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'Significant' threat of overseas financial crime in Jersey

02/10/2020

Jersey ML report (NRA) says the biggest risk is from India, Kenya, Russia, UK and the USA.  And the NRA report by the Government of Jersey found no overarching strategy on how to tackle financial crimes such as money-laundering

THE REPORT SAYS

The threat of financial crime in Jersey by overseas criminals is "significant", a government report has found.

The National Risk Assessment of Money Laundering is the first study of its kind and has been made public by the Government of Jersey.

It found there was "no clear expression" on how to investigate or prosecute white-collar crime on the island.

Twenty-two recommendations have been made in response to the findings.

The report states that the greatest risk in Jersey comes from non-residents "seeking to hide the proceeds of corruption".

It said the "beneficiary" of the island's financial structure was linked to jurisdictions "where corruption is endemic".

India, Kenya, Russia, UK and the USA were identified as posing the greatest threat of financial crime.

'No cooperation'

The report states Jersey's Financial Crime Strategy Group had not developed "an overarching policy or strategy on tackling financial crime" and had failed to play "a proactive role" in determining how anti-money laundering resources could be used.

A number of examples outlined in the report did not end in prosecution, despite suspicions from Jersey authorities of criminal activity.

In 2015, payments to prominent public figures in Africa were made through a Jersey bank to solicit sensitive information from government officials, other prominent individuals and a journalist in the continent, the report said.

It found an investigation in Jersey did not commence due to "no cooperation" from overseas jurisdictions.

Data also indicated the island was "likely" to be used to evade foreign taxes based on a "significant number" of tax information requests made by foreign authorities between 2014 and 2018.

Among the government's 22 recommendations are increased training for prosecutors and a review of activities listed under anti-money laundering laws.

External Relations Minister Senator Ian Gorst said an action plan would be implemented in the next year.

https://www.bbc.co.uk/news/world-europe-jersey-54353356