Cayman Government Speaks Out On Euro Bank Situation

by Amanda Banks, Tax-News.com, London

05 February 2003

The government of the Cayman Islands has hotly disputed allegations that former head of the Financial Reporting Unit (FRU), Bruce Gibbs was obliged to leave the jurisdiction 'because of a potential risk to his personal safety'.

Mr Gibbs was found during the course of the Euro Bank money laundering trial to have destroyed vital evidence - allegedly at the behest of an unnamed UK government agency - thus causing the case to collapse. In a statement on behalf of the UK government issued last Wednesday, Governor Bruce Dinwiddy made reference to Mr Gibbs' fear for his safety when his role in the collapse of the trial became public, announcing that:

'This has caused considerable distress to him and his family. He knows that it is impossible for him to return in the circumstances and continue in his job.'

However, the Caymanian authorities last week issued a response to Governor Dinwiddy's statement, in which they announced that:

'The government has an obligation to defend the integrity and reputation of our country and the people of the Cayman Islands. Therefore, with the greatest of respect to the Governor, the statement that Mr Gibbs' personal safety was ever at risk in the Cayman Islands is completely untrue in addition to being unwarranted and highly irresponsible in respect of the reputation of this country.'

The government statement went on to list the various anti-money laundering initiatives implemented in the jurisdiction over the past four years, observing:

'There can be no doubt about where the Cayman Islands stands with respect to the fight against money laundering and ensuring this country is not only a safe place to live, but a safe and reputable jurisdiction to conduct business.'

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