Funds totalling £13.8 million have been reported to the Money Laundering Officer as a result of the inquiry into the sale of unauthorised offshore bonds by National Irish Bank Financial Services Ltd.
NIB has set aside £1 million for a potential liability to the Revenue Commissioners arising from bogus non-resident accounts. The chief executive of the bank told the Comptroller he accepted that where accounts had been wrongly classified in the past, the bank should pay DIRT arrears.
A review by the bank at the Revenue's request found that as of March 1998 declaration forms for non-resident accounts had not been completed for deposit accounts valued at £606,498. The bank made a "without prejudice" proposal that it pay £337,915 in respect of unpaid DIRT for the 10-year period to June 1998.
An investigation of the Isle of Man CMI bonds sold by NIB Financial Services Ltd had identified 95 accounts containing £13.8 million which have been reported to the Money Laundering Officer because the source of the funds is considered "suspicious". Of the estimated £34 million invested in the bonds up to 1997, about £14 million came from 76 NIB non-resident accounts.
NIB was willing to add £75,000 to the proposed settlement with Revenue to cover further possible DIRT liabilities arising from the bonds inquiry.
