13 July 2000 – Public Statement – Statement of the Jersey Financial Services Commission Regarding Standard Bank Jersey Limited

The Jersey Financial Services Commission (‘the Commission’) has completed a full investigation into the circumstances surrounding a banking relationship maintained by Standard Bank Jersey Limited (‘the Bank’) and Hanover Bank Limited (incorporated in Antigua) in 1998. A person closely associated with the operation of Hanover Bank Limited, but with no known connection with the Bank or with Jersey, is already the subject of criminal proceedings in the USA, and others are the subject of continuing criminal investigation in the USA.

The Commission expects the highest possible standards of banking practice to be exercised by those institutions licensed under the Banking Business (Jersey) Law. This includes having in place and exercising strict and effective ‘know your customer’ rules that ensure proper verification of the bona fides of their customers and of the kind of business they expect to undertake. From the results of the investigation the Commission has concluded that, in the Bank’s relationship with Hanover Bank Limited, the senior officers directly involved failed to follow proper procedures. The conduct of the Bank fell well short of the standards expected by the Commission. The Commission approved the appointment of two firms of independent reporting accountants who have examined the Bank’s historic and current procedures. The Commission is now satisfied that the Bank’s relevant procedures which were in place in 1998 have since been reviewed and improved. The Commission is also satisfied that senior management changes in place, including the departure of the officers concerned, have strengthened the management of the Bank.

http://www.jerseyfsc.org/the_commission/general_information/press_releases/release51.asp