Abu Dhabi Commercial Bank PJSC appeared in the Royal Court on Friday after pleading guilty to the offence of ‘intermeddling’.
Crown Advocate Julian Gollop, prosecuting, explained how on 1 June 2017 the account holder, Mr Varghese Abraham, had died. He held a number of accounts with ADCB – including a savings account in Jersey.
Following his death, ADCB attached a ‘no debit’ instruction on all of
his accounts, as per procedure.
But a court in the United Arab Emirates ordered that all money held in his name with the bank was to be transferred to the court’s treasury so that his wealth could be dealt with in accordance to UAE probate law.
Later, on 16 October, an employee of the bank, based in the UAE, emailed two employees in Jersey to inform them that preparations were being made to transfer money from all of his accounts to the UAE court treasury, the court heard.
A total of $401,103 was transferred from the Jersey-based account the following day to one of Mr Abraham’s UAE-based accounts.
Advocate Gollop added that in November, while conducting routine checks, a senior officer at ADCB realised the account had been emptied. Two weeks later, the bank notified the Jersey Financial Services Commission about the error.
Mr Gollop recommended a fine of £125,000 and also asked that compensation be paid.
He highlighted the size of the institution, the affect on the reputation of Jersey as a finance centre and the extent of the lapses which led to the crime taking place.
However, the counsel for the defence said that steps had now been taken to prevent the same situation from occurring again, including compulsory training and a weekly seminar between Jersey and UAE-based ADCB staff and planned. Changes to ADCB’s computer systems to have also been planned.
He also said that the bank had been co-operative with the JFSC and that it was highly unlikely any prosecution would have taken place unless ADCB had notified the Jersey authorities.
The Bailiff, Sir William Bailhache, presiding, said the court accepted that the bank had not had any malicious intentions when they made the error.
‘The court finds it clear that this was a mistake and has taken account all mitigation and the purposes of the legislation,’ he said.
He added that if it has been a case involving fraud the consequences would be very different.
A fine of £25,000 was imposed and the bank was ordered to pay £2,085.27 in compensation.
Jurats Jane Ronge and Pamela Pitman were sitting.
