Whistleblowers continue to help the financial regulator

WHISTLEBLOWERS continue to play an important part in helping to detect serious breaches of the rules that govern finance firms in Jersey, says the Island’s financial regulator.

Whistleblowers are important to the JFSC
Whistleblowers are important to the JFSC

WHISTLEBLOWERS continue to play an important part in helping to detect serious breaches of the rules that govern finance firms in Jersey, says the Island’s financial regulator.

And the number of suspicious activity reports (SARs) coming from the finance industry seems to be growing too.

The Joint Financial Crimes Unit, which is made up of States police and Customs and Immigration officers, works to detect, prevent and investigate financial crimes.

Its head, States police inspector Dave Burmingham, said that the number of reports last year was 1,847, which was up 101 on the previous year. However, to the end of October this year, the number of SARs stood at 1,400 and may end up lower than in 2011.

When it comes to whistleblowing, the numbers in Jersey are small, but the head of enforcement at the Jersey Financial Services Commission, Barry Faudemer, says that whistleblowing was an important source of reporting rule breaches.

Full story in Thursday's JEP

Comments for: "Whistleblowers continue to help the financial regulator"

noah

What do we need the JFCU for , I thought Jersey was squeaky clean

Peter

We need them because customers of financial institutions can unexpectedly give us grounds to be suspicious in subsequent transactions that they wish us to act on eg instructions to act maybe received that are outside the paramenters of that customer's usual activity.

Reporting to the JFCU can also be on persons who are not customers and on who suspicions can be raised during the application process to potentailly become a customer. Such action can stop the criminal element getting into Jersey in the first place!

JerseyD

Jersey has the best reputation in the world because we are so diligent, of course crime bosses are going to want their money going through somewhere with a reputation as good as ours. We have to be ever vigenent in ensuring no crafty crooks get through our lines. SARs play a vital part in that role. If something is "squeaky clean" noah, it doesn't stay that way unless you put in the hard graft.

Overpopulated

Well some whistle blower has provided the Daily Telegraph with a list of all HSBC Jersey's JersUK customers the amount involved is £billions

When you have unhappy staff such things will continue to happen

Mario

What about KYC wasn't this supposed to stop bad practice? Those pro-finance bods keep banging on about how KYC is there to stop naughty things happening.

Bob

It is and if we meet a prospective client and get KYC and they are a bad egg or are suggesting an action that is suspicous we would not take them on but would still do a SAR so the JFCU know what is going on and can act. Prevention being better than cure!

C Le Verdic

Well, Bob, somebody must be taking them on board if today's BBC national news is anything to go by.

"It is reported that the 4,000 offshore account holders include a well-known drug dealer living in Central America, bankers who face allegations of fraud and a man once dubbed London's "number two crook".

http://www.bbc.co.uk/news/business-20265125

sporran

Jersey whistleblowers are also an important source of information for HMRC to enable it to chase UK tax evaders who use Jersey bank accounts.

I wonder if HMRC pays them a reward?

Esposito Dave

Some cracking criminal money in Jersey's HSBC accounts if that Daily Telegraph report today is to be believed.

Peter

I think you also have to consider that not all customers are necessarally 'bad' at the time that an account maybe opened.

They can be a clean as a whistle at the outset and then take their time to gain your trust which can take years, before trying to take advantage of your trust and the institution that they are using.

Constant monitoring of a client and their activity is essential to ensure any bad eggs are reported on and investiagted accordingly.

Appropriate staff training is essential. That is a regulatory requirement in itself.