Speaking to the Jersey Evening Post on Thursday, the bank's head of corporate communications in Dublin, David Holden explained that the investigation was sparked by a reporting 'anomaly' uncovered during routine checks:

'Matters of compliance are complex, especially for large banks like ourselves operating in a number of jurisdictions. No longer can we say at any one time that we are completely compliant in every respect in every jurisdiction,' he told the local newspaper, adding that:

'We have a large number of people whose sole job it is to police these matters internally, as a matter of routine. From time to time they discover an anomaly. In this case, there was a reporting requirement. This particular piece of legislation to do with offshore trusts is complex and we have complied with the law, in close co-operation with the authorities in Jersey and the UK.'

Both Mr Holden, and deputy director general of the Jersey Financial Services Commission, Helen Hatton last week condemned a report in the Sunday Times which suggested that up to 9,000 Jersey-based trusts had been reported to the Inland Revenue, and warned that the case could set a precedent for other offshore trust holders in the jurisdiction:

'This is not a precedent issue,' Mrs Hatton explained to the JEP. 'It arises out of well-established law. There is nothing ground-breaking or peculiar about this case.'

Mr Holden, meanwhile, revealed that the total number of trusts managed by BoI in Jersey and Dublin amounts to hundreds, rather than thousands, as the bank is currently winding down its trust business.