Nigeria
Six Swiss banks turned a blind eye on Abacha accounts

afrol.com, 5 September - The Swiss Federal Banking Commission (SFBC) has found that six Swiss banks did not fulfill their business obligations in the case of the accounts of the Nigerian ex-dictator Sani Abachi. The investigation by SFBC was asked for by the Nigerian government in November last year. 

When Abacha died in 1998, he was suspected of having placed 3 billion US$ abroad. 19 Swiss banks blocked 700 million US$ found on accounts in Abacha's name. The SFBC has investigated these 19 banks and concludes that 6 of them did not fulfill their obligations. 

Yesterday, the SFBC released the results of its comprehensive investigation into the business relations of Swiss banks with the entourage of the former dictator of Nigeria, Sani Abacha. In its final report the SFBC identifies organisational weaknesses and shortcomings in several banks. Besides Switzerland, other international financial centres also were exposed to money flows from the entourage of Sani Abacha.

The Swiss press finds the incidents embarrassing for the international reputation of Switzerland, and remembered the "Marcos case" (after the deceased dictator of the Philippines), which should have served as a lesson to Swiss banks. However, the report fro, the SFBC demonstrates that several banks did not learn that there have been set new standards of banking in Switzerland. In particular the leading banking house Credit Suisse Group is being criticized for still being uncritical when it comes to the cash of internationally condemned dictators. 

The SFBC conducted investigations in nineteen banks, which entered into business relations with the entourage of the former President of Nigeria, Sani Abacha, in order to establish whether the banks complied with their obligations of diligence, including the “know your customer” rules and the duty to clarify suspect transactions.

Only partial compliance with diligence obligations 
The SFBC established that, among the banks subject to its investigation, five fully complied with their obligations of diligence. In several banks, however, the SFBC found violations and organisational shortcomings. Whereas in some they can be considered less serious, in 6 banks, violations and organisational shortcomings were serious enough to give rise to counter measures both on the personnel and the organisational level.

Full compliance with reporting requirements
The SFBC found that all banks complied with the reporting requirement provided for under the Anti-Money Laundering Act by reporting their suspicions to the Money Laundering Control Office as soon as there were sufficient indications regarding possible criminal origins of the funds. The funds in question were frozen within the banks, as required by the Act.

International dimensions
The investigations of the SFBC show that not only in Switzerland, but also in other major international financial centres, banks were involved in transactions with funds from the entourage of Sani Abacha.

The Chairman of the SFBC, Dr. Kurt Hauri, stated to the press that “the fact alone, that significant funds of dubious origin from the close entourage of the former Nigerian president Sani Abacha were deposited on Swiss bank accounts, is disturbing and damaging to the reputation of the Switzerland's financial sector. The financial centre and Switzerland as a whole have no interest in attracting assets that stem from corruption and other criminal origins."

- Switzerland, as this case illustrates, is by far not the only international financial centre faced with the challenge of fighting the laundering of corruption proceeds. The SFBC, therefore, is strongly promoting international regulatory action with respect to the handling of corruption proceeds by financial institutions, Hauri concluded.

Source: Based on Eidgenössische Bankenkommission

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