Financial Services

Introduction

The financial services industry accounts for a significant proportion of Jersey’s economy. This Brief explains the importance of the sector to the Island and to Britain, the regulatory regime and policy towards the industry.

Summary

The finance sector accounts for 45% of Jersey’s economic activity and about two thirds of tax revenue.

Jersey is a gateway for almost £500bn of foreign investment into the UK, comprising 5% of the entire stock of foreign-owned assets.

The Jersey Financial Services Commission (JFSC) is the Island’s financial regulator. Its mission is to maintain Jersey’s position as a leading international finance centre, with high regulatory standards. The priorities in its current strategy are to support growth, be risk-based and proportionate, combat financial crime and deliver excellent service.

Jersey has been recognised for taking steps to strengthen its legal and regulatory framework to combat money laundering, financing of terrorism and financing of proliferation.

In March 2026 the Government published Time to Win, the final report from its financial competitiveness programme.  Key points –

• Jersey’s financial and related professional services (FRPS) sector is the bedrock of the Island’s economy and has funded public services that would otherwise have been impossible without higher rates of tax.
• But Jersey’s FRPS sector is facing multiple and converging threats.
• Jersey’s core advantages remain real and valuable: legal certainty, political stability, strong courts, and a well-understood tax regime with tax neutrality at its heart. But Jersey is losing momentum because friction, complexity and institutional overlap have eroded advantages that were once converted into growth.
• A reset is required of how Jersey operates as a system. This reset is not about changing the brand but about execution discipline, service culture, clarity of responsibility, and a renewed hunger to win.

A report by an expert panel chaired by Sir Howard Davies commented –

Until now, Jersey has operated on the basis that it is a privilege for international customers to do business on the island. No longer. Jersey needs to accept that the privilege has shifted: it now needs to work hard to retain, promote and grow its financial services sector. There are many more options for mobile financial services businesses. This means a change in culture, policy and regulation across Government, its agencies and industry. Within Government this means policies and practices need to be re-focused on growth with buy-in across all departments.

Importance to the economy

The Statistics Jersey publication Measuring Jersey’s Economy GDP and GVA – 2024 reported that in 2024 the financial and insurances services sector accounted for £2,638 million of national income, 38.5% of the total. However, this understates the size of the total financial services sector as the follow extract from the report explains –

The Jersey Finance sector has traditionally been highly associated with both the accounting and legal sub-sectors of the economy which under the 2007 standard classification structure are recorded separately (under the professional, scientific and technical activities). Due to this association, GVA historically included these two industries as part of the estimates. To provide a comparable estimate Table 2 below details the combined relevant sub-sectors that form part of the wider Jersey financial services sector and is broadly comparable to previous estimates of the financial services sector.

The combined sector represented 45% of the total Jersey economy in 2024 and 50% of all private sector output. It is also the case that some other sectors of the economy including construction and hospitality depend heavily on the financial services sector.

The Statistics Jersey report also gives figures for gross value added per full time employee. For financial services, the figure was £260,300. The figure for the whole economy was £103,100.

There is no accurate figure for the proportion of total tax derived from financial sector activities. Most of that tax is from the earnings of workers in the sector rather than from profits and dividend payments. The Island’s chief executive has estimated that financial services account for around two thirds of all tax revenue.

Value to Britain

In February 2026, TheCityUK, the umbrella representative body for the UK’s financial services industry, in partnership with Jersey Finance and Guernsey Finance, published The Channel Islands’ contribution to UK growth and investment.

The Jersey Overview section is set out below.

• Jersey is a gateway for almost £500bn of foreign investment into the UK, comprising 5% of the entire stock of foreign-owned assets.
• £1 in every £20 of foreign investment by individuals and companies in UK-based assets is channelled via Jersey.
• Each year, Jersey banks send around £120bn of their deposits to parent operations in the UK, representing 1.5% of the funding of the whole UK banking system.
• UK net tax receipts generated by the activities of Jersey are around £2.3bn a year.
• About half the combined value held in the stewardship of the Island’s trusts and other structures, funds and banks have been invested in assets located in Britain.

