.


(Y) Yes0

1522


This may be done under the process described above under Article 53.c. To the extent that a case involved any identifiable third party rights other than those of legitimate owners or victims, these rights would be taken into account.

1

1526


To date there has not been a case involving identifiable third party rights other than those of legitimate owners or victims.

1




3. In accordance with articles 46 and 55 of this Convention and paragraphs 1 and 2 of this article, the requested State Party shall:

(a) In the case of embezzlement of public funds or of laundering of embezzled public funds as referred to in articles 17 and 23 of this Convention, when confiscation was executed in accordance with article 55 and on the basis of a final judgement in the requesting State Party, a requirement that can be waived by the requested State Party, return the confiscated property to the requesting State Party;


(Y) Yes0

1522


This may be done under the process described above under Article 53.c.

1

1526


A case of this kind has not arisen to date.

1





...

(b) In the case of proceeds of any other offence covered by this Convention, when the confiscation was executed in accordance with article 55 of this Convention and on the basis of a final judgement in the requesting State Party, a requirement that can be waived by the requested State Party, return the confiscated property to the requesting State Party, when the requesting State Party reasonably establishes its prior ownership of such confiscated property to the requested State Party or when the requested State Party recognizes damage to the requesting State Party as a basis for returning the confiscated property;


(Y) Yes0

1522



1

1526


A case of this kind has not arisen to date.

1





...

(c) In all other cases, give priority consideration to returning confiscated property to the requesting State Party, returning such property to its prior legitimate owners or compensating the victims of the crime.


(Y) Yes0

1522


This may be done under the process described above under Article 53.c. As indicated above, the Attorney General’s policy in dealing with confiscated assets is to give priority to legitimate owners of property and victims of crime.

1

1526


In the 2016 case referred to under Article 53.c. the assets were returned to the requesting state on the basis that they would be used to compensate victims of the criminality in question.

1




4. Where appropriate, unless States Parties decide otherwise, the requested State Party may deduct reasonable expenses incurred in investigations, prosecutions or judicial proceedings leading to the return or disposition of confiscated property pursuant to this article.


(Y) Yes0

1522


This may be done under the process described above under Article 54.c. and would be agreed with the requesting state in an appropriate case.

1

1526


This was not considered necessary in the cases referred to under Article 54.c above.

1




5. Where appropriate, States Parties may also give special consideration to concluding agreements or arrangements, on a case-by-case basis, for the final disposal of confiscated property.


(Y) Yes0

1522



1

1526


Final disposal is always agreed on a case by case basis. This approach was adopted in the cases referred to under Article 54.c above.

1





1529


None.

1


1530


1531


None.

1



58. Financial intelligence unit

266. Article 58

States Parties shall cooperate with one another for the purpose of preventing and combating the transfer of proceeds of offences established in accordance with this Convention and of promoting ways and means of recovering such proceeds and, to that end, shall consider establishing a financial intelligence unit to be responsible for receiving, analysing and disseminating to the competent authorities reports of suspicious financial transactions.


(Y) Yes0

1522


The Guernsey FIU is the Financial Intelligence Service. The primary objective of the FIS is

to receive, analyse and disseminate financial intelligence in association with other

agencies, in order to combat crime and terrorist financing, including bribery and

corruption, both locally and internationally whilst adhering to the legal and regulatory

framework.

The most common destination of intelligence disseminated outside the Bailiwick is to

International FIUs.

The FIS is an active member of Egmont and proactively engages with foreign counterparts - see the information provided under above under Article 14.

1

1526


See above under Article 14.

The FIU website may be accessed here: <http://www.guernseyfiu.gov.gg/article/5995/Financial-Intelligence-Service>

1





1529


None.

1


1530


1531


None.

1



59. Bilateral and multilateral agreements and arrangements

268. Article 59

States Parties shall consider concluding bilateral or multilateral agreements or arrangements to enhance the effectiveness of international cooperation undertaken pursuant to this chapter of the Convention.


(Y) Yes0

1522


Guernsey law does not require an MoU or other formal agreement to be in place before providing international cooperation, but the authorities will sign such agreements if required by another jurisdiction. Guernsey has also had a number of multilateral agreements extended to it.

1

1526


Examples of bilateral agreements are given under Article 14.1 b and Article 53.c.

An example of a multilateral agreement extended to Guernsey is the Council of Europe 1990 Convention on Laundering, Search, Seizure and Confiscation of the Proceeds from Crime, which was extended to Guernsey by a declaration made by the UK in 2002. Furtherinformation is available here: <http://www.coe.int/en/web/conventions/full-list/-/conventions/treaty/141/declarations?p_auth=CYQNBo8n>

1





1529


None.

1


1530


1531


None.

1



B. Other information

B. Other information

270. Other information

Please provide any other information you believe is important for the Conference of the States Parties to the United Nations Convention against Corruption to consider at this stage regarding aspects of, or difficulties in, implementing the Convention other than those mentioned above.

511

Please provide any other information you believe is important for the Conference of the StatesParties to the United Nations Convention against Corruption to consider at this stage regardingaspects of or difficulties in implementing the Convention other than those mentioned above

None.

1

