Press Release - 3 November 2004
Standard Chartered (Jersey) Limited (the 'Bank')
In March 2003, the Jersey Financial Services Commission directed the Bank to provide it with a report by a firm of accountants into aspects of the Bank’s systems and controls. The direction was issued in accordance with the Commission’s powers under Article 25 of the Banking Business (Jersey) Law 1991 and arose from the Commission’s need to obtain more detailed information about the quality of the Bank’s systems and controls. Usually, such a report will result in recommendations to improve internal processes.
The review concentrated upon the adequacy of the anti-money laundering procedures at the Bank, specifically those relating to account opening, know your customer, account operation and management procedures, as well as the implementation of other Standard Chartered Group procedures.
The report prepared by the reporting accountant, dated 28 July 2003, covered a sample of accounts opened before and after July 1999, when the Proceeds of Crime (Jersey) Law 1999 came into effect. It identified a number of weaknesses in the Bank's anti-money laundering policies and procedures, which resulted in a plan for improvements.
3. Subsequent action taken
The Bank recognised that its anti-money laundering procedures required material improvement and early target dates for this were agreed. A second report by the same firm of accountants was subsequently commissioned by the Bank to confirm progress in key areas and to provide updated findings in relation to the first report. The second report has been presented to the Bank and the Commission and this confirms that much progress has been made in implementing the action plan.
4. Other authorities
The Commission has maintained close liaison with other relevant authorities.
The Commission is satisfied that the Bank has taken, or will be taking, action to correct the issues outlined in the report. It is also satisfied that the senior management of the Bank and its parent have a strong commitment to implementing this action. There will be further continued liaison between the Bank and the Commission to confirm full implementation of the necessary measures.
For further information please contact:
Tel: + 44 (0) 1534 822011