Indonesia is to investigate whether citizens linked to the transfer of US$1.4 billion of Standard Chartered PLC private bank client assets complied with tax amnesty requirements.
The Indonesian Ministry of Finance received data on the fund transfer for tax compliance purposes and found it involved 81 private citizens, without any military, police, law enforcement or civil servants involved, Taxation Director-General Ken Dwijugiasteadi told reporters in Jakarta on Monday.
The government is to coordinate with the bank and expects to complete the investigation by the end of the month.
It comes as European and Asian regulators probe Standard Chartered over the role staff may have played in transferring the client assets from Guernsey to Singapore before new tax transparency rules were introduced, people with knowledge of the probes have said.
The bank conducted an inquiry and notified regulators after employees raised questions early last year about the timing of the transactions and whether the source of customers’ funds had been properly vetted, said the people, who declined to be identified because the details are private.
The assets — held in its Guernsey trust unit for mainly Indonesian clients, were moved in late 2015 before the Channel Island adopted the Common Reporting Standard, a global framework for the exchange of tax data, at the start of last year, the people said.
Standard Chartered shuttered its operations on the island last year.
The Monetary Authority of Singapore (MAS), the city-state’s central bank, and Guernsey’s Financial Services Commission are investigating the chain of events, the people said.
The UK Financial Conduct Authority, Standard Chartered’s home regulator, is aware of the transfers, but is not reviewing them, one person familiar with the matter said at the time.
In a statement made late on Monday, the MAS confirmed it is investigating the Standard Chartered transfer. It said it takes “a serious view of the matter and will take firm action against any financial institution or individual that is found to have breached MAS’ requirements relating to anti-money laundering and countering the financing of terrorism.”
The MAS said it was unable to comment further “as our supervisory probe is still ongoing.”
However, it said that in the past it has “not hesitated to take firm action against financial institutions with control deficiencies and have imposed financial penalties and prohibition orders on culpable individuals where there are serious lapses.”
When breaches of the law are detected, it has worked with law enforcement agencies to pursue criminal prosecutions, the MAS said.
Last year, the MAS took tough enforcement action against several banks over their dealings with 1Malaysia Development Bhd, shutting the local units of two Swiss banks, imposing fines and seizing at least S$240 million (US$177 million at the current exchange rate) of assets.
Four bankers have been jailed in Singapore in relation to the 1MBD affair.
Financial institutions in Singapore are required to assess and understand risks associated with their customers, verify their identities, inquire about the source of their funds, monitor transactions, as well as perform regular account reviews, the MAS said.
“Where suspicious activities are detected, financial institutions have to apply enhanced scrutiny and report these to the authorities accordingly,” the MAS said.
“Singapore will not tolerate the abuse of its financial system as a refuge or conduit for tax-illicit funds,” the MAS added.
Softbank Group Corp plans to keep a stake in the chip designer Arm Ltd, even if it sells a partial interest to Nvidia Corp, the Nikkei reported. The companies are negotiating terms, the newspaper reported, citing sources. Softbank might take a stake in Nvidia after it buys Arm, the report said. Nvidia and Arm might also merge through a share swap, and Softbank would become a major shareholder in the combined company, it said. The two parties aim to reach a deal in the next few weeks, the sources said, asking not to be identified because the information is private. Nvidia is the
MOVING FROM CHINA? The article did not name the company, but Foxconn, Wistron and Pegatron were among firms chosen for a production-linked incentive plan in India An Apple Inc vendor is looking at shifting six production lines to India from China, which could result in US$5 billion of iPhone exports from the South Asian nation, the Times of India reported, citing people familiar with the matter who it did not identify. The establishment of the facility would create about 55,000 jobs over about a year, the newspaper reported, not naming the Apple vendor. It would also cater to the domestic market and expand operations to include tablets and laptops, the newspaper reported. Samsung Electronics Co and Apple’s assembly partners are among 22 companies that have pledged 110 billion
Gold surged to a fresh record on Friday, fueled by US dollar weakness and low interest rates, while silver headed for its best month since 1979. Spot bullion is up more than 10 percent this month, as US real yields lingered near record lows. While the ferocity of rallies in gold and silver cooled in the middle of the week, most market watchers predict there might be more gains ahead. Both metals have added about 30 percent this year, with gold and silver exchange-traded funds boosting holdings to a record, as concern about the fallout from the COVID-19 pandemic fuels demand for
‘ONE-STOCK SHOW’: Turnover hit an all-time high as TSMC continued to determine the local market’s direction and surpassed Visa in market capitalization The TAIEX early yesterday hit an all-time intraday high on the back of soaring Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) shares, before tumbling back to the previous day’s close as the contract chipmaker could not single-handedly prop up the index. The TAIEX rose more than 400 points in the first 20 minutes of trading to hit a record 13,031.7 points, but later pared its gains to close down 0.01 percent at 12,586.73. Turnover was NT$343.252 billion (US$11.63 billion), the highest in the Taiwan Stock Exchange’s history. TSMC continued to dictate the market’s direction, as its early surge by the daily