Jersey Financial Services Commission Suspicious Transaction Reporting JOINT FINANCIAL CRIMES UNIT
INTRODUCTION JFCU roles/responsibilities STR stats and trends STR pro-forma Common mistakes JFCU response to STRs Consent the legal position Management of client issues
INTRODUCTION Tipping Off issues Cash Handling Tax fraud Service of orders UK POCA provisions Likely impact here
Jeffrey Robinson The Laundryman After Foreign Exchange and the oil industry, the laundering of dirty money is the world s third largest business Companion only to Brutality Deceit Terrorism Murder Drug trafficking BANK PROFITS...
JFCU Roles and Responsibilities States of Jersey Police 6 policing promises 2002-2003 Maintain and enhance the Island s reputation as a financial centre of integrity
JFCU Functions STR/SAR receipt Research Dissemination Intelligence checks Overseas requests Database maintenance Financial analysis Investigations Evidence gathering Serious fraud Money Laundering Terrorist financing UN/EU Sanctions Asset tracing Restraints/Forfeiture
National Criminal Intelligence Service (NCIS) - UK - STRs 50000 45000 40000 35000 30000 25000 20000 15000 10000 5000 0 STRs 1987 1989 1991 1993 1995 1997 1999 2001
STR/SAR ANALYSIS Reporting rate has gone up 25 pcm pre 99 75 pcm 01 100 pcm + 02 2002 projection 1800 1600 1400 1200 1000 800 600 400 200 0 1998 1999 2000 2001 2002 STR
Crown Dependency STR comparison 2000 1800 1600 1400 1200 1000 800 600 400 200 0 Jersey Guernsey Isle of Man 2000 2001 2002
Jurisdiction in which STR subject resides (%) 45 40 35 30 25 20 15 10 5 0 Local UK EU Other Isle of Man Guernsey Jersey Average
Residency of subject? No serious/organised organised crime in Jersey Generating high value transactions Crime has happened elsewhere Criminal resides elsewhere Suspicious assets transiting through Jersey or being parked here
Disclosure Type : Date: Proceeds of Crime Drug Trafficking Terrorism To: Joint Financial Crimes Unit. Fax: 870537 JFCU Reference number:- From : - Disclosing Institution LEGAL Name of institution : Address : Sort code : Contact name : Direct Telephone No: Fax: Reference number : Subject(s) of disclosure Full name : Date & place of birth : Full address : Telephone No : (Work) (Home) (Mobile) (Fax) Occupation : Identification details : (passport etc.) Company name : Full address : Telephone No : Beneficial owner(s) :
Other associated persons or companies, full details (please add sheet if necessary):- Details of introducer/intermediary:- Account number : Date opened : Assets held: REASONS FOR SUSPICION Please describe any activity that prompted the report, giving reason for your suspicion and any steps that have already been taken. Please add continuation sheets as necessary. When submitting this report, please append any additional material that you may consider suitable and which may be of assistance to the JFCU, i.e. bank statements, correspondence, vouchers, transfers, account opening and identification documents, etc.
Word document Available as blank pro forma by e-mail: from d.minty minty@police. @police.gov.je or s.monins monins@police. @police.gov.je or i.clarkson clarkson@police. @police.gov.je
Common mistakes Legal name of entity Service of Production Orders Asset value Details of suspicions Supporting documentation General lack of detail and information
JFCU response Tailored - case by case assessment 3 generic responses 1. Note declined business or terminated relationship - no retrospective comfort! Consent to maintain relationship + 2. No consent to future transactions or 3. Future transactions at your own risk
JFCU response letter: However, this consent does not release you from your obligation in respect of all future transactions on the account or arising from the relationship to comply with the relevant anti-money laundering legislation and to have due regard to the JFSC Guidance Notes on the subject.
Rationale/explanation We will not have the knowledge of the client you do We will not give our blessing to continued suspicious transactions!! We may have knowledge or intelligence to support the notion that the subject is engaged in criminality, or that there are tainted proceeds involved