The risk of Jersey's finance industry and non-profit organisations (NPOs) being used to fund terrorism has been classed as medium to low.
It is the conclusion of a risk assessment report produced in response to requirements by the Financial Action Task Force (FATF), which sets the international standards on financial crime.
Whilst it finds the island's mitigation systems and controls to be adequate on the whole, it does identify a number of areas where additional action is needed.
A key recommendation is for the island to develop a more robust skills base across the public and private sectors to 'identify, investigate and supervise compliance with terrorist financing requirements.'
Jersey's Minister for External Relations says this report, Jersey's first, will set the 'baseline' for mitigating Jersey's risk of being misused by criminals.
Over the next 18 months, work will be done to determine if the medium-low rating could be lower, and Jersey's finance industry is likely to be asked to provide additional data to that end. By its nature, however, terrorist financing is constantly evolving, and we must continue to be on our guard and prepared to take action to assess and mitigate against those risks.
Lack of detail around registered non-profit organisations was also highlighted.
Whilst all NPOs have had to register with the Jersey Financial Services Commission (JFSC) since 2008, as of 31 December 2019, no assessment had been completed to identify which of the 1,100 registered NPOs might be at higher risk of being used for terrorist financing.
The report states that whilst the vast majority of NPOs are based in and raise funds in Jersey to support good causes, further work was needed to 'fully analyse the TF threat associated with these registered NPOs'.
The report was produced by the National Risk Assessment (NRA) Working Group, which included officers from the Government of Jersey, Jersey Financial Services Commission, Law Officers’ Department, States of Jersey Police, Jersey Overseas Aid, Jersey Customs & Immigration Service, and the Office of the Jersey Charity Commissioner.
It forms part of an ongoing programme of financial crime risk assessment work, and follows the publication of the island's first national risk assessment of money laundering in September 2020.