Crescendo Advisors International Limited, Mr Hamish Jebb Hamilton Few (2022-12-30)

Summary

This is a public enforcement statement issued by the Guernsey Financial Services Commission (GFSC) against Crescendo Advisors International Limited (an investment licensee under the Protection of Investors Law) and its Managing Director and Money Laundering Reporting Officer, Mr Hamish Jebb Hamilton Few. It records the Commission's findings of serious and systemic AML/CFT and corporate governance failings and the sanctions imposed as a result.

• Financial penalties: A £203,000 penalty imposed on the Licensee and a £33,810 penalty imposed on Mr Few under section 39 of the Enforcement Powers Law.
• Prohibition order: Mr Few is prohibited for 3 years and 4 months from holding the position of Controller, Director, Money Laundering Reporting Officer or Money Laundering Compliance Officer.
• Exemption disapplied: The exemption under section 3(1)(g) of the Regulation of Fiduciaries, Administration Business and Company Directors, etc Law 2020 is disapplied in respect of Mr Few for the same 3 year 4 month period.
• Findings: The Licensee failed to conduct adequate initial and ongoing relationship risk assessments, failed to properly identify beneficial owners and PEPs, failed to carry out Enhanced Due Diligence for high-risk clients, failed to monitor transactions and third-party payments, and lacked effective AML/CFT policies, procedures and controls and adequate mind and management in Guernsey.
• Public statement: The Commission published this statement under section 38 of the Enforcement Powers Law as part of the sanction.

The document is retrospective and case-specific: it does not create new rules for the wider industry but illustrates how existing customer due diligence, EDD, monitoring and corporate governance requirements under the Regulations, the Handbook, the COB Rules and the POI Law are enforced, and the level of penalties and prohibitions the Commission may impose for systemic non-compliance.

Key obligations

• The Licensee must pay a financial penalty of £203,000 imposed under section 39 of the Enforcement Powers Law.
• Mr Few must pay a financial penalty of £33,810 imposed under section 39 of the Enforcement Powers Law.
• Mr Few is prohibited from holding the position of Controller, Director, Money Laundering Reporting Officer or Money Laundering Compliance Officer for a period of 3 years and 4 months from 30 December 2022.
• The exemption under section 3(1)(g) of the Regulation of Fiduciaries, Administration Business and Company Directors, etc Law 2020 is disapplied in respect of Mr Few for 3 years and 4 months from 30 December 2022.

Applies to

licensees under the Protection of Investors Law, investment managers/discretionary portfolio managers, Money Laundering Reporting Officers, Money Laundering Compliance Officers, Controllers and Directors of licensed firms

Deadlines

• 30 December 2022: Effective date from which the financial penalties, prohibition order and exemption disapplication take effect.
• 3 years and 4 months from 30 December 2022: Duration of Mr Few's prohibition from holding Controller, Director, MLRO or MLCO positions, and duration of the disapplied exemption.