In 2020, Jersey’s combined financial services sector allocated £1.44trn of capital around the world, increasing from £1.30trn in 2017. Of this total, £529bn was allocated to the UK alone. Across the period examined by Cebr (2017-2020), the UK was the most significant destination for Jersey-allocated capital.

The report included some annual average statistics for 2017-20  for Jersey’s contribution to the UK –

• Capital allocated to the UK – £553bn
• GDP supported – £62bn
• Employment supported – 951,000 jobs
• Wages supported – £24m

The report has a section on UK foreign direct investment and Jersey’s contribution –

• The UK remains a desirable destination for FDI in real estate and infrastructure. Foreign investors are drawn to the UK’s attractive investment environment, with publicly available data suggesting that overseas investors continue to dominate net investment into UK real estate.
• A significant part of FDI into UK real estate is invested through funds and holding structures in Jersey. Jersey is a centre of excellence for real estate funds, attracting international investors with its range of specialist fund structures, the expertise of its finance community, as well as its proximity and strong links to the UK.
• Jersey is also a key gateway for UK FDI from tax-exempt investors such as pension funds and sovereign wealth funds (SWFs). Research shows that of the estimated £246 bn of funds under administration in Jersey, approximately £39bn (16%) comes from pension funds and around £14bn (6%) from other tax-exempt institutional investors including SWFs. Of the £39bn pension fund assets under administration in Jersey, around 19% are invested in real estate.

Regulatory regime

The Jersey Financial Services Commission (JFSC) is the Island’s financial regulator. Its mission is to maintain Jersey’s position as a leading international finance centre, with high regulatory standards.

It supervises businesses in respect of  their compliance with the obligation to counter money laundering, terrorist financing and  proliferation.

The JFSC operates around guiding principles which are –

• reducing risk to the public of financial loss due to dishonesty, incompetence, malpractice or the financial unsoundness of financial service providers
• protecting and enhancing the reputation and integrity of Jersey in commercial and financial matters
• safeguarding the best economic interests of Jersey
• countering financial crime both in Jersey and elsewhere.

Its statutory responsibilities are set out in the Financial Services Commission (Jersey) Law 1998  and include –

• authorising, supervising, overseeing and developing financial services in Jersey
• enforcing the Commission Law
• reporting, advising, assisting and informing the Government of Jersey and public bodies developing policies
• operating the Companies Registry.

On 23 March 2026, the JFSC published its 2026 – 2030 Strategy. This set out four priorities –

Support growth

We recognise that what we do and how we do it have a significant influence on the success of financial services in Jersey. We have an important role in supporting the growth of legitimate business, by providing a simple, easy-to-understand regulatory framework. AI, virtual assets and other digital innovations present increased opportunities which competitive finance centres must continue to embrace.

Be risk-based and proportionate

We will work in partnership with industry to be more risk-based in our registry and supervisory approach, enabling earlier, more targeted interventions to help minimise more serious outcomes. This will make us more effective at fighting financial crime and protecting consumers, while reducing the regulatory burden for lower-risk businesses and activities.

Combat financial crime

Meeting our international financial crime obligations is non-negotiable. It keeps people safe, protects market integrity and is essential to attracting new business. It is in the interests of all Jersey businesses that we protect our island from being used for the purposes of financial crime.

Deliver excellent service

Delivering excellent service is good for both business and regulatory

effectiveness. By providing better and clearer support, we will help people to meet their regulatory obligations more effectively. Smoother regulatory and registry processes will also save businesses time and money, supporting island competitiveness and improved outcomes for the underlying clients. We are clear that having a service orientation is an essential part of being a successful, modern regulator and registry.

Also on 23 March 2026, the JFSC published its 2026 – 2027 Business Plan.

