Crooked-cash clampdown on island

Jersey is concerned about its reputation on money laundering

Jersey estate agents and lawyers are to be included in moves to combat money laundering, say finance chiefs.

The Financial Services Commission (FSC) also said the island should continue to help other countries who think criminals' cash is hoarded in Jersey.

The report came as the island prepares for a visit by the International Monetary Fund (IMF) on 29 October.

The IMF inspection will assess Jersey against its standards to counter money laundering and terrorist financing.

FSC report in full (172K) Most computers will open PDF documents automatically, but you may need to download Adobe Acrobat Reader. Download the reader here

Guernsey, which like Jersey enjoys a reputation as a tax haven, is to be inspected by the IMF in January.

If the islands meet the criteria they will be accepted onto a "white list'' of countries deemed to have satisfactory controls against money laundering.

The FSC said in the report that it would issue codes of practice that cover the legal sector, accounting sector, estate agents and "high-value goods dealers".

The report also said there had been some concern that Jersey might be viewed as being "unco-operative" on forfeiture orders of money from criminals.

It said: "The island's response to this has been to introduce new legislation that will allow the island to assist other jurisdictions with civil asset forfeiture."

The report said Jersey was often requested to assist with the investigation of insider dealing and market manipulation carried on outside Jersey, but where evidence was held there.

"It was highlighted that legislation in this area had fallen behind the international "norm" and that this might act to limit the co-operation that could be provided and the island's response has been to overhaul legislation that deals with insider dealing and market abuse."

Jersey's economy is founded on its financial services industries, with £220bn in deposits at 48 banks.

There are 35,000 companies registered in Jersey, which has a population of just 90,000.