Standard Chartered Trust (Guernsey) Limited fined £140,000 – is this linked to Singapore’s 2015 $4.9 million fines?
On 4th June 2020, the Commission imposed, on an agreed basis, a discretionary financial penalty (under section 11D of The Financial Services Commission (Bailiwick of Guernsey) Law, 1987) on Standard Chartered Trust (Guernsey) Limited of £140,000. The fine is attributable to historical failures to meet the Minimum Criteria for Licensing in respect of Schedule 1 of The Regulation of Fiduciaries, Administration Businesses and Company Directors, etc. (Bailiwick of Guernsey) Law, 2000.
One now questions whether the GFSC fine on the 4th June 2020 linked to Singapore’s central bank March 2018 $4.9 million penalties for breaching money laundering rules and terrorism financing safeguards on
- Standard Chartered Bank = S$5.2 million ($3.95 million)
- Standard Chartered Trust (Singapore) = S$1.2 million
The breaches occurred when trust accounts of SCBS’ customers were transferred from Standard Chartered Trust (Guernsey) to SCTS from December 2015 to January 2016.
The MAS and Guernsey’s Financial Services Commission had been looking into Standard Chartered’s movement of some assets, mainly of Indonesian clients in late 2015, just before the Channel Island adopted new global rules on exchanging tax information.
At the heart of the case was an enormous gap between the stated earnings of some clients and the balances in their accounts. In some extreme cases, clients had claimed an annual income of tens of thousands of dollars yet held tens of millions in their accounts. Also, many clients had links to the military were considered “PEPs” and as such should have been subject to a higher level of scrutiny