Speed read
- Trust and fiduciary services provider Estera has been hit with heavy penalties by the Bermuda Monetary Authority (BMA) after it failed to address anti-money laundering issues in its internal processes.
- The hefty fine of $500,000 (£400,000; €447,000) relates to the Jersey-headquartered firm’s failure to comply with anti-money laundering and counter-terrorist financing (AML/CTF) legislation in the British Overseas Territory.
- The BMA had expressed concerns over the company’s practices back in 2016.
- Not compliant
- The regulator said: “The company was acquired from a group in January 2016 and is licensed to conduct trust business by the [BMA].
- “Following an on-site inspection conducted by the [BMA] in late 2016,several deficiencies in the company’s [AML/CTF] programme were identified. These were historic and pre-dated the acquisition. The [BMA] required these deficiencies to be rectified by 31 December 2017.
- “The remediation was not, however, completed within that timeframe.”
The Bermuda Monetary Authority has fined Estera Services (Bermuda) Ltd $500,000, the financial-services regulator announced yesterday.
- The BMA said the civil penalties were imposed under the Trusts (Regulation of Trust Business) Act 2001 and relate to deficiencies in the corporate services provider’s anti-money laundering and antiterrorist financing programme.
- Estera was formed in 2016 by a management buyout of what was previously known as Appleby Fiduciary Services.
- The BMA said the deficiencies “predated the acquisition”.
- The BMA stated:
“The civil penalties have been imposed for the company’s failure to adequately comply within a specified timeframe with certain requirements of the Proceeds of Crime (Anti-Money Laundering and Anti-Terrorist Financing) Regulations 2008 (the Regulations), and specifically the regulations relating to the application of customer due diligence and enhanced due diligence, internal controls, and risk assessment.”
- The regulator said it had required the deficiencies in the AML/ATF programme to be rectified by the end of 2017, but Estera failed to make the deadline.
- The regulations had been in effect since 2009, and that this case highlighted the importance of licensees having up-to-date AML/ATF measures in place and that they should deal with shortcomings identified by the regulator “within reasonable time frames”.
However, Estera said that it has now addressed the issues the BMA identified. The firm said:
- “The fine relates to missing the deadline for the documentary remediation of historical client files. Our client records have now been fully updated and independently reviewed and Estera Services (Bermuda) Ltd can confirm the portfolio is compliant with regulatory requirements.
- “Estera has invested significant capital and resourcesin implementing enhanced client-related procedures to maintain the highest standards of compliance.”
Read more
http://www.royalgazette.com/business/article/20190615/bma-fines-estera-500000
https://international-adviser.com/bermuda-fines-trust-provider-over-money-laundering-failures/?
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