{"id":2325,"date":"2021-05-16T16:20:35","date_gmt":"2021-05-16T14:20:35","guid":{"rendered":"https:\/\/outsourcingcompliance.com\/?p=2325"},"modified":"2021-08-12T07:49:16","modified_gmt":"2021-08-12T05:49:16","slug":"jersey-offshore-leak","status":"publish","type":"post","link":"https:\/\/outsourcingcompliance.com\/en\/jersey-offshore-leak\/","title":{"rendered":"JERSEY OFFSHORE LEAK"},"content":{"rendered":"\n[et_pb_section fb_built=”1″ _builder_version=”3.22″][et_pb_row _builder_version=”3.25″ background_size=”initial” background_position=”top_left” background_repeat=”repeat”][et_pb_column type=”4_4″ _builder_version=”3.25″ custom_padding=”|||” custom_padding__hover=”|||”][et_pb_text _builder_version=”4.8.1″ background_size=”initial” background_position=”top_left” background_repeat=”repeat”]

In the fall of 2020, a television programme<\/em><\/a> was made on a journalistic investigation called \u201cJersey Offshore leak\u201d<\/strong>. In short 350\u2019000 confidential documents leaked from the archives of a Jersey trust company called \u201cLa Hougue Financial Management Services Ltd\u201d.<\/p>\r\n

Amongst the findings is a confidential memo dating 6th July, 2000<\/strong> on \u201c11 ways\u201d<\/strong> to shift assets offshore to a trust account. (Please see Sources for the details)<\/em><\/p>\r\n

In those days, I had already started my young career within the compliance department of a renown Swiss Private bank of Dutch origin and only very few compliance officers would have detected any wrongdoing with those ways.<\/p>\r\n

Fast forwarding to today, 20 years later, I wanted to review if the compliance requirements of the Swiss banking industry would enable a detection of each of these scenarios preventing potential illicit activity. Having practised or at least closely collaborated in AML compliance matters in several jurisdictions, including EU, UK and US, the Swiss AML framework is a pioneer and considers as amongst the tier1 highest standards Worldwide.<\/p>\r\n

In the AML sector, as a fact, the AML framework is the result of corrective measures to (illegit) actions\/ practices that already occurred. Meaning that when an action is initiated it may not specifically be considered by laws as illegit nor contributing to money laundering or terrorism financing. But years later, with a better understanding and within a different mindset it was judged as illegit.<\/p>\r\n

For example, in some years from now, it will not be surprising to understand that an \u201cAmazon\u201d has to pay taxes where it generates the revenues and not where it decides to pay them opting for lower tax jurisdictions.<\/p>\r\n

 <\/p>\r\n

I broke down the 11 ways into 3 categories<\/strong><\/p>\r\n

– Legit creative compliance
– Aggressive tax avoidance
– Tax evasion (fraud)<\/p>\r\n

Key takeaways :<\/strong> The following 6 check points<\/strong> of AML compliance controls found application and would efficiently prevent money laundering on 10 out of the 11 ways of the memo:<\/p>\r\n