Jersey Finance says current systems are strong – as “Panama Papers” link Jersey to 1983 Brinks Mat raid

Tuesday 05 April 2016

Jersey’s anti-money laundering regulation is among the very tightest in the world, says the head of Jersey Finance – as further “Panama Papers” revelations have shown that the Island was used to launder the proceeds of the 1983 Brinks Mat gold bullion robbery.

The offshore financial services industry has been in the spotlight since the “Panama Papers” – a huge trove of leaked documents from global law and trust firm Mossack Fonseca – hit the international press.

The first revelations covered money laundering linked to Russian President Vladimir Putin, as well as Icelandic Prime Minister Sigmundur Gunnlaughsson and senior members of the Chinese politburo, along with 23 individuals who have had sanctions imposed on them for their links to the ruling regimes in North Korea, Zimbabwe and Syria.

Geoff Cook, the head of marketing body Jersey Finance, says that while the coverage of the story has lumped offshore jurisdictions together, the reality was that Jersey’s regulation had been independently praised by the OECD and the IMF.

He said: “The critical issue is whether those clients that have gone into those companies are verifiable and whether their sources of funds are verifiable and whether we have got confidence that they are not involved in illicit activity and whether we believe our systems are strong enough that we can say that is the case.

“The speed that news travels at now and the nature of digital reporting and social media is that sound bits get reported and if repeated often enough, they can give people a completely misleading impression. Our approach has been to respond and be open to the media.”

In a summary of the “Panama Papers” put together by the International Consortium of Investigative Journalists, it was revealed that the Island features in the list of the top ten banks requesting offshore companies for clients - Credit Suisse Channel Islands Limited (918 companies registered with Mossack Fonseca) and Coutts and Co Trustees (Jersey) Limited (487 companies registered) are third and seventh in the list respectively. Rothschild Trust Guernsey Limited (378 companies registered) is in the tenth spot.

Mossack Fonseca is a Panamanian firm with offices in Switzerland, Cyprus and the British Virgin Islands – as well as the fourth floor of Osprey House in Old Street, across the road from the States building at Cyril Le Marquand House.

Today’s international coverage has focused on UK Prime Minister David Cameron’s father’s use of a Bahamas investment fund to avoid paying UK tax, and there has also been coverage about how Jersey was used to launder the proceeds of the Brinks Mat raid in 1983.

Although Jersey’s role in that story was first reported years ago, the Guardian has reported new details.

They have reported that inquiries were made by Centre Services, an offshore firm in Jersey, about potential names for Panamanian companies, 12 months after the raid took place.

Mr Cook said: “These are incidents 30/40 years ago. I am not familiar with the detail but as I understand it, the Jersey authorities were involved in the prosecution of the wrong-doers and were involved in aiding the UK in those prosecutions.

“Since the 1990s Jersey has enacted legislation and put in place very strong legal requirements to vet clients and to vet the sources of funds and to continue to monitor them during the lifetime of their administration here. I would be very confident about the systems over the last 20 years – if you go back 40 years I don’t think that any jurisdiction could say that they were without weaknesses.” 

Note: Black Horse, part of Lloyds Banking Group, have asked us to make clear that although they occupy part of the same building in Old Street, they are not associated with Mossack Fonseca.