As a Jersey regulated business, VG is required to hold appropriate and up to date Client Due Diligence (“CDD”) documentation, which identifies and verifies who our clients are, throughout the duration of the relationship.

This means that we are required to identify and verify the ultimate beneficial ownership and/or controller(s) behind a company, trust, LLP or fund structure and to ensure a thorough understanding of the proposed relationship with VG.

The following is a summary of the requirements taking account of current AML/CFT regulation and legislation in Jersey. If you are unable to supply any of the documentation please indicate what information you can supply and we will review and confirm if the proposed alternative would be acceptable.

Section 1: Identification

For the purpose of identification, we consider the beneficial owner to be our client.

The beneficial owner is defined as any person who owns or controls, directly or indirectly, equal to or more than 25% of the shares or voting rights of any company administered. The ultimate beneficial owner(s) should be a natural person.

Where the client or entity is considered to be high risk, the beneficial owner is defined as any person owning or controlling, directly or indirectly, equal to or more than 10% of the shares or voting rights of any company administered. Should any connection to Politically Exposed Persons (“PEP”) be identified within the span of control, the threshold equates to equal to or more than 5%. See Section 4 for more information.

We are also required to identify those who may be a “controller”, where that person may own less than the stated thresholds however remain able to exert control through other means.

Section 2: Verification

VG has a requirement to verify the information we receive from a client, together with information that we have obtained during the onboarding process. The most convenient means of verification is to meet a client in person to obtain their photographic identity, address confirmation and any other documentation that may be deemed necessary (subject to the proposed provision of services and individuals connected to the structure). When this is not possible, documents that are certified by a suitable certifier may be acceptable. See Section 5 for more information.

Natural person

Proof of identity

A copy of an original passport in person, or the provision of a suitably certified copy, which includes the following information is required:

  • Full legal name
  • Date of birth
  • Place of birth
  • Signature

Where a passport is not available, a national identity card or other government-issued document that contains a photograph may be sufficient if it discloses:

  • Nationality
  • Date of birth
  • Place of birth
  • Country of issue
  • Date of issue
  • Document identification number
  • Signature

Please note that the copy of the photograph must be certified in accordance with Section 5 below.

Proof of address

We will also require a copy of ONE of the following original documents showing the permanent residential address of each individual:

  • A valid, full driver'&s licence which bears an address (which cannot be the same document if used for the verification of identity)
  • A current, valid National ID card which bears an address (which cannot be the same document if used for the verification of identity)
  • Government, bank, building society or utility bill e.g. relating to electricity, water or telephone (but excluding a mobile telephone bill or credit card statement)
  • TV licence renewal
  • Council tax or rates bill
  • Tax revenue notification
  • A personal visit to the individual’s address by a VG employee which individual must document such a visit
  • A certified extract from a telephone directory
  • A letter of headed paper from a reputable and reliable professional source confirming they have visited the identification subject at their property within six months of the date of their letter

Please note that non-bank cards such as store cards, mobile telephone statements or addresses that feature only a PO Box number or “care of” are not acceptable as confirmation of a residential address. Where a natural person is identified as a Politically Exposed Person (PEP), we will undertake more enhanced due diligence (“EDD”). Details concerning PEP individuals can be found in Section 4.

Corporate bodies

Where the structure involves a private or listed company, we will look to receive certified copies of documents that verify the following non-exhaustive list, unless such documents are available to us on a public registry:

  • Full name of company
  • Registered and trading addresses
  • Certificate of Incorporation
  • Memorandum and Articles of Association
  • Names, addresses and date of birth of directors and main shareholders (see Natural person section for for due diligence requirements)
  • % of shares held by each Shareholder
  • Annual accounts / Annual return
  • Details of trading or current operations
  • Tax/FATCA registration details (as applicable)

Trusts

The below guidance sets out the standards required for the CDD information to be obtained and verified for a trust:

  • Name of the Trust
  • Date of establishment
  • Official identification number, if any (such as tax reference number or registered charity number)
  • Identification information of trustee(s) relevant to their legal form, eg. individuals, companies, trusts or limited partnerships
  • Mailing address of trustee(s)
  • Identification information of settlor(s)
  • Identification information of protector(s)
  • Identification information of all beneficiaries (discretionary or vested)
  • An assurance from the trustee(s) that, where they have directly provided information which is not publicly available, they will undertake to provide a relevant update in the event of a subsequent change.

