By Paul O’Donoghue, Senior Correspondent
JERSEY’s FIU is doubling the number of strategic analysts on its workforce as the unit looks to help the British Crown dependency carry out more money laundering prosecutions.
Jonathan Groom, the director of the FIU (Financial Intelligence Unit), also said that he does not think it is fair to “accuse Jersey of being something it isn’t” in relation to persistent allegations that the island is a hub for money laundering.
Mr Groom said the organisation is currently in the midst of a recruitment drive which has seen its numbers swell from approximately 12 near the start of 2022 to 30 staff.
The FIU now plans to double the number of its strategic analysts from five to 10, to bring its staffing total to 35.
“There’s plenty to do, but we’re growing our strategic intelligence capabilities,” he said in an interview with AML Intelligence.
“[Securing prosecutions] is bread and butter for us. One of our purposes is to develop intelligence which can lead to prosecutions, so we’re working hard at that.”
Mr Groom was speaking in the wake of an assessment from MONEYVAL, the AML body of the Council of Europe.
The organisation gave Jersey a positive report, finding that it has made significant strides in implementing a strong AML regulatory framework.
However, it warned that Jersey’s improved rating was largely reliant on technical compliance and said that the island must put a greater focus on practical AML steps.
One of the issues highlighted was Jersey’s lack of money laundering prosecutions.
It also said that, “until very recently, the FIU did not have sufficient strategic analysis capabilities”.
Mr Groom said this is an area which Jersey’s FIU is focused on improving.
“We have grown from one strategic analyst in 2022 to five current strategic analysts,” he said.
“Overall, we are established for 10 intelligence analyst positions, in both strategic and complex areas.”
While saying that it is “not wise” to set a particular target for the number of money laundering prosecutions, Mr Groom added that there are currently “about five cases per quarter” which are investigated more closely by officials.
“It depends very much on greater insight and collaboration with the private sector to see if those numbers can go up,” he said.
The development of the FIU was one of the positive aspects that MONEYVAL cited in its recent report, noting that the organisation’s “operational independence and resources have improved significantly” since MONEYVAL’s last assessment of Jersey in 2015.
A particular improvement in the FIU was noted since 2023 – until then, the unit had operated as part of the Jersey police force. However, in July 2023, it became fully independent..
Mr Groom said improvements such as these are often not fully recognised by the media and international analysts, with Jersey still often being labelled as an illicit finance hub.
“I don’t think it’s fair to keep accusing Jersey of being something it isn’t,” he said.
“What happened in the past, happened in the past. This MONEYVAL report demonstrates what a strong position we’re in, in comparison to other jurisdictions.
“It seemingly becomes very difficult to get the media to change their narrative. If I thought that [Jersey was a money laundering hub], I wouldn’t have come to Jersey in the first place.
His comments echo those made by Ian Gorst, Jersey’s Minister for Financial Services, who said the MONEYVAL evaluation should counter the view that the island is an illicit finance hub.
Mr Gorst also explained why Jersey has chosen to keep its beneficial ownership register private, despite claims from UK MPs that fully public registers are needed to combat money laundering.
Mr Groom added he is “very cognisant” of Jersey’s reputation internationally, adding: “We’re seeking to grow the right contacts and have the right conversations with other FIUs.”
Mr Groom joined as director of Jersey’s FIU in February 2023, having previously worked in a variety of high profile compliance roles including director of global AML at HSBC and helped establish the UK’s Joint Money Laundering Intelligence Taskforce.
His appointment came shortly before the Jersey FIU became independent from the police, something Mr Groom said has made a significant difference to how it operates.
“It means we’re not working to the agenda of the police, or anyone else,” he said.
“The police are great partners, but we’re not the police,” he said, adding that while the police focus on “investigation”, Jersey’s FIU is more concerned with “intelligence”.
“Investigation is when you’re collecting evidence to prove a crime,” Mr Groom said.
“Intelligence is when you use the widest range of sources to take data, assess it and come up with a hypothesis of what you think is happening.
“What I want to do at FIU Jersey is move from a singular investigative approach to one where we can use the widest range of sources to gather lots more information.
“[This information] could then be used by regulators, or by law enforcement, or by the government. It could point to an investigative lead or a regulatory breach.”
Mr Groom said the FIU will continue to evolve as Jersey has vowed to continue improving on its MONEYVAL report and take a harder stance against illicit finance.
“Everything I’ve seen demonstrates that we’re forward looking. We have plenty to do, but we’ll do it.”
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