Italian Authorities Examine Swiss Accounts In Banking Probe

by Ulrika Lomas, for LawAndTax-News.com, Brussels

09 January 2006

The Italian tax authorities are reportedly investigating a number of bank accounts in Switzerland and Liechtenstein in an attempt to establish whether Italian politicians were linked to the scandal-tainted takeover of Banca Antonveneta.

The investigation forms part of a wider probe by the Italian authorities into alleged securities violations and fraud during the an attempt by Banca Popolare Italiana to take control of Banca Antonveneta last year.

Police in Switzerland and Liechtenstein are conducting searches to find evidence that Italian politicians, none of whom have been named, benefited from insider information, according to Dow Jones Newswires.

BPI's bid derailed following allegations that its former head, Gianpiero Fiorani, had masterminded several illegal financial operations. The subsequent investigation led to Fiorini's resignation, along with that of BPI's board.

The Bank of Italy has also been accused of unfairly favouring BPI in its bid to takeover Banca Antonveneta, and it is believed that the affair led to the resignation of Bank of Italy Governor Antonio Fazio last month.

Dow Jones stated that a total of 80 businessmen, financiers and real estate agents are reported to be under investigation as part of the probe. While no elected officials are said to be under investigation, media reports of court-ordered wiretaps have revealed that numerous politicians had dealings with some of the accused bank executives.

A majority stake in Banca Antonveneta has since been acquired by the Dutch banking group ABN AMRO, which stated on Monday that it had paid EUR2.1 billion for BPI's 26% stake in the bank, taking the Dutch bank's total holding to 55.8%. It is the first time that a foreign bank has bought a major Italian lender.

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