STM said the advice received by Kentish and the company is that the allegations against him have no merit.
In a statement on its website, STM confirmed that, in November 2015, the ultimate beneficial owner of STM’s client, of which Kentish is a director, was involved in a tax dispute between two unnamed countries for the years 2008 to 2013 over their respective rights to the taxes “correctly” paid by the owner.
STM said Kentish then followed compliance procedures in filing two suspicious activity reports with STM’s money laundering reporting officer, both of which were sent to the Gibraltar Financial Intelligence Unit.
Under Gibraltar law, the GFIU had 14 days to respond regarding potential action, with a lack of response indicating no action will be taken. STM said it received no response and thus continued as normal.
However, on 19 October, two years after the filing, Kentish was arrested by police in Gibraltar on the allegation of failure to disclose.
While the investigation is ongoing, STM confirmed it has complete faith in Kentish and the actions he took.
Aside from this issue, STM said it is also undertaking a review regarding the location of its head office, which is currently in Gibraltar, given operational requirements. In addition to the British Overseas Territory, STM has offices in the UK, Malta, Jersey and Spain.
International Adviser has subsequently revealed a second employee of STM has been arrested.