Indonesian authorities are currently investigating a suspicious transfer, involving USD $1.4 billion, by Standard Chartered Plc made in late-2015. British multinational banking and financial services company Standard Chartered held these funds - the majority on behalf of Indonesian clients - at Guernsey, a Channel Islands in the English Channel near the French coast.
However, several months before Guernsey adopted a global framework for the exchange of tax data known as the Common Reporting Standard (implying enhanced transparency regarding annual reports on accounts held by people subject to taxes in each country), the USD $1.4 billion was transferred to Singapore. Although Singapore also adopted this framework, Guernsey was sooner with the actual implementation of the new transparency rules.
Based on a Bloomberg report, it was Standard Chartered itself that reported the transfer to relevant regulators. The Monetary Authority of Singapore (MAS) and Guernsey's Financial Services Commission apparently are also looking into the matter. Guernsey is known to be a low-tax, offshore financial center. Standard Chartered closed its operations on Guernsey in 2016.
Hestu Yoga Saksama, spokesman for Indonesia's Tax Office, said his institution will check whether the Indonesian clients involved in the transfer have reported their assets and paid taxes to the Indonesian government. This investigation should be completed by the end of the month.
Ken Dwijugiasteadi, Head of the Tax Office, informed that 81 Indonesian citizens were involved in the transfer, including 62 Indonesians who participated in Indonesia's recently completed tax amnesty program.