This details that actions that will support the priorities. Specifically, on delivering and supporting the Government of Jersey’s competitiveness programme, the actions include –

• streamlining and simplifying Schedule 2 (of the Proceeds of Crime (Jersey) Law 1999 which defines financial services businesses requiring registration with the Commission)
• enhancing the clarity of our guidance on the use of reliance
• reviewing the role of the money laundering compliance officer
• repealing the Control of Borrowing Order
• revising beneficial ownership reporting
• revising the bank licensing policy to simplify processes for new entrants.

Money laundering and financing terrorism

In September 2022 Jersey’s National Strategy for Combatting Money Laundering, the Financing of Terrorism and the Financing of Proliferation of Weapons of Mass Destruction was published.  This lists seven strategic priorities –

1. Understanding the threat and performance metrics.
2. Better information sharing and co-ordination.
3. Powers, procedures, preventative measures, and tools.
4. Enhanced capabilities of law enforcement, the justice system and private sector.
5. Risk-based supervision and risk management.
6. Transparency and ownership.
7. International strategy.

The priorities are supported by an action plan.

The Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism – MONEYVAL – is a permanent monitoring body of the Council of Europe reporting directly to the Committee of Ministers.

The aim of Moneyval is to ensure that its members have effective systems in place to counter money laundering and terrorist financing and comply with the relevant international standards.

Moneyval undertakes a number of tasks in relation to this, including being entrusted with the task of assessing compliance with all relevant international standards to counter money laundering and the financing of terrorism and the effectiveness of their implementation, as well as with the task of making recommendations to national authorities in respect of necessary improvements to their systems.

Through a dynamic process of mutual evaluations, peer review and regular follow-up of its reports, Moneyval aims to improve the capacities of national authorities to fight money laundering and the financing of terrorism more effectively.

In November 2022 Moneyval launched its fifth-round mutual evaluation process of Jersey. The report was published on 24 July 2024. The Council of Europe press release on the report is set out below –

In a report published today, the Council of Europe’s anti-money laundering body MONEYVAL commends the UK Crown Dependency of Jersey for taking steps to strengthen its legal and regulatory framework to combat money laundering (ML), financing of terrorism (FT) and financing of proliferation (FP). It also calls on the jurisdiction to further reinforce the practical application of its frameworks for investigations and prosecutions for ML, as well as the enforcement of sanctions related to AML/CFT preventative measures.

The Council of Europe’s anti-money laundering body conducted a comprehensive assessment of the country’s level of compliance with international standards set by the Financial Action Task Force (FATF).

MONEYVAL concludes that, having significantly strengthened its legal framework since the last mutual evaluation, Jersey has most elements of an effective AML/CFT, but still needs to improve the implementation of measures in certain areas.

On the operational side, Jersey has achieved a high level of effectiveness for its understanding of ML/TF risks and implementing adequate AML/CFT policies and strategies to mitigate them. The report commends the authorities for concluding multiple high-quality, comprehensive and detailed risk assessment products informed by a variety of sources. National co-ordination and co-operation between agencies, as well as private sector awareness of risks are also strengths of the system.

The operational independence of Jersey’s Financial Intelligence Unit (FIU) and its resources have significantly improved since the last MONEYVAL assessment. Financial intelligence is regularly used to develop evidence and trace proceeds in ML, TF and predicate offence investigations, although the trend is relatively recent and authorities are encouraged to make increased use of these resources. While ML cases are routinely investigated and proceeds of crime are pursued as a policy objective, the modest number of ML prosecutions, including those for third-party and autonomous ML, call for a more proactive approach by the competent authorities.

However, MONEYVAL recognises the positive results of alternative measures put in place such as civil forfeiture mechanisms, introduction of deferred prosecution agreements and the introduction of a criminal offence of the failure to prevent ML.

Jersey has appropriate mechanisms in place to identify, investigate and prosecute TF. The low number of investigations and the absence of prosecutions and convictions has been assessed as consistent with the jurisdiction’s low TF risk profile. Mechanisms to implement, without delay, targeted financial sanctions (TFS) on terrorism financing and proliferation financing are equally in place. Notwithstanding, the assessment detects room for improvement regarding supervision of TFS requirements and the risk-based oversight of the non-profit sector.

