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Both the GFSC and States of Guernsey have reiterated how seriously the island takes the countering of financial crime in the light of damning revelations this week.
The finance industry has faced global scrutiny after it was confirmed that a Guernsey-based financial consultant did off the books work for the alleged war criminal – Rifaat al-Assad.
al-Assad, the uncle of in-hiding, former president of Syria - Bashar al-Assad, had previously been named as 'Client 1' by the GFSC, and used his Guernsey-based, unlicensed advisor to secretly manage his family's vast wealth.
Since his identity was revealed earlier this week, both the States and the GFSC have issued statements - but refused interviews.
Guernsey Financial Services Commission
When approached by the Express for comment, a spokesperson for the GFSC said: “The Guernsey Financial Services Commission takes the countering financial crime seriously as per its statutory objectives. The public statements on the Commission’s website include a considerable number of examples of action being taken against firms which have not complied with the Bailiwick’s robust laws against money laundering.”
You can find the full list of public statements issued by the GFSC HERE.
“In addition to supervising regulated firms and individuals, the Commission actively ‘polices the perimeter’, using a range of tools to ensure those who should be operating within the Bailiwick’s regulatory framework are doing so.”
“As a jurisdiction, Guernsey takes money laundering, proliferation financing and any other unlawful conduct in the financial sphere extremely seriously. The systems we have in place for regulation and law enforcement reflect this stance," said a spokesperson for the States.
“In this specific case, the Guernsey Financial Services Commission – the local regulator - took serious action against this individual, handing down a very large fine and a ban from working in the industry. However, as people working in the law enforcement sector are well aware, the evidential threshold for a criminal prosecution and the threshold for a regulator to take action are very different.
“Guernsey’s Economic & Financial Crime Bureau do not comment on investigations relating to a named individual. However, as a general comment the EFCB investigates all matters diligently and in accordance with the law where there is any suspicion of criminal activity.
“For any money laundering offence under Guernsey law, it is necessary to prove that a relevant person has committed an act in relation to “criminal property” and that that the individual knew or suspected that was the case. As in all criminal matters, for any successful prosecution an alleged offence must be proven to the high criminal standard. Where, following a full investigation, there is insufficient evidence to proceed, a case will be closed. However, it is importantly to highlight that such cases are subject to further review if new information becomes available.
“As part of the Bailiwick of Guernsey’s long-term commitment to this area, we have a National Strategy for combatting financial crime. This is a published document, despite there being no requirement within the FATF standards to publish a national strategy, as we consider it important to articulate our position for the benefit of domestic and international stakeholders. This strategy and the joint efforts of our regulator and law enforcement agencies ensure we are a modern and well-regulated finance jurisdiction. This case is evidence of our strategy's effectiveness, with regulatory and law enforcement authorities working together and ensuring action is taking where it is possible to do so.”
£210k fine for working with alleged war criminal without a licence
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