Bolstering Guernsey’s connections

Rupert Pleasant, Chief Executive of Guernsey Finance

Average read time: 4 minutes

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“If you want a jurisdiction that combines opportunity with rock-solid compliance, Guernsey is the place to be.”?

Following a promising start to the year with our local Industry Update event, February has been another standout month for Guernsey’s financial services sector. Notably, the island earned a successful assessment into how it combats financial crime from MONEYVAL that compares positively to most other jurisdictions. Business leaders across the island were clear about the message the result sends: “If you want a jurisdiction that combines opportunity with rock-solid compliance, Guernsey is the place to be.”?

The Bailiwick of Guernsey demonstrated that it meets the most stringent international standards, receiving pass ratings for six out of the 11 Immediate Outcomes assessing its effectiveness in the areas of anti-money laundering and combating the financing of terrorism (AML/CFT), as well as combating the financing of proliferation of weapons of mass destruction.??

The Bailiwick was one of a very small number of jurisdictions to receive more than one top rating of ‘High’, recognising its strengths in ‘the implementation of sanctions on terrorist financing and oversight of non-profit organisations’ and ‘the implementation of sanctions on financing of proliferation of weapons of mass destruction’.??

There is no doubt that the Bailiwick takes its responsibilities to mitigate the risks of money laundering and terrorist financing extremely seriously.??

We are one of the few jurisdictions to pass all 40 FATF recommendations, and Guernsey was also recognised as having comprehensive measures to ensure beneficial ownership transparency. This proves that Guernsey’s levels of transparency meet the high standards needed to operate as a well-respected international finance centre.??

This reaffirms the news that Guernsey is committed to reaching the highest international standards. We can hold our heads high knowing that this result secures the Bailiwick’s position as one of the most secure and safe jurisdictions in the world for financial services. Guernsey is absolutely open for business and is a safe, stable and excellent place to do so.?

Adding value in Europe?

The MONEYVAL assessment was a key achievement highlighted last week when our Deputy Chief Executive Barnaby Molloy was in Brussels for the Channel Island’s Brussels Office (CIBO)’s annual reception for Brussels stakeholders.?

This year marks the 15th Anniversary of the CIBO office in Brussels, and the meeting forms part of the regular programme of engagement with the EU.? In attendance were policy makers, representational offices, ambassadors, representatives from member states, and industry associations.??

Alongside government representatives for external relations for both islands and Jersey Finance’s Deputy Chief Executive, Barnaby discussed Guernsey’s expertise, political and economic stability, and sophisticated legal infrastructure.??

Few financial centres can claim the same level of expertise, experience and environment as Guernsey and Jersey. This is underpinned by the breadth and depth of service providers, something that enables us to develop niche areas of expertise that add value to businesses in the EU, and indeed around the world. Our collective and reciprocal relationship with Europe goes from strength to strength.?

Collectively, Jersey and Guernsey have almost ￡800bn NAV combined across the investment funds sector, catering for closed and open-ended funds, with specialisms in private equity, infrastructure and sustainability.? The Islands are regarded internationally as investment funds domiciles that are proportionately and pragmatically regulated.?We work with a range of fund managers, from VC to pioneering international firms.?

Two areas of expertise that Barnaby highlighted in particular were Guernsey’s specialist insurance services, including captives, ILS, and reinsurance, and Guernsey’s position as a global leader in sustainable finance.??

Since 2018, and the launch of the world's first regulated green fund designation, the Guernsey Green Fund, Guernsey has been widely acknowledged as a leader in this space.????

We will continue to build on this important partnership alongside our Jersey counterparts.??

Building ties with the British Business Bank?

This month, we were also given the opportunity to meet with senior members of the British Business Bank, a UK government-owned economic bank, to discuss collaboration with the Channel Islands' financial services industry.?????

I travelled alongside a delegation from Guernsey and Jersey to London to demonstrate the benefits of using Guernsey and Jersey for investment funds.?

We discussed global market access, substance and transparency, beneficial ownership, regulation, legal familiarity, fund structures, expertise in administration and example investments into the UK.???

The presentation was an ideal opportunity to showcase our expertise in private equity and venture capital, and we look forward to solidifying our relationship with the British Business Bank and creating a strong and regular flow of business.???

Looking ahead?

Back in Guernsey, the team here at Guernsey Finance are putting the finishing touches on our flagship Funds Forum event in May. The event will build on the success of last year’s forum, which attracted a record 500+ attendees. This year the event is titled ‘Venture to the Future’ and promises to offer specialist expertise on the latest trends within the investment and funds sector, exploring key developments within the global venture capital market – including the rise of VC-backed tech-led enterprise. The event will see a range of world-class panels and keynote speakers, plus plenty of opportunities to network with fellow attendees.??

If you are interested in attending, please contact our events team on [email protected]?

With best wishes, Rupert.