Steps have been undertaken to reinforce the AML/CFT supervisory framework, which concentrates on the higher-risk entities and sectors, in line with supervisors’ good understanding of risks. However, the approach to ensure compliance with AML/CFT obligations greatly relies on remedial actions, with a modest imposition of sanctions, which is not considered to be sufficiently in line with the number and types of breaches detected. Measures aimed at preventing criminals from entering the market are in place for all sectors, but the report calls for a more robust process for conducting criminality checks.

The private sector demonstrated a good level of understanding of the risks and compliance with AML/CFT obligations. However, the report makes clear that the private sector’s implementation of measures on complex structures, assessment of the risks for the application of exemptions, application of enhanced due diligence measures (EDD) to politically exposed persons (PEPs) and the detection and prompt reporting of suspicious transactions would merit further improvements.

MONEYVAL finds that Jersey authorities demonstrated a good understanding of the extent to which legal persons and arrangements can be misused for ML purposes. Jersey ensures the availability of adequate, accurate and up-to-date basic and beneficial ownership (BO) information of legal persons and arrangements through a fully populated Registry and trust and company service providers (TCSPs), as well as conducting comprehensive checks, risk assessments and vetting processes on an ongoing basis.

Jersey authorities demonstrated commendable efficiency in actively seeking and providing mutual legal assistance (MLA) and other forms of international co-operation, particularly in the later years of the assessed period. Similar conclusions were drawn regarding the process of BO information sharing. Nevertheless, authorities are encouraged to seek informal cooperation more frequently and continue to increase their outreach to foreign counterparts via MLAs.

Jersey is expected to report back to MONEYVAL under its regular follow-up reporting process in December 2026.

Financial Services Policy Framework

The Financial Services Policy Framework was published in December 2021.  This includes a comprehensive analysis of the current position of the financial services industry in Jersey. It lists ten strategic priorities –

1. Maintain and develop the four pillars [private wealth, funds, capital markets and banking] of Jersey’s financial services industry.
2. Enable Jersey to be a leading international financial centre for sustainable finance.
3. Harness the opportunities created by fintech and digitalisation.
4. Maintain an attractive and agile operating environment.
5. Maintain strong adherence to international standards.
6. Review and refresh Jersey’s strategy for combatting financial crime.
7. Enhance Jersey’s profile internationally.
8. Grow and deepen Jersey’s footprint in new and existing markets.
9. Deliver strong and effective stakeholder cooperation.
10. Deepen and broaden the skills and expertise of Jersey’s workforce.

Financial Services Competitiveness Programme

On 22 April 2025, the Government announced a Financial Services Competitiveness Programme. The programme has been built around four core workstreams –

• International Tax Strategy– Led by Revenue Jersey, focussed on maintaining Jersey’s strong position through a forward-looking tax policy.
• Business & Regulatory Environment– Led jointly by the Government and the JFSC, aimed at improving the ease of doing business, delivering quick-win reforms as well as medium- and long-term changes to enhance the Island’s appeal to global investors.
• External Growth Strategy– A global market analysis to inform Jersey’s external engagement strategy, identifying future value pools and Jersey’s competitive ​positioning, led by the Government with expert support from Jersey Finance Ltd.
• Future Competitiveness & Regulation– Bringing together insights from all workstreams, this phase will culminate in a report by an independent panel of global experts.

On 16 March 2026, the Government published Time to Win, the final ministerial report and action plan. The summary is set out below –

Jersey’s financial and related professional services sector is the bedrock of the Island’s economy. It is responsible for more than half of Jersey’s economic output, provides 2 in 5 jobs and generates £6 in every £10 of tax revenue – equivalent to funding the entire health and education budgets, and most of social security. The success of this industry has funded public services that would otherwise have been impossible without higher rates of tax.

