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Failing to report suspicions - a sad but cautionary story as a financial service professional losses their livelihood

20/03/2022

A Jersey financial services business summarily dismissed an employee for gross misconduct for failing to escalate his suspicions of tax evasion (and/or having reasonable grounds to suspect money laundering).

His claim for unfair dismissal has just been rejected by the Jersey tribunal in a public decision (link below), describing it as a "sad but cautionary story".

In this case, a professional has lost his livelihood at the latter end of his career as a result of falling short of the scrupulous attention to the processes of protection against money laundering that employers, the law and the well-being of the Island demands of all those in positions such as his.

It is a sad but cautionary story but a good reminder to avoid getting "caught in a trap" and report!
 
read the judgement - https://www.jerseylaw.je/judgments/tribunal/Pages/[2021]TRE107.aspx

Tribunal key facts
  • This is a claim for unfair dismissal brought by the Claimant (Mr. Dowling) against Concentric Analytics Ltd (“the Company”).
  • The Company employed Mr. Dowling as an investment adviser.
  • The Company was the employing entity, but in practice Mr. Dowling was providing services on behalf of, and representing, Concentric Financial Services Limited ("CFSL") and references in this judgment to the Company effectively incorporate reference to CFSL alongside the Company.
  • CFSL provides financial services to the public and is regulated by the JFSC.
  • Dowling has decades of senior experience within the financial services industry.

Tribunal conclusion
  • In this case, a professional has lost his livelihood at the latter end of his career as a result of falling short of the scrupulous attention to the processes of protection against money laundering which employers, the law and the well-being of the Island demands of all those in positions such as his.
  • It is a sad but cautionary story.
  • That being so, I have considered it useful to set out matters in more detail than might usually be desirable.
JERSEY TAX