Saving and Investing
By Willem van der Merwe, Global Solutions Specialist
What is MONEYVAL? MONEYVAL is an independent body that evaluates how countries adhere to international standards for combating money laundering and terrorist financing. It operates as a permanent monitoring body under the Council of Europe.
Significance of the MONEYVAL Report for South African clients The recent MONEYVAL report on Guernsey holds substantial importance for South African clients that are currently using or considering Guernsey for their estate planning structures. Guernsey has long been favoured for estate planning due to its robust legal framework, political stability, and efficient tax environment. The positive MONEYVAL report, published on February 10,2025, reaffirms Guernsey's strong stance against financial crime, further solidifying its reputation as a secure and well-regulated financial centre. This report provides South African clients with the assurance that their assets are protected and managed in compliance with international standards, ensuring their financial activities are conducted in a secure environment, free from the risks associated with financial crime.
By choosing Guernsey, South African clients benefit from a jurisdiction committed to maintaining high standards of financial integrity, ensuring their estate planning structures are both effective and secure.
Key findings of the MONEYVAL Report
The MONEYVAL evaluation, conducted in April 2024, assessed Guernsey's compliance with international standards in anti-money laundering and combating the financing of terrorism (AML/CFT). The report commended Guernsey for its comprehensive measures and high-quality risk assessments, which have significantly strengthened its legal and regulatory AML/ CFT framework since the last evaluation.
Guernsey achieved high effectiveness ratings for its implementation of sanctions on terrorist financing, oversight of non-profit organisations, and sanctions on financing the proliferation of weapons of mass destruction. These ratings place Guernsey alongside the UK and the US as one of the few jurisdictions to achieve such high marks.
Enhancing Guernsey's reputation
The positive outcome of the MONEYVAL report is a testament to the collective efforts of Guernsey's regulatory bodies, industry participants, and other stakeholders. It underscores the jurisdiction's commitment to maintaining a safe and secure financial environment, which is crucial for attracting and retaining clients in the competitive global market.
Despite regulatory challenges, Guernsey's strong performance in the MONEYVAL evaluation demonstrates its ability to balance stringent compliance requirements with a proportionate and effective supervisory approach. This balance not only enhances Guernsey's reputation but also provides clients with the confidence that their financial activities are conducted in a well-regulated and secure environment.
Key takeaway
The recent MONEYVAL report has solidified Guernsey's standing as a reputable and robust financial jurisdiction. By continuing to maintain high standards of compliance, Guernsey is well positioned to thrive in the global financial landscape.
Disclaimer: The information contained herein are for the purposes of general guidance on matters of interest and is not intended to be legal, tax, or financial advice. All information and rates mentioned are current at the date of publication.