But Jersey’s FRPS sector is facing multiple and converging threats. Competition between IFCs is intensifying and emerging centres, particularly in Asia and the Middle East, are growing fast. Capital flows and the global distribution of wealth are changing, requiring greater agility in market. Innovation and digitalisation are driving new products and an enhanced focus on customer service and ease of doing business.

Jersey’s core advantages remain real and valuable: legal certainty, political stability, strong courts, and a well-understood tax regime with tax neutrality at its heart. But Jersey is losing momentum because friction, complexity and institutional overlap have eroded advantages that were once converted into growth. Other jurisdictions are catching up on standards while outperforming Jersey on speed, certainty, and service.

Whilst Jersey’s FRPS sector is growing, it is losing ground in relative terms. The evidence across the programme’s four workstreams is clear: this requires a reset of how Jersey operates as a system.

Jersey is not losing momentum because it lacks quality, credibility, or regulatory standards. So, this reset is not about changing our brand – we will maintain our simple, stable, and certain tax regime with tax neutrality at its core, a competitive personal income tax regime, and no capital gains tax, wealth tax or inheritance tax. The reset is about execution discipline, service culture, clarity of responsibility, and a renewed hunger to win.

The prize is significant. Improvements in speed, certainty and client experience will generate significant returns. The cost of inaction is continued erosion of market share.

Four areas will provide early and visible evidence of whether the reset is working:

• • Funds, where recent reforms must translate into sustained growth.
  • Banking, where simplification of the regulatory framework supports growth.
  • Digital, where the pace of innovation and adoption will determine whether Jersey leads or observes.
  • Private wealth and family offices, whose clients’ behaviour will be the most reliable indicator of progress.

This report sets out our strategy for growth: Jersey’s Time to Win.

We will:

• • Protect our simple, stable and certain tax regime with tax neutrality at its core.
  • Reduce costs of doing business for all FRPS firms and their clients.
  • Renew our appetite for growth, optimising promotion in priority markets and providing a welcoming front door for new business.
  • Innovate processes and products, embracing digitalisation and taking a lead on tokenisation.
  • Enhance our infrastructure, investing in connectivity and our IFC.

The report includes a report by an expert panel, led by Sir Howard Davies, former Deputy Governor of the Bank of England and Chair of NatWest.  The introduction to that report said –

Jersey’s financial services industry stands at a crossroads. It remains the bedrock of the island’s prosperity generating 40 percent of tax revenues and 44 percent of gross value added. The success of this industry over many decades has funded public services that would otherwise have been impossible without higher rates of tax.  But the sector faces existential threats such as intense new competition, accelerating innovation and more market-sensitive regulation in other jurisdictions. These demand immediate action. Without urgent intervention, Jersey’s future success as a financial centre is at risk, with inevitable repercussions for the Jersey way of life.

This will require a fundamental change in mindset. Until now, Jersey has operated on the basis that it is a privilege for international customers to do business on the island. No longer. Jersey needs to accept that the privilege has shifted: it now needs to work hard to retain, promote and grow its financial services sector. There are many more options for mobile financial services businesses. This means a change in culture, policy and regulation across Government, its agencies and industry. Within Government this means policies and practices need to be re-focused on growth with buy-in across all departments.

This buy-in is currently inadequate. The challenge facing Jersey’s financial services industry is not fully understood or appreciated, and incentives to change the status quo and to refocus Government to help the sector grow are weak. The Panel’s unequivocal view is that this must change as quickly as possible if decline is to be avoided. Indeed, the Government will need to go further and prioritise investment and to provide the necessary execution and delivery support required to implement reforms to ensure the future sustainability of the industry on the island. report sets out the scale of the challenge and what Jersey should do to rise to it.

The summary of recommendations and priorities is set out below.

Jersey Finance

Jersey Finance is the representative and promotional body for the finance industry in Jersey. It is funded by the Government and the industry. Its website includes detailed papers on the industry.