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Letter to the Chairman from Ann Grant, Vice Chairman, Standard Chartered Capital Markets Ltd
Many thanks for the opportunity to give evidence at the International Development Select Committee on the 9th May 2006.
I promised to follow up on the subject of the Wolsfberg Principles, their relevance to Standard Chartered and transactions such as the oil-backed financing to Sonangol.
As I have now discovered, the Wolfsberg Group is an industry group formed in 2000 by eleven International Banks involved in private banking. In 2000, Standard Chartered was not significantly involved in private banking, and were not part of the Group. Since the original Wolfsberg Principles were drafted in 2000, Wolfsberg Group consultations have been expanded to a wider group of international banks, including Standard Chartered, however the Wolfsberg Group has chosen not to expand its membership outside the original eleven banks. Standard Chartered is an active participant in Wolfsberg consultations and is fully committed to the Wolfsberg Principles.
The Principles were drawn up to give guidance to financial institutions on how they can ensure the legitimacy of funds received with a view to preventing the money laundering linked to the proceeds of crime. Standard Chartered has fully embedded the Wolfsberg Principles into our internal governance and operational procedures aimed at tackling money laundering.
The Wolfsberg Principles do not provide guidance on the monitoring or transparency of funds lent to customers. Therefore, in relation to the Bank's approach to the evaluation of oil-backed-financing, the Principles are not relevant.
If I can be of further assistance on any matter, please do not hesitate to contact me.
May 2006 |