Guernsey Financial Services Commission updates countering financial crime handbook and publishes feedback on technology use in AML/CFT/CPF controls

The Guernsey Financial Services Commission has published a feedback paper and updated sections of its Handbook on Countering Financial Crime, clarifying how firms can use technology within anti-money laundering, countering the financing of terrorism and countering proliferation financing (AML/CFT/CPF) controls. The revisions respond to consultation feedback on proposals to support greater use of technology to combat financial crime and provide additional guidance on commonly used tools including electronic verification systems and digital signatures in areas such as client onboarding, monitoring and record-keeping. The changes form part of the Commission’s Digital Finance Initiative and follow its consultation on Supporting Growth with Digital Finance, which closed in March. Respondents supported the proposed approach and suggested that greater clarity was needed on the appropriate use of technology within compliance frameworks. The Commission said the amendments are not driven by changes in international standards or recommendations from the MONEYVAL evaluation report, but are intended to remove uncertainty and support firms’ responsible use of technology to improve the effectiveness and efficiency of anti-financial crime controls. The feedback paper is the first phase of the Commission’s response to the consultation. Further feedback on other aspects of the Digital Finance Initiative will be published in due course.