The International Monetary Fund (IMF) has
published six evaluation reports which recognise and commend
Guernsey's high standards of financial regulation, supervision
and stability along with its robust criminal justice framework.
The IMF's last evaluation reports on Guernsey were published
in November 2003. The IMF was invited to reassess
Guernsey's financial, regulatory and criminal justice structure
and that also included examining financial stability elements of
the banking and insurance sectors. These evaluations were carried
out in March and May 2010.
The resulting reports commend Guernsey as having financial
sector regulation and supervision of a high standard across all
sectors, and a legal framework which provides a sound basis for an
effective AML/CFT regime, with preventive measures being largely in
line with the FATF Recommendations.
Guernsey's Chief Minister, Lyndon Trott said: "The
regulatory framework and the Bailiwick's anti-money laundering
(AML) and combating the financing of terrorism (CFT) regime that is
now in place has been an important factor in both sustaining
Guernsey's economy and developing and maintaining
Guernsey's international reputation as an excellent place to do
business. This in turn has been an important driver in the
continuing development of Guernsey's international
"Whilst we welcome the positive evaluation reports of the
IMF, we will by no means rest on our laurels. Our place in the
global financial services economy means we need to remain proactive
in evolving our regulatory framework, and ensure that we remain in
the vanguard of international standards. Indeed the IMF reports
fully recognise that we update our regulatory regime
The evaluations were part of the IMF's global Financial
Stability Assessment Program. Guernsey was assessed as having a
high level of compliance with the international standards against
which it was judged – the 25 Basel Core Principles for
Effective Banking Supervision; the 28 Insurance Core Principles of
the International Association of Insurance Supervisors; and the
Financial Action Task Force 40 Recommendations on money laundering
and 9 Special Recommendations on terrorist financing.
The financial stability of the finance sector was also assessed
by evaluation of the vulnerabilities of the banking and insurance
industries by stress tests.
Nik van Leuven, Director General of the Guernsey Financial
Services Commission (GFSC), said: "We are pleased with the
IMF's ratings of our framework and its conclusions on the
quality of our supervision. Guernsey, like Jersey and the Isle of
Man, has emerged well from the IMF's evaluations of our
financial supervision and criminal justice frameworks. It is
apparent that Guernsey's finance sector is robust. The quality
of the standards which apply to supervised firms in Guernsey, the
effectiveness of our supervision and the reality of what firms do
in practice reflect the importance and commitment the Bailiwick
attaches to effective supervision, and deterring economic
criminals, money launderers and terrorist financiers."
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