Indonesia to probe stanchart client transfer

JakartaIndonesia will investigate whether citizens linked to the transfer of US$1.4 billion (RM5.91 billion) of Standard Chartered plc (StanChart) private bank client assets complied with tax amnesty requirements.

The country’s Finance Ministry 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, Ken Dwijugiasteadi, DG for taxation, told reporters in Jakarta on Monday. The government will co-ordinate with the bank and expects to complete the investigation by the end of October.

It comes as European and Asian regulators probe StanChart 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.

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 2016, the people said. StanChart shuttered its operations on the island last year. — Bloomberg