Luxembourg Insurer's American Owner Speaks Out On Money Laundering Debacle

by Ulrika Lomas, Tax-news.com, Brussels

03 May 2001

We reported at the the beginning of the week that the managing director of Luxembourg-based insurer PanEuroLife, Jacques Drossaert, and several other employees, had been detained by French police investigating a suspected money-laundering operation. The company's US-based parent, Nationwide, has now said that it will co-operate fully with the investigation of its European subsidiary, which it acquired from French insurance group Axa in 1998.

The investigation became public on Monday when the life insurer's Mr Drossaert was arrested as he travelled to Paris to meet with French authorities following the detention of certain PanEuroLife employees. PanEuroLife has already said that despite events this week, it will continue to cooperate with all relevant authorities and will "defend itself vigorously against any charges by all legal means."

John R Cook, Nationwide's senior vice president and chief communications officer, said in a statement that the company has been informed of the investigation and that no formal charges have been filed. He said: 'We are seeking information about the nature of the investigation and PanEuroLife will be cooperating fully with authorities.'

Meanwhile, PanEuroLife has reminded customers that the financial security of insurers is guaranteed by law in Luxembourg. The company's indignant statement of earlier this week said: 'We want you to know that our service to you will be unaffected. ... You can be sure that our business as one of Europe's leading insurers remains strong and stable.'

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