Recent Jersey Money Laundering Prosecutions highlighted in 2022 JERSEYGOV risk documents

The Government of Jersey published [27 September 2022] its most recent National Strategy and action plan, Statement on Activities, Risk Appetite and mitigation in this area which details how the Island will demonstrate this commitment.

The publication reminds readers of a few Recent Prosecutions of Note:-

• AG v Abu Dhabi Commercial Bank PJSC Jersey Branch
  • https://www.jerseylaw.je/judgments/unreported/Pages/%5b2020%5dJRC022.aspx
  • Following the 2019 conviction for the bank failing to comply with the requirements of the Money Laundering Order, the bank was fined £475,000 on 5 February 2020, with £25,000 costs awarded.
• AG v Ian Ellis
  • https://www.jerseylaw.je/judgments/unreported/Pages/%5b2020%5dJRC245.aspx
  • The Solicitor General [SG] resolved a very important point of principle in tax evasion cases in the Crown’s favour,
    • This being, the entire contents of a bank account was vulnerable to forfeiture if it was opened or used as a tool or instrumentally to commit tax evasion,
    • reaffirming the strong public interest in discouraging the use of accounts in Jersey for such activity.
  • AG v LGL Trustees Limited.
    • https://www.jerseylaw.je/judgments/unreported/Pages/%5b2021%5dJRC053.aspx
    • On 19 February 2021, the Royal Court imposed a fine of £550,000 on LGL Trustees Limited (LGL), and awarded costs of £50,000, for failing to comply with the requirements of the Money Laundering Order.
    • LGL had pleaded guilty on 4 December 2020 to two related offences under Article 37(4) of the Proceeds of Crime (Jersey) Law 1999 for breaches of the Money Laundering Order.
    • The SG commented:
      • “Proper compliance by financial service providers with the Money Laundering Order is a key defence against abuse of the Island’s finance industry by criminals and an important aspect of Jersey’s international commitment to combatting money laundering. The decision to prosecute LGL for serious compliance failures and seek a significant fine reflect the gravity with which such breaches of the law are viewed.”
    • AG v Darius Pearce, Jeweller and AG v Thurban, Sait, Brown, Riley, Roy, Wolff, Pearce
      • https://www.jerseylaw.je/judgments/unreported/Pages/%5b2021%5dJRC203.aspx
      • A local jeweller, Mr Darius Pearce, was sentenced to 7½ years for three counts of money laundering on 5 July 2021.
      • He assisted a UK gang by moving cash from Jersey to the UK, where the drugs were purchased.
      • https://www.jerseylaw.je/judgments/unreported/Pages/%5b2020%5dJRC212.aspx
      • The prosecution highlighted the principles from an earlier case (AG v Goodwin) when sentencing, in particular the
      • “interest of Jersey as a finance centre justifies a deterrent element.”

Documents to read below.

• National Strategy for AML,CFT,CPF
• https://lnkd.in/e2D9Dnah
• https://www.gov.je/SiteCollectionDocuments/Crime%20and%20justice/R%20National%20Strategy%20for%20Combatting%20Money%20Laundering.pdf

• Executive Summary - National Strategy for AML,CFT,CPF
• https://lnkd.in/eprfw8hd
• https://www.gov.je/SiteCollectionDocuments/Crime%20and%20justice/R%20Combatting%20Money%20Laundering%20Executive%20Summary.pdf

• Statement - Activities, Risk Appetite and Mitigation
• https://lnkd.in/ex6CM9uA

https://www.gov.je/SiteCollectionDocuments/Crime%20and%20justice/R%20Financial%20Crime%20Risk%20Appetite.pdf

Jersey c LGL Trustees Ltd re Angola pdf