Bermuda Freezes Dictator Augusto Pinochet's Assets

by Mairi Mallon, Royal Gazette

17 May 2001

This story is reproduced by kind permission of the Bermuda Royal Gazette at: http://www.accessbda.bm

The assets of former Chilean dictator Augusto Pinochet have been frozen in Bermuda following a request from the Spanish judiciary.

The Foreign Office in the United Kingdom received a request to freeze the assets of Pinochet in the Bermuda subsidiary of Standard Life Assurance Co on Friday, and over the weekend those assets were frozen.

It is not known how much the military strong man or his family may have with the company or in Bermuda.

A writ was filed on Friday at the Supreme Court in Hamilton, and action taken over the weekend.

Deputy Governor Tim Gurney would not confirm or deny the name of the company where the assets were frozen.

He said: "We did receive a request via the Foreign Office from the Spanish judiciary about certain assets in Bermuda. As Bermuda is party to international conventions, action was taken over the weekend and assets have been frozen."

Documents were filed in the UK by Spanish judge, Baltasar Garzon, in a bid to have Pinochet's assets frozen.

Last year Garzon failed to have Pinochet extradited from Britain to stand trial in Spain for his alleged involvement in political killings and human rights abuses during his 17-year rule.

The Freisenbruch-Meyer Group who manage Standard Life, could not comment on the matter when contacted by The Royal Gazette last night.

But in a letter to the Bermuda Attorney General, dated April 20, Judge Garzon demanded any insurance contracts that may be held by Pinochet in the Bermuda subsidiary be blocked.

The judge, in the letter, suggests the office may be a possible home of investments of Pinochet.

The letter does not explain on what basis the Spanish judge believes Standard Life in Bermuda has a connection with Pinochet or his family.

A "Rogarty Letter" was issued by Spain's Central Court of Investigation and sent to the Bermuda Attorney General.

These letters are used by justice authorities to obtain financial information or initiate legal action in other countries.

The letter calls for "the embargo, blockage and deposit of the balances associated with insurance policies or insurance contracts of any nature, including bank accounts and/or deposits, shares of investment funds and certificates of deposit, owned by Augusto Pinochet Ugarte either directly or through third persons, and those of his family may have in Bermuda."

The Rogarty Letter names the offices of Standard Life Canada offices in Montreal, the Standard Life branch office in Bermuda and the subsidiary of the Life house at Front Street in Hamilton.

The Foreign Office confirmed it had received a Rogarty Letter from Judge Garzon.

The request by Judge Garzon was made as part of an investigation by the Central Court of Investigation in Madrid into offences of "genocide, terrorism and torture," allegedly carried out by the 85-year-old former military dictator.

According to a four-page letter sent to the Canadian Federal Department of Justice, Judge Garzon asked the Canadian government to assist in "the embargo, blockage and deposit of the balances associated with insurance policies or insurance contracts of any nature, including bank accounts and/or deposits, shares of investment funds, and certificates of deposit" owned by Pinochet either "directly or indirectly or through third persons."

The letter also requests a similar freeze be applied to any assets held in Canada by Pinochet's wife Lucia Hiriart Rodriguez, his children and their spouses.

Standard Life, which is the largest mutual insurer in Europe, has a subsidiary in Bermuda on Front Street, while the Canadian office, headed by Claude Garcia, chief executive officer, operates a branch in Bermuda whose manager is directly responsible to Mr. Garcia.

According to Judge Garzon's missive, documentation is also requested from two other insurance companies operating in Bermuda that may hold assets on behalf of the former dictator.

The letter sent to Bermudian authorities is believed to cite "the laws and regulations intended to combat illicit financial transactions," among them, those that "oblige insurance agents and insurance management companies to follow the `know your client' rule".

According to this stipulation, financial services companies operating in Bermuda are required to know the identities of the registered owners of their accounts.

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