Jersey's Royal Court fines Middle Eastern bank £475,000

A Middle-Eastern bank has been fined £475,000 by Jersey's Royal Court for failing to abide by money-laundering laws.

The Abu Dhabi Commercial Bank Jersey Branch (ADCBJ) pleaded guilty to failing to have appropriate or consistent policies and procedures in place relating to risk management and transaction monitoring.

The Court said the ADCBJ had not made inquiries into the behaviour of two customers who, between 2013 and 2018, made $1.2 million worth of over-the-counter cash withdrawals in the United Arab Emirates - without the bank knowing it was going on.

It argued that, while there is no allegation that either customer engaged in criminal activity, the transactions presented a clear risk of money laundering or terrorism financing.

The conviction is the first since 2005 where a corporate offender has been sentenced for not complying with money laundering legislation.