NORTHERN ROCK GUERNSEY has corrected a website error that suggested it was accepting deposits from Zimbabwe.
It comes after former Conservative leader William Hague turned the spotlight on its Guernsey subsidiary’s dealings with Zimbabwe in a House of Commons debate. The shadow foreign secretary said the humanitarian crisis in Zimbabwe was probably the worst anywhere outside a war zone.
‘One in four Zimbabweans have become refugees and those who remain are at the mercy of a regime that beats, kills and tortures with impunity,’ said Mr Hague.
However, he moved on to say there was wider agreement that businesses should be responsible in their approach to investment in the country and he was concerned to see that Northern Rock Guernsey was accepting deposits from a country on the financial sanctions list.
‘Treasury ministers who have asked about it have not yet been able definitively to state that Northern Rock complies with the EU financial sanctions regime. Given that the bank is owned by the British taxpayer, ministers should be able to state that. An explanation of why that subsidiary is asking for deposits from Zimbabwe would be welcome.’
But the company has now said it was not asking for deposits from Zimbabwe.
‘Northern Rock Guernsey does not accept deposits from any individual, entity or country placed on the financial sanctions list,’ said a spokesman. ‘In addition, we restrict deposits from areas classed as sensitive jurisdictions.
‘In March 2007, the Northern Rock Guernsey board approved a revision to company policy to no longer offer new accounts for Zimbabwean residents and no new accounts have been opened since that date. Unfortunately, the Northern Rock Guernsey website was incorrect. The name Zimbabwe should not have been shown. This was an error.
‘All transactions in relation to existing accounts are subject to monitoring. Currently, Northern Rock Guernsey has a very small number of personal accounts from residents of Zimbabwe.
‘All are long-established customers who have been carefully vetted and have no governmental or political connections that Northern Rock Guernsey is aware of.’
Zimbabwean president Robert Mugabe is under increasing international pressure. A draft US resolution to the UN will call for sanctions against Mugabe and demand that his government immediately begin talks with the Movement for Democratic Change. Its leader, Morgan Tsvangirai, pulled out of the recent election in a bid to calm the violence.
Guernsey Financial Services Commission director-general Peter Neville said all financial services businesses in the Bailiwick were required to exercise a higher degree of awareness of potential problems with taking on customers from places where bribery and corruption were considered prevalent.
A section of the commission’s website dealt with UN and EU sanctions and firms were expected to keep up to date, he said.
‘The website also advises that any breach of sanctions may result in criminal prosecution and the imposition of a lengthy prison sentence and/or a heavy fine.’
Article posted on 8th July, 2008 - 2.29pm
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