Appeals by the first companies to be convicted under new anti-money laundering laws and one of their former directors have been rejected by the court.
They had argued a systemic failure – a lack of proper checking systems – was needed to get a conviction, but the Court of Appeal ruled that their convictions handed down in November should stand.
The verdict has been welcomed by Jersey Financial Services Commission director general David Carse who says that it reiterates the importance of maintaining effective anti-money laundering procedures.
Caversham Fiduciary Services Ltd and Caversham Trustees Ltd were fined a total of £65,000 three months ago, and former director Nicholas Bell was fined £35,000.
They had admitted two counts of failing to comply with the requirements of the Money Laundering (Jersey) Order 1999 contrary to the provisions of the Proceeds of Crime (Jersey) Law between 3 December 2002 and 9 March 2004.
They failed to check the identities of individuals behind £850,000 paid into a Jersey trust, and on whose behalf £825,000 was paid out four working days later.
Bell, a chartered accountant of 20 years standing, also appealed against sentence with his lawyer, Advocate Stephen Baker, telling the court that his client was ‘effectively bankrupt’, but was unsuccessful.
While he welcomed the verdict – a full judgment will be issued next week – Mr Carse said that firms should not be worried about the laws being applied in a draconian way.
‘I do not think people should be afraid that every single breach is going to result in a criminal prosecution,’ he said.
‘In the end, we still have to look at the circumstances of the breach, but the judgment does reinforce the fact that these are controls that have to be applied on an ongoing basis and you cannot pick and choose when you are going to comply.’
