Hansard Limited, Andrew Neil Parr, Alan Peter Northmore, Philip Clive Blows, David Samuel Lloyd, Lynn Giovinazzi (2021-12-22)

Summary

This is a public statement issued by the Guernsey Financial Services Commission (GFSC) on 22 December 2021, announcing financial penalties and findings against Hansard Limited, a licensed fiduciary business, and five of its current or former directors and officers (Andrew Parr, Alan Northmore, Philip Blows, David Lloyd and Lynn Giovinazzi). It documents the outcome of an enforcement investigation into serious and sustained failures to manage financial crime risk in a high-risk client book, rather than creating new forward-looking rules.

Penalties imposed

• Hansard Limited: £140,000 financial penalty under section 39 of the Enforcement Powers Law.
• Andrew Parr: £56,700 financial penalty.
• Alan Northmore: £56,700 financial penalty.
• Philip Blows: £56,700 financial penalty.
• David Lloyd: £44,100 financial penalty.
• Lynn Giovinazzi: £44,100 financial penalty.

Findings against the Licensee

• Risk assessments: Failed to properly conduct and document business relationship risk assessments before establishing relationships, including failing to identify a client as a Politically Exposed Person for two years.
• Enhanced due diligence: Failed to carry out sufficient EDD, including establishing source of wealth and source of funds, for high-risk clients.
• Ongoing monitoring: Failed to effectively monitor existing high-risk relationships; monitoring meetings omitted material transactions such as a £9.5 million distribution and an early asset redemption.
• Exit decisions: Failed to adequately document decisions to exit clients suspected of involvement in illegal activity, despite a written policy requiring termination in such cases.
• Compliance review: Failed to maintain an effective, board-owned compliance monitoring programme including sample testing, as required by the Regulations and the Handbook.

The individuals were found to have failed to demonstrate competence, soundness of judgement and diligence in their respective roles as directors, Managing Director, MLRO and Compliance Officer. Mitigating factors included the Licensee's cooperation, early settlement, completion of a risk mitigation plan, appointment of an independent non-executive director, and establishment of an independent audit function to review AML/CFT procedures annually. The statement is a record of a concluded enforcement action and does not itself impose new ongoing compliance requirements beyond those already existing under the Regulations and the Handbook.

Applies to

fiduciary licensees, trust and company service providers, directors of licensed fiduciary businesses, Money Laundering Reporting Officers, Compliance Officers