Latest news with #GFSC
ITV News
4 days ago
- Business
- ITV News
Bust Guernsey finance company and owner fined £210,000 for handling Russian investments
A Guernsey investment company and its director have been fined a combined £210,000 over handling Russian money. The Guernsey Financial Services Commission (GFSC) started its investigation into ITI Trade Ltd in September 2022, following the suspension of the company's licence a few months prior. The firm has since ceased trading but provided investment and brokerage services to high-net-worth people and investors, with the majority living in higher-risk jurisdictions. The Commission found "much of the business was conducted in Russia", despite strict sanctions on the country due to the war in Ukraine. The GSFC discovered that ITI Trade's trading levels significantly increased in the first half of 2022, following Russia's invasion of Ukraine, with their assets rising by more than 440%. The Commission ruled that the company did not consider "relevant high risk factors", adding that a significant proportion of the firm's clients posed "a high risk of money laundering". The GFSC imposed a £175,000 fine on ITI Trade and charged Director Alex Phil, formerly Alexei Filatov, £35,000. Mr Phil is also banned from holding a supervised role in financial services for two years and 10 months. The news follows the latest Moneyval report, where independent financial auditors urged Guernsey to improve its investigation and prosecution of money laundering. The report also found that the island had failed to respond to financial crime in five out of 11 areas. As part of the GFSC rules, companies must consider "the extent of its potential exposure to the risk of money laundering and terrorist financing". The Commission judged that ITI Trade had failed to regularly assess relationship risk assessments and take into account relevant high-risk factors. The company's customers were sourced by the firm's sister company in Russia, but ITI Trade did not know the identity of these 108 people. The GSFC also found that one customer was linked to a $100 million insider trading scandal and was fined by authorities in another jurisdiction. The Commission concluded: "The firm had very little knowledge of its customers and failed to demonstrate that it had effective oversight of the outsourced service providers, to mitigate the risks present in its outsourced model. "This led to widespread and systemic breaches of the regulatory requirements of the Bailiwick that arose at all stages of the customer relationship, from onboarding to day-to-day management and monitoring. "The failings are particularly concerning due to the large proportion of high-risk customers, the source of funds and wealth of which was unknown to the Licensee. "The Licensee failed to assess the money laundering / terrorist financing risk of its customer relationships, taking into account all of the relevant risk factors, both prior to the establishment of the relationship and periodically thereafter."
Yahoo
12-06-2025
- Business
- Yahoo
Bank Aston to be first locally licensed Guernsey bank in 30 years
Bank Aston has secured a banking licence from the Guernsey regulator that will make it the first locally licensed bank in the jurisdiction within 30 years. Bank Aston positions itself as a specialist provider for offshore trustees, investment funds, and family offices, which are key sectors in the Channel Islands' financial services industry. The firm is hoping to reinvigorate the offshore sector, which has £800bn in assets under management and £250bn in bank deposits in the Channel Islands alone. Guernsey Financial Services Commission (GFSC) has granted it 'Licensed with Conditions,' which is subject to conditions during Bank Aston's launch phase. The bank will begin accepting institutional deposits and roll out its complete range of services once fully licensed. Guernsey's last locally-based bank ceased trading in 1996. James Bennett, co-founder of Bank Aston, said: 'Banking is becoming a huge problem for offshore institutions. 'They face increasingly slow approvals, poor customer services and eye-watering fees with decisions being taken remotely by legacy banks whose risk appetite is steadily declining.' Bank Aston said it would streamline the onboarding and service delivery process through leveraging advanced technology. The firm added its deep knowledge of the offshore market would allow it to service consumers 'more quickly and competitively than is currently the case'. Brown has 40 years' experience including stints at the Financial Conduct Authority, Payment Systems Regulator and Bank of England. He is also a board member and founding investor of fintechs OneiD and Form3. Co-founder Jay Goss said: 'Few people realise the seriousness of the situation. The difficulties with onboarding and running accounts is starting to impact the whole industry. 'But there is an opportunity as well. We see Bank Aston as a commitment to Guernsey's future and to ensuring the island remains relevant, resilient and ambitious on the global financial map.'
