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JFSC Penalizes Jersey Firms £700,000 for Violating AML Regulation

Three jersey based firms have been forced to pay a fine of more than £700,000 for breaching anti-money laundering regulations designed to prevent financial crimes. SG Kleinworth Hambros companies have been found to be violating the compliances from 2018. 

Jersey Financial Service Commission has also criticized them in a public statement. JFSC suggested that a total of £719,00 have been made against three firms belonging to S G Kleinworth Hambros. They have been charged for violating certain protocols which included the lack of monitoring of measures taken to fight the money laundering and terrorism financing. According to JFSC, this has ruined the reputation of Island’s finance sector. Another finance firm, LGL Trustees, also faced a fine of £650,000 for ignoring the background check of clients and their links with illegal practices in Africa.

There were also questions raised about the staff responsible for compliance work, who has failed to respond to the complaints of regulatory breaches. They also failed to notify the regulatory authorities about the breaches and lacked a proper system of documentation of matters related to compliance. 

JFSC Director-General Martin Moloney said, “This is the third time the JFSC has used its powers to fine businesses in Jersey’s financial services industry for breaching regulatory requirements. The three S G Kleinwort Hambros firms acknowledged their failings at an early stage and have taken steps to make material changes to strengthen their governance arrangements and compliance systems and controls.” 

He also said that they do not take these sanctions lightly and intend it to be a compulsion for all the businesses. However, there is no proof that these three firms have been involved in facilitating any financial crimes but still, they are required to ensure that they do not get exploited.