Clearstream Confirms Andre Roelants As Chief Executive

by Ulrika Lomas, Tax-News.com, Brussels

16 July 2001

Following last week's announcement by the Luxembourg authorities that there was no evidence of systematic money laundering at Clearstream, the international clearing and settlement operator based in the principality, the company has confirmed the appointment of Andre Roelants as chief executive on a full-time basis.

Roelants was appointed interim chief executive at Clearstream in May to replace Andre Lussi who stepped down after reports in Le Figaro and a book 'Revelations' published in February alleged that Clearstream had operated a system of secret accounts for money-laundering.

Roelants was a member of the executive committee of Dexia, the Belgian financial services group, and a board member of Clearstream for some time before agreeing on Friday to take on the chief executive's position permanently. Dexia Banque International in Luxembourg named Marc Hoffman as interim chairman of its executive board to take Mr Roelants' place. Roelants will step down shortly from his operational functions with Dexia but will remain a member of Dexia BIL's board, it said.

Giving Clearstream a clean bill of health last week, the prosecutor's office said: "The inquiry will continue on other isolated and non systematic facts, which could be laundering, on which several other witnesses have expressed a willingness to file evidence, as well as on the Menatep case," it said.

Menatep is a bank involved in the so-called Kremlingate case, involving the misuse of $10 bn of IMF money, which was one of the reasons for the listing of Russia by the FATF. Just last week Russia passed legislation which would help to prevent future incidents of that type. Menatep was one of the strongest banks in Russia in the early '90s when money-laundering was a national sport, and was anecdotally connected more than most banks with criminal elements.

Still, none of that now worries Clearstream, and Mr Roelants first job will be to sort out the ownership structure of the company. During the investigation, market commentators said that Clearstream, which is owned 50/50 by Deutsche Bourse and Cedel, might be taken over or merged with another company. Deutsche Borse wants to buy out Cedel's 50% stake, but a group of Cedel's owners including the large investment banks who supply most of the liquidity to Europe's bourses want to compete in the auction. The Luxembourg authorities have warned that they would take a keen interest in the ownership of Clearstream, not wanting such a key part of Europe's financial infrastructure to fall into partisan hands.

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