Foundations

Where the structure is controlled by a Foundation we will require identification verification which will include but is not limited to the following:

  • Name of foundation;
  • Date and country of incorporation;
  • Official identification number;
  • Registered address; Mailing address (if different); Principal place of business/operations (if different);
  • Names of all council members
  • Charter (or equivalent)
  • Latest audited financial statements.
  • The founder, a person (other than the founder of the foundation) who has endowed the foundation (directly or indirectly), and, if any rights a founder of the foundation had in respect of the foundation and its assets have been assigned to some other person, that person,
  • The guardian
  • Any beneficiary entitled to a benefit under the foundation in accordance with the charter or the regulations of the foundation; or other beneficiary and person in whose favour the council may exercise discretion under the foundation in accordance with its charter or regulations and that have been identified as presenting higher risk;
  • Any person exercising ultimate effective control over the foundation.

Partnerships

Where the structure is controlled by a Partnership we will require identification verification which will include but is not limited to the following:

  • Partnership agreements
  • Date of establishment
  • Details of General Partner
  • Full details on the beneficial ownership of the originator
  • Tax details and arrangements

Section 3: Source of wealth and source of funds

These are important areas of understanding for VG with all new and existing clients.

Source of wealth

We are required to understand the background as to our clients’ source of wealth and to independently verify this information by reference to third party information. “Source of wealth” is distinct from the source of funds, and describes the activities which have generated the wealth of the client outside the funds introduced to the structure. Whilst enquiries to ascertain the source of wealth may deliver information regarding the total net worth of a client, it is not necessary that this be quantified.

Source of funds

We are required to understand the source of funds that will be used to fund the proposed structure Source of funds is the activity which generates the funds for a client, e.g. a client’s occupation or business activities, in the context of funds that will be, or that have been, introduced into the structure administered by VG. It is not the remitting bank of monies received by the client entity.

Please note that VG may require independent verification of the above information.

Section 4: Politically exposed person (PEP)

Where a PEP or connection to a PEP is identified, VG is required to apply enhanced due diligence measures, details of which will be provided with consideration being made to the personal circumstance(s) of each identified PEP connection.

Jersey Law defines a PEP as an individual who is or has been entrusted with a prominent public function or has influence in a country or territory (including Jersey) or within an international organization. Current Jersey legislation does not state a time limit as to when someone is or has been a PEP, meaning once identified, they will always be considered a PEP.

VG considers the following non-exhaustive list as PEPs:

  • Heads of state, heads of government, senior politicians;
  • Senior government, judicial or military officials;
  • Senior executives of state owned corporations
  • Important political party officials

The following are considered as PEPs by association:

  • Spouse
  • Partner, that is someone considered by his or her national law as equivalent or broadly equivalent to a spouse
  • Children and their spouses or partners
  • Parents
  • Grandparents
  • Grandchildren
  • Siblings
  • Close associates of a person mentioned above including any person who is known to maintain a close business relationship with such a person, including a person who is in a position to conduct substantial financial transactions on his or her behalf.

Section 5: Suitable certifiers and certification requirements

The following are considered to be suitable certifiers:

  • A representative of an Embassy, Consulate or High Commission of the country of issue of the documentary evidence
  • A member of the Judiciary
  • A senior Civil Servant
  • A serving Police or Customs Officer
  • A Lawyer or Notary Public who is a member of a recognised professional body
  • An Actuary who is a member of a recognised professional body
  • An Accountant who is a member of a recognised professional body
  • A Tax Advisor who is a member of a recognised professional body
  • A Director, Officer or Manager of a regulated financial services business operating in an equivalent jurisdiction to Jersey
  • A member of the Institute of Chartered Secretaries & Administrators
  • A member of the Society of Trust & Estate Practitioners

Certification requirements

Where original documents are not available, copies of documentation are acceptable, provided they are certified in line with the following certification wording:

For identification documentation

"I certify that this is a true copy of the original document that I have seen, and bears a true likeness of the individual who I have met"

Other documentation

"I certify that this document is a true copy of the original document that I have seen"

Each certified copy must contain the following information:

  • Full printed name of the person performing the certification
  • The signature of the person performing the certification
  • The date the document was certified
  • The position or capacity of the certifier
  • The contact details of the certifier
  • Any relevant membership number where a member of a professional body

If a copy of a document is more than one page, the certifier must either:

  • Certify each individual page; or
  • Certify the first page and add a statement as to the total number of pages of the original document seen.