Irish Intercontinental Bank, which played a key role in the complex web of loan transactions at the heart of the Ansbacher accounts, said last night it had always acted in good faith and never intended to facilitate tax evasion. In a statement, the bank said it would continue to co-operate with the Revenue Commissioners and the inspectors appointed earlier this week by the High Court to investigate the affair.
The affair comes at a particularly delicate moment for IIB, which is one of the three bidders for the State-owned ICC Bank.
In its statement, IIB said it had maintained a banking relationship with Ansbacher Cayman since early 1991. It said IIB had furnished all information in its possession to the authorised officer appointed by the Tanaiste, Ms Harney, and has assisted the McCracken and Moriarty tribunal.
"The bank has always conducted its business in accordance with legal, regulatory and legitimate banking practice," the statement continued. "Information emerging from the various investigations now indicate that business which the bank transacted in good faith may have been part of a complex structure which was designed to, or which had the effect of evading Irish taxes. "The bank would be very concerned if this proves to be the case, and looks forward to co-operating fully with the revenue authorities and with the inspectors appointed by the High Court to investigate the matter," IIB said.
The High Court heard that IIB gave loan and guarantee facilities of up to £24 million sterling to Irish individuals and companies which were secured on cash deposits provided by Ansbacher from 1991 to 1997.
According to the affidavit presented to the court by Mr Paul Appleby of the Department of Enterprise, Trade and Employment, the institution also made money out of this financing system. In one loan transaction, the net result for IIB seemed to be that it was able to lend the Irish borrower his own offshore deposit "for a 1 per cent, virtually risk free, margin".
The borrower's money sometimes ended up back in IIB in Dublin, through a circuitous system of deposit manoeuvres through various bank accounts abroad.
According to Mr Appleby, an important by-product of the complex scheme was that it enabled IIB to "respond restrictively" to standard auditing enquiries.
