Jersey Financial Services Commission Urges Due Diligence Over 'Public Figure' Account Holders

Mandy Robinson, Tax-news.com, London

29 January 2001

Recent media reports of public figures attempting to conceal their assets in offshore accounts have led the Jersey Financial Services Commission (FSC) to urge financial institutions operating in the Island to be diligent when dealing with such high profile account holders. 'Naturally,' stated the FSC's Enforcement Update Newsletter, 'many of those instances reported have not concerned Jersey. But Jersey has not been immune.'

The FSC is referring to the recent revelations that the late General Abacha, former president of Nigeria, had dealings with some financial institutions in Jersey and this has prompted the FSC to warn that it has launched a 'number of cases under its regulatory laws and may launch further investigations in future.'

The commission is eager to maintain Jersey's international image as a reputable offshore finance centre and says that reports concerning General Abacha's interest in the island could damage its reputation: 'the use of the island's facilities by public figures carries a very real reputational risk to the Island and to any institution concerned. Some (although, of course, by no means all) such public figures may be seeking to use the island to conceal assets that have been acquired as a result of an abuse of the public position of the individual or individuals concerned.'

In light of this 'reputational risk', the FSC says that it strongly advises all regulated institutions in Jersey to review all accounts held by public figures and if found to reveal doubts about the legitimacy of the funds the institution will be required to report any suspicious transactions to the Joint Financial Crimes Unit.

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