JERSEY needs to bring in more anti-money-laundering experts to speed up asset freezes and prevent Russian oligarchs evading sanctions, a leading anti-Putin campaigner has said.
Author and businessman Bill Browder’s comments come after the Royal Court this week froze $7 billion of assets ‘suspected’ to be connected to former Chelsea FC owner Roman Abramovich, who was sanctioned on 10 March.
The police raided premises believed to be connected to the Russian’s business activities this week.
Jersey-based finance firm ZEDRA Trust, which has been the subject of recent speculation over its ties to Mr Abramovich, has confirmed to the JEP that its offices were not searched and the company ‘stands with Ukraine’.
On Twitter Mr Browder, who was once Russia’s largest foreign investor, said that the Jersey seizure showed that offshore centres were a ‘treasure trove for Russian sanctions’
Speaking exclusively to the JEP, he said that he was concerned that it had taken the Island almost five weeks to freeze the assets, despite the fact sanctions should have been applied immediately.
‘These sorts of seizures are a very complicated process. The Government of Jersey should therefore be bringing in additional anti-money-laundering as soon as possible,’ he said.
‘It is clear that the amount of work that needs to be done in a short time is beyond their capacity.
‘We have already seen that oligarchs are shifting yachts and planes to jurisdictions which have not applied sanctions to Russia. Therefore it is reasonable to assume that they are doing the same thing with financial assets too.’
He added that he believed the volume of assets frozen in Jersey demonstrated offshore centres were a preferred location for oligarchs to store their wealth.
‘We have seen all these planes and yachts being seized but this is 20 times bigger than anything else that has gone before,’ he said. ‘This demonstrates that the really big money that these people are keeping is offshore.’
Mr Browder said that it was his belief that the Russian oligarchs held large amounts of wealth on behalf of President Vladimir Putin.
Under Jersey law financial institutions are required to freeze assets and report to the External Relations Minister as soon as sanctions are applied.
The Jersey Financial Services Commission was contacted for comment on why it had taken more than a month for Mr Abramovich’s assets to be frozen but had not replied at the time of writing.
ZEDRA Trust, which the JEP revealed last month had provided £1.5 billion to Chelsea FC’s holding company, issued a statement outlining its position in relation to Mr Abramovich being sanctioned.
It says: ‘ZEDRA’s Jersey premises or any of its staff have not been searched by the States of Jersey police.
‘As a prudent and fully regulated service provider, we comply with strict confidentiality obligations and are therefore not permitted to provide any information to any third parties about any individual or company to whom we may currently or previously have provided services for without their explicit consent. Respecting this obligation is of fundamental importance to us and all of our clients.
‘ZEDRA stands firmly with the people of Ukraine and we completely and utterly condemn any acts of aggression that violate international law.
‘The firm and its related entities are in constant dialogue with all international regulatory authorities and continue to monitor, review and update internal controls accordingly. We are carefully watching the developments and decisions of the EU, US and UK governments and those of their allies. The firm is well positioned to act immediately to implement any measures imposed and apply it without delay.
‘We continue to observe and comply with international sanctions, including all the legal and regulatory requirements set out in relevant anti-money-laundering regulations.’
