BVI company at centre of Irish bank probe
Friday, May 28, 2004
DUBLIN, Ireland (AFP): Investigations
centered on a British Virgin Island investment company called Faldor have
revealed inappropriate dealing transactions and tax evasion in an investment
subsidiary of the Allied Irish Bank group, statements from Ireland's financial
watchdog and the bank revealed Thursday. The
Irish Financial Services Regulatory Authority (IFSRA) said it had been
investigating matters involving AIB Investment Managers Ltd (AIBIM) during
1989 to 1996 after it had been alerted by the bank nine months ago.
"The funders and beneficiaries of Faldor
were five former senior executives of AIB and the funds were managed by AIBIM,"
according to the bank. The investigation
found a breach of taxation law in relation to Faldor, which held 919,000
dollars. The company appeared to have been
favoured to the extent of 60,000 dollars at the expense of AIBIM in-house
accounts and inappropriate deal allocation practices.
Unconnected to Faldor, the investigation uncovered that two former and three
current senior executives had "tax issues" with other accounts.
The untaxed money connected with the three current executives was less than
20,000 dollars each, the bank said. AIB
chairman Dermot Gleeson expressed his "dismay" at the findings.
He added: "A number of the practices disclosed were completely unacceptable."
The disclosures about problems at AIBIM follows revelations earlier this month
that AIB had overcharged customers for some foreign exchange deals for about
eight years.
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