Bahamas Hands Over Suspect Bank's Files To The US

by Amanda Banks, Tax-News.com, London

12 November 2001

Speaking on Thursday, the Bahamas Attorney General Carl Bethel, revealed that the authorities in the Bahamas have handed files on the banking arm of the Al-Taqwa network, which was registered in the jurisdiction, over to the United States.

The organisation is suspected of supplying financing for the terrorist activities of Osama bin Laden, and despite denials from one of Al Taqwa's chief financiers, Youssef Mustafa Nada, the network's assets were frozen last week, and raids were conducted on the homes and business premises of prominent personnel.

The banking arm of the Al Taqwa organisation ceased operations in the Bahamas in April as the result of a government crackdown on 'brass plate' banks with no physical presence in the jurisdiction. 'Bank Al Taqwa didn't have a physical presence in the Bahamas and were not willing to have one,' explained Rhonda Bain, director of legal affairs at the Attorney General's office. 'However, we have no information from anyone that the bank was being investigated when it was here.'

Ms Bain said that the offshore financial centre had voluntarily decided to hand over the banking records when it heard of the investigation, but that no assets connected with the bank had been frozen. 'We have received no request from the US to freeze any accounts and even if we did there would be nothing to freeze as the bank has not operated in the Bahamas since April,' she observed.

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