Cision Canada
13-05-2025
- Business
- Cision Canada
Bullish partners with the Gibraltar Government and GFSC to pioneer world's first crypto clearing regulation
GIBRALTAR, May 13, 2025 /CNW/ -- Bullish, one of the fastest-growing regulated virtual asset exchanges, today announced its partnership with the Gibraltar Government and the Gibraltar Financial Services Commission (GFSC) to develop the world's first regulation for the clearing and settlement of derivative contracts settled in virtual assets. This innovation will enable virtual asset derivative contracts to be cleared and settled in virtual assets by a recognized clearing house for the first time. This groundbreaking initiative moves beyond the limitations of traditional fiat-based clearing and settlement infrastructure and marks a significant milestone in the evolution of virtual asset regulation. Over the past six months, Bullish and the GFSC have collaborated and agreed to create a regulatory framework that seamlessly adapts traditional finance clearing regulations with the unique requirements and capabilities of the virtual asset market. For example, under the proposed clearing framework, select virtual assets may be eligible as collateral and settlement currency. The selection criteria will follow the principles underpinning existing traditional clearing regulations. Additionally, the framework will expand the range of institutions authorized to hold collateral, enhancing market integrity and participation while mitigating key risks. Setting the standard for a crypto clearing solution Major virtual asset exchanges have been performing the clearing function without appropriate regulatory oversight, leading to failures impacting customers. The proposed regime introduces a regulated clearing house entity, separate and independent from the exchange and its participants, with improved transparency and capitalization to strengthen market infrastructure protection. In a separate announcement, His Majesty's Government of Gibraltar expressed its enthusiasm for the framework, which fosters trust, resilience, and integrity in virtual asset markets. Bullish warmly welcomes their announcement and is excited to work alongside the government and GFSC to bring this groundbreaking regulatory framework to fruition. "There is currently no regulation that specifically addresses the clearing needs of the crypto industry. We aim to change that by introducing a framework that manages risk for virtual asset trading and is aligned with traditional market infrastructure standards," said Tom Farley, Bullish Group CEO. "While Central Counterparties have become more robust in other asset classes, this initiative will bring that same robust risk management and regulatory oversight to the crypto clearing space that EMIR & Dodd-Frank brought to traditional derivatives markets. We welcome the announcement from the government of Gibraltar and look forward to introducing our joint proposal to the market." The Hon Nigel Feetham KC MP, Minister for Financial Services adds, "Gibraltar is renowned for pioneering clear regulation and embracing forward-looking technology, being the first jurisdiction globally to introduce legislation for firms using Distributed Ledger Technology. We are excited to deepen our relationship with Bullish and to introduce this unprecedented virtual asset clearing solution to the market." Bullish exchange poised to become first regulated virtual asset clearing house globally In anticipation of the new framework, Bullish plans to introduce its Clearing Services offering alongside Options trading later this year. This initial launch will integrate a variety of clearing benefits into the market as Bullish moves toward establishing a standalone clearing house under the new regulatory framework. With licenses from the GFSC, the German Federal Financial Supervisory Authority (BaFin), and the Hong Kong Securities and Futures Commission (SFC), Bullish is well-positioned to set the standard for virtual asset clearing solutions. "Our long-term goal is to establish a robust regulatory framework that not only meets the current needs of the virtual asset ecosystem but also anticipates future developments. This initiative underscores our commitment to operating a regulated, compliant exchange that supports institutional participation with an end-to-end clearing solution," said Randi Abernethy, Head of Clearing and Group Risk at Bullish. "Several market participants have already voiced strong support for our business model because they recognize the value of regulated central clearing. We look forward to Bullish becoming the first operational regulated digital assets clearing house in the world." In advance of this, Bullish will form a clearing member working group to bring industry leaders together to share their expertise, establish the initial clearing network, and enhance the robustness of Bullish's clearing ecosystem. Media contact Bullish [email protected] HM Government of Gibraltar [email protected] Gibraltar Financial Services Commission [email protected] About Bullish exchange With a focus on developing products and services for the institutional digital assets sector, Bullish has rewired the traditional exchange to benefit asset holders, enable traders and increase market transparency. Supported by the Group's well-capitalized treasury, Bullish's digital asset spot and derivatives trading services utilize high-performance central limit order matching and proprietary market making technology to deliver deep liquidity and tight spreads within a compliant framework. Launched in November 2021, the exchange is available in 50+ select jurisdictions in Asia Pacific, Europe, Africa, and Latin America. Bullish prioritizes compliance and safeguarding customer assets through robust security measures and regulatory oversight. The business is licensed by the Hong Kong Securities and Futures Commission, German Federal Financial Supervisory Authority, and the Gibraltar Financial Services Commission. For more information on the Bullish exchange, please visit and follow LinkedIn and X. Forward-Looking Statements This press release may include "forward-looking statements" relating to future events or the Bullish Group's future financial or operating performance, business strategy, and potential market opportunity. Such forward-looking statements are based upon estimates and assumptions that, while considered reasonable by the Bullish Group, are inherently uncertain and are subject to risks, uncertainties, and other factors which could cause actual results to differ materially from those expressed or implied by such forward-looking statements. You should not place undue reliance on any such forward-looking statements, which speak only as of the date they are made, and the Bullish Group undertakes no duty to update these forward-looking statements.
