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  1. ITV Report

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

Two of the bank's customers made withdrawals totaling $1.2 million over five years, without the bank knowing what it would be used for. Credit: ITV Channel TV

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.

I welcome the sentence handed down by the Court which shows that Jersey, in its position as a global finance centre, is committed to combatting financial crime and ensuring that financial service providers are held to account when offences of this kind are committed.

The sentencing today represents the culmination of a long-running investigation into the activity of Abu Dhabi Commercial Bank PJSC Jersey Branch by the Law Officers’ Department’s Economic Crime and Confiscation Unit.

– Mark Temple QC, Jersey’s Solicitor General and Attorney General Designate

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