09 Oct 2017
9 Ocotber 2017
By Cindy Silviana, Hidayat Setiaji, REUTERS
Indonesia is investigating reports that $1.4 billion (1.07 billion pounds) held by Standard Chartered Plc (STAN.L) in Guernsey, mainly on behalf of Indonesian clients, was transferred to Singapore just before the island moved to new tax transparency rules, officials said.
A source familiar with the matter said late last week, confirming news reports, that the Monetary Authority of Singapore (MAS) and Guernsey’s Financial Services Commission were looking into that movement of assets in late 2015 – months before the Channel Island adopted a global framework in the exchange of tax data.
Under those rules, countries automatically share annual reports on accounts belonging to people subject to taxes in each nation. Britain, Guernsey and Singapore have all signed up, but Guernsey implemented the rules ahead of Singapore.
Indonesian and other regulators have not confirmed the nature of the customers or of worries around the funds, but a person familiar with the matter said part of the concern stemmed from links between some of those private banking clients and the Indonesian military.
Count reading this article to your CPD minutes, by signing up to our CPD WalletFREE CPD Wallet