Guernsey financial consultant fined and banned after working for ‘alleged war criminal’
A financial consultant living in Guernsey has been fined £210,000 and banned from the industry for nine years after she knowingly worked for an “alleged war criminal”, the island’s regulator has concluded.
A two-and-a-half-year investigation by Guernsey’s Financial Services Commission has ruled that Ginette Louise Blondel “consistently failed to understand the gravity and consequences of her actions” and “caused reputational damage to the Bailiwick as an international finance centre”.
She had roles in regulated financial services on the island between 2000 and 2013 before leaving and gaining employment with “Client 1” – whom she had previously worked for – becoming his son’s personal assistant.
However, the regulator summarises that Ms Blondel’s remit stretched far beyond this, advising and assisting “Client 1” with his business and financial activities.
The unnamed man is described as “high-risk” and “an alleged war criminal” whom Ms Blondel continued to provide services for until March 2020, despite knowing this and that he was under investigation for money laundering.
On one occasion the investigation uncovered that she received one million euros into her personal bank account from a company owned by “Client 1” to set up a proposed Guernsey trust company.
This did not go ahead and Ms Blondel instead used the money to make more than 150 payments to multiple third parties on behalf of her client.
The regulator believes this “led to a very real risk that Ms Blondel may have been used to launder the proceeds of crime, a risk which Ms Blondel has consistently failed to recognise”.
In June 2020, “Client 1” was convicted of money laundering and aggravated tax fraud by a European court and sentenced to four years in prison.
He is currently wanted in connection with alleged war crimes under an international arrest warrant.
The regulator found Ms Blondel also knowingly worked for another “very high-risk” family from Central Asia named “Client 2”.
They had allegedly been involved in corrupt business practices and she provided services to 12 companies on behalf of them.
Ms Blondel was found to have breached laws in Guernsey by carrying out regulated activities without a licence and failing to have the required policies, procedures and controls in place to manage the risk of providing services to these clients.
Gabriel Vedrenne, Senior Reporter at ACAMS moneylaundering.com, has been looking at Ms Blondel as part of an investigation into the issue.
He told ITV News: “Such a fine and such a sanction is pretty big, especially for this profile so that’s clearly a signal the authority is sending to all legal professionals, just to tell them they have to be cautious and play according to the rules.”
ITV News has attempted to contact Ms Blondel for a response.
The regulator said she apologised for breaking the law and cooperated with its investigation.
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