Swiss Authorities Freeze Accounts In Mediaset Money Laundering Probe

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

07 November 2005

According to reports in the Swiss and Italian press, the Swiss authorities have frozen ten accounts that they believe are linked to an inquiry into alleged money laundering by Mediaset, the private network owned by the Italian Prime Minister Silvio Berlusconi.

NZZ Online reported last week that the Swiss Federal Prosecutor's Office opened its own investigation into possible money laundering on October 3, and has frozen about CHF3 million (US$2.3 million).

An eleventh account linked to Mediaset has also been uncovered in Liechtenstein, the Italian media has reported.

The Swiss authorities have also already blocked twelve other accounts in Switzerland in connection with the case, five of which are said to belong to the Egyptian-born film producer Farouk Agrama, who is believed to be an associate of Mr Berlusconi. These five accounts are thought to hold some CHF140 million, according to the Italian daily, the Corriere della Sera.

Italian prosecutors allege that Berlusconi and 13 other defendants committed the crimes of tax fraud, false accounting, money laundering and embezzlement when Mediaset acquired US film rights through two offshore companies between 1994 and 1996 and artificially inflated the purchase price to avoid 125 billion old lire in tax.

Last month, Judge Fabio Paparella adjourned a preliminary hearing until November 7 while the defence team examine some 1,500 pages of evidence deposited by the prosecution. A full trial could be held next year when Mr Berlusconi would also be fighting a re-election bid.

In a statement issued last week, Mediaset denied any link to the suspected accounts in Switzerland and Liechtenstein.

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