Standard Bank Jersey Limited (2000-07-13)

Summary

This is a public statement issued by the Jersey Financial Services Commission (JFSC) following its investigation into a banking relationship maintained by Standard Bank Jersey Limited with Hanover Bank Limited (Antigua) in 1998, which was linked to persons subject to criminal proceedings and investigation in the USA.

• Findings: The Commission concluded that senior officers of Standard Bank Jersey Limited failed to follow proper know your customer and verification procedures in relation to the Hanover Bank Limited relationship, falling short of the standards expected of licensed banks.
• Remedial steps taken: Two independent reporting accountants reviewed the Bank's historic and current procedures; the Bank has since reviewed and improved its procedures and made senior management changes, including the departure of the officers involved.
• Regulatory expectation reiterated: The Commission reaffirmed that institutions licensed under the Banking Business (Jersey) Law must maintain strict and effective know your customer rules to properly verify customer identity and expected business activity.

The statement is historical and informational, recording the outcome of a completed investigation and confirming the Commission's satisfaction with remedial action already taken; it does not impose new ongoing requirements beyond restating existing know your customer expectations for licensed banks.

Applies to

banks licensed under the Banking Business (Jersey) Law