Moneyval Confirms Guernsey’s Regulatory Strength: A Strategic Advantage for Business

The Bailiwick of Guernsey has reaffirmed its position as a leading international finance centre following the publication of the 2025 MONEYVAL Mutual Evaluation Report. The findings underscore Guernsey’s robust anti-money laundering (AML) and counter-terrorist financing (CFT) framework, reinforcing its appeal as a secure, transparent, and well-regulated jurisdiction for global business.

A Strong Endorsement from MONEYVAL

MONEYVAL, the Council of Europe’s monitoring body for AML/CFT compliance, conducted its fifth-round mutual evaluation of Guernsey in 2024, with the final report published in early 2025. The evaluation assessed both technical compliance with the Financial Action Task Force’s (FATF) 40 Recommendations and the effectiveness of Guernsey’s AML/CFT regime.

Guernsey achieved full pass ratings across all 40 FATF Recommendations—an exceptional result that places it among the top-performing jurisdictions globally. Notably, Guernsey received two “High” effectiveness ratings: one for its implementation of sanctions on terrorist financing and oversight of non-profit organisations (Immediate Outcome 10), and another for its implementation of sanctions related to the proliferation of weapons of mass destruction (Immediate Outcome 11). Only the UK and the US have previously achieved this distinction.

The report states that Guernsey has comprehensive measures to ensure transparency of beneficial ownership of legal persons and arrangements, and that competent authorities actively, regularly and effectively cooperate with foreign counterparts.

Implications for Business

These results send a clear message to multinational financial services businesses, investors, fund managers, family offices, and high net worth individuals: Guernsey offers a safe, stable, and well-regulated environment for business. The evaluation confirms that Guernsey’s financial services sector operates under a regime that prioritises transparency, compliance, and international cooperation—without stifling innovation.

For businesses, this translates into several key advantages:

• Regulatory Confidence: Guernsey’s legal and regulatory frameworks are not only compliant but demonstrably effective, reducing risk for entities operating in or through the jurisdiction.
• Investor Assurance: The high ratings provide reassurance to institutional investors and clients that Guernsey-based structures are subject to rigorous oversight and best practices.
• Global Reputation: Guernsey’s standing as a cooperative and transparent jurisdiction enhances its attractiveness in an increasingly competitive global market.

Industry and Government Collaboration

The success of the evaluation is a testament to the collaborative efforts of Guernsey’s government, regulators, and private sector. The Guernsey Financial Services Commission (GFSC), the Financial Intelligence Unit (FIU), and the Policy & Resources Committee all played pivotal roles in ensuring compliance and promoting awareness across sectors.

The private sector’s understanding and implementation of sanctions obligations were described as “robust,” and the supervision of non-profit organisations was found to be both frequent and detailed. These findings reflect a culture of proactive engagement and shared responsibility across the island’s financial ecosystem.

Areas for Continued Improvement

While the evaluation was overwhelmingly positive, MONEYVAL identified areas for further enhancement:

• Investigation and Prosecution of Money Laundering: Although Guernsey has successfully prosecuted various types of money laundering, the report calls for more proactive and strategic enforcement aligned with the jurisdiction’s risk profile.
• Suspicious Activity Reporting (SARs): Improvements are needed in the volume and quality of SARs submitted by the private sector, as well as in the use of financial intelligence for enforcement purposes.
• Risk Understanding in Specific Sectors: Certain sectors, such as investment services and trusts, require deeper risk assessments to ensure vulnerabilities are adequately addressed.

These findings are not unusual and are viewed as actionable. The GFSC has said that it does not foresee making any fundamental changes to its supervisory approach as a result of the evaluation. Those carrying on business in Guernsey should pay particular attention to these highlighted areas and ensure that they are adequately addressed in their internal policies and procedures.  This is also an area in which SW Offshore specialises in advising clients with its unique blend of private, in-house and regulator practice experience.

Looking Ahead

The 2025 MONEYVAL evaluation is not just a milestone—it’s a springboard. As global standards evolve, Guernsey is well-positioned to remain at the forefront of regulatory excellence. The island’s ability to adapt, collaborate, and lead by example ensures that it will continue to be a preferred jurisdiction for financial services, investment structures, and cross-border business.

In a world where regulatory scrutiny is intensifying, Guernsey offers a rare combination: a high standard of compliance, a culture of business-friendly regulation and innovation, an approachable regulator, and a deep pool of financial expertise. For businesses seeking a secure and reputable base of operations, Guernsey is not just a good choice—it’s a strategic one.