Ansbacher (Caymans) Could Reveal Identities Of Further Irish Investors In Tax Scam

Amanda Banks, Tax-news.com, London

13 March 2001

A full list of the identities of Ansbacher (Cayman) account holders could be revealed by the bank soon as part of its decision to comply with a High Court investigation. Ansbacher says it will apply to the Grand Court of the Caymans for authorisation to name its depositors.

The move reflects a significant about turn by the bank since investigations into Ansbacher's dealings with its Irish investors were first carried out three years ago. At the time the bank refused to co-operate with the investigating tribunal, but the high media profile accorded to the proceedings did not go down well in other major offices of Ansbacher (Cayman) such as London and South Africa who were worried that it might affect the bank's credibility.

The tribunal was only successful in identifying 120 names, due to the fact that the information kept in Ireland by the bank was coded; but the current court case is likely to be more fruitful for the Irish tax authorities as it has now come to light that much information was sent to the bank's branch in Cayman in uncoded form, offering Irish authorities the chance of adding substantially to their bag of errant tax-payers.

The recent relaxation of laws governing banking secrecy in the Caymans and its commitment to bring its offshore sector into line with international standards is likely to force the Court to grant the bank's application. The Irish media have been surmising that the Caymans has come under so much pressure from the multilaterals such as the OECD and the FATF that it must save face by sacrificing Ansbacher to the Irish courts. Another theory is that Ansbacher does not actually believe that the Irish tax investigators have a proper case against the bank or its clients. On the second theory, the bank must be thinking that it won't do itself any favours if it plays stubborn and is simply hoping that the Caymans Grand Court will refuse permission.

However, if Ansbacher does disclose the names of the remainder of its account holders, it will make life a lot easier for the tax officials conducting the investigation. The combination of Cayman's previous attitude to banking secrecy and Ansbacher's complex system of diverting cash to discretionary offshore trusts has made it difficult to determine who was involved and how much money they actually possess. The Caymans Grand Court will hold its hearing on April 9.

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