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Indonesia to probe Standard Chartered client transfer

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Staff Writer | October 11, 2017
Indonesia is to investigate whether citizens linked to the transfer of $1.4 billion of Standard Chartered private bank client assets complied with tax amnesty requirements.
Standard Chartered
Banking   Taxation Director-General:
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.

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.


 

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