TITLE

The liabilities of financial institutions for the fraud of third parties: The Jersey, Channel Islands experience

AUTHOR(S)
Dessain, Anthony
PUB. DATE
October 2001
SOURCE
Journal of International Banking Regulation;Oct2001, Vol. 3 Issue 2, p145
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
Jersey is recognised as being an independent and well-regulated finance centre providing tax benefits and investment opportunities, In order to protect its reputation, laws and procedures are constantly being developed. The liabilities of financial institutions for the fraud of third parties is one such development. The most common criminal law offences include fraud, false accounting and statutory crimes (such as money laundering (relating to banking, insurance, investments and trusts)), insider dealing and drug trafficking. Civil actions are also used in the fight against abuse and wrongdoings of third parties. Jersey courts will readily impose an injunction to aid proceedings in a foreign court. The courts' power to impose or create constructive trusts and thus prevent unjust enrichment is constantly evolving for example, 'remedial constructive trusts' may apply in Jersey. Such laws also affect banks, which have duties both in their own capacity (to make certain disclosures to prevent an injustice) and as trustees to exercise their discretion properly. Banks may also be third parties and subject to injunctive relief. The regulatory requirements apply to banking, insurance and investment business and most recently to trust and company administration. It is imperative that these measures be implemented to ensure that fraudulent third parties do not go unpunished and Jersey continues to flourish as a safe financial centre.
ACCESSION #
6852841

 

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