Three AIB Executives Disciplined Over 'Tax Issues'

by Jason Gorringe, Tax-News.com, London

22 October 2004

Speaking on Tuesday before the Oireachtas Joint Committee on Finance and the Public Service, AIB chairman Dermot Gleeson revealed that disciplinary action has been taken with regard to three executives still employed by the bank at the time of the Faldor-related inquiries.

In 2003, the bank discovered that a number of senior executives in the early nineties had established an unauthorised investment account with AIB investment managers routed through a British Virgin Islands company, Faldor Ltd.

An internal probe revealed that five other senior executives, three of whom were still with the bank, had "tax issues" which related to other offshore accounts. According to reports, however, the later accounts (which were held until around 1998) and the individuals concerned are thought to have operated at a much lower level than the individuals associated with the Faldor account.

Beyond revealing that disciplinary action has been taken with regard to the three executives in question, Mr Gleeson declined to elaborate further. However, he did reveal that a statement on the matter will shortly be released by the Irish Financial Services Regulatory Authority (IFSRA).

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