Louvre Trust (Guernsey) Limited, Derek Paul Baudains, Jonathan Ross Bachelet, Haidee Louise Stephens, Julian Dai Lane, Charles Peter Gervais Tracy (2019-06-18)

Summary

This is a public statement by the Guernsey Financial Services Commission (GFSC) announcing enforcement action against Louvre Trust (Guernsey) Limited and five of its current and former directors for serious and sustained anti-money laundering and counter-terrorist financing (AML/CFT) failings identified during a 2016 onsite visit and subsequent investigation.

• Financial penalties imposed: £70,000 on the Licensee; £8,400 each on Mr Baudains and Ms Stephens; £7,000 on Mr Lane; £5,600 each on Mr Bachelet and Mr Tracy, all under section 11D of the Financial Services Commission Law, with a 30% early-settlement discount already applied.
• Public statement: Made under section 11C of the Financial Services Commission Law, naming the Licensee and each Director.
• Underlying failings: Inadequate client risk assessment and periodic review, insufficient due diligence and enhanced due diligence, poor ongoing monitoring of business relationships, failure to comply fully with Instruction 6 of 2009, inadequate record-keeping, absence of an effective Compliance Monitoring Programme until 2014, unintentionally misleading the Commission, and failure to meet minimum licensing criteria under the Fiduciaries Law.

The Commission notes mitigating factors including full cooperation, an agreed early settlement, a subsequent Risk Mitigation Programme, a full customer due diligence remediation exercise, and strengthening of the Licensee's risk and compliance function since the investigation began.

Key obligations

• Louvre Trust (Guernsey) Limited must pay the imposed financial penalty of £70,000 under section 11D of the Financial Services Commission Law.
• Mr Baudains must pay a financial penalty of £8,400.
• Ms Stephens must pay a financial penalty of £8,400.
• Mr Lane must pay a financial penalty of £7,000.
• Mr Bachelet must pay a financial penalty of £5,600.
• Mr Tracy must pay a financial penalty of £5,600.

Applies to

Licensee (fiduciary/trust company), Directors of licensed fiduciaries, Corporate Service Providers, DNFBPs