Post by Sapphire Capital on Jul 11, 2008 23:21:43 GMT 4
www.theaustralian.news.com.au/story/0,25197,23625764-20501,00.html
Anthony Klan and Susannah Moran | May 01, 2008
BANKING giants ANZ and Westpac issued almost all the top-secret tax-haven bank accounts at the centre of an alleged $100 million tax-evasion scheme.
The Australian can reveal ANZ and Westpac issued up to 90 per cent of those accounts created by accounting firm PKF Vanuatu, with the banks creating thousands of offshore accounts in the Pacific tax haven every year.
Conflicting disclosure laws between Australia and Vanuatu - which offers companies and individuals highly secretive financial structures - make it difficult for local banks to comply with laws in both countries.
Australia's Financial Transactions Reporting Act requires all financial institutions to monitor and report any suspicious activities by account holders.
However, under Section 125 of the Vanuatu International Companies Act, bank branches are not allowed to release information about private client accounts to any third parties, including bank head offices, without the consent of account holders or a valid Vanuatu court order.
An architect of one of Vanuatu's biggest offshore banking schemes, BDO Barrett & Partners director Mark Stafford, who is also chairman of the Finance Centre Association of Vanuatu, said ANZ's and Westpac's Vanuatu branches claimed they never shared client information with their Australian parents.
"The banks say for Vanuatu-based transactions they don't release that information any further down the line in their organisational structure," Mr Stafford said. "Based on the discussions I've had over many years, I don't believe (the ANZ and Westpac branches) have ever been pressured to release that information to head office."
Mr Stafford is an associate of PKF Vanuatu senior partner Robert Francis Agius, who was charged this week with conspiring to defraud the commonwealth and money laundering.
Westpac spokesman James Counsel said the bank complied "with the laws of all countries we operate in" and that compliance included the "reporting of suspicious transactions". He would not comment on how Westpac was able to satisfy the laws of both Vanuatu and Australia.
He said the bank would not comment further while a case against Mr Agius was proceeding.
ANZ said it was "aware of its obligations" under anti-money-laundering legislation and had "strong anti-money-laundering policies and procedures throughout the group, including in Vanuatu".
The Australian understands ANZ and Westpac have worked closely with the Australian Federal Police in the Vanuatu sting, which formed part of Project Wickenby, the probe into tax fraud and money laundering.
Mr Agius will appear in court tomorrow after his lawyer yesterday asked for more time to deal with complex issues relating to his case. Mr Agius, 58, is alleged to have helped 400 Australians, including high-profile businesspeople, launder $100 million through offshore accounts.
Two of Mr Agius's colleagues have been implicated in the charges: Fiona McConnichie, who worked at PKF Vanuatu from 1991 to 2003 as its manager of client services, and Kelly Jane Fawcett-Mougues, who began working at PKF Vanuatu in 2001 and is now a partner of the firm.
Anthony Klan and Susannah Moran | May 01, 2008
BANKING giants ANZ and Westpac issued almost all the top-secret tax-haven bank accounts at the centre of an alleged $100 million tax-evasion scheme.
The Australian can reveal ANZ and Westpac issued up to 90 per cent of those accounts created by accounting firm PKF Vanuatu, with the banks creating thousands of offshore accounts in the Pacific tax haven every year.
Conflicting disclosure laws between Australia and Vanuatu - which offers companies and individuals highly secretive financial structures - make it difficult for local banks to comply with laws in both countries.
Australia's Financial Transactions Reporting Act requires all financial institutions to monitor and report any suspicious activities by account holders.
However, under Section 125 of the Vanuatu International Companies Act, bank branches are not allowed to release information about private client accounts to any third parties, including bank head offices, without the consent of account holders or a valid Vanuatu court order.
An architect of one of Vanuatu's biggest offshore banking schemes, BDO Barrett & Partners director Mark Stafford, who is also chairman of the Finance Centre Association of Vanuatu, said ANZ's and Westpac's Vanuatu branches claimed they never shared client information with their Australian parents.
"The banks say for Vanuatu-based transactions they don't release that information any further down the line in their organisational structure," Mr Stafford said. "Based on the discussions I've had over many years, I don't believe (the ANZ and Westpac branches) have ever been pressured to release that information to head office."
Mr Stafford is an associate of PKF Vanuatu senior partner Robert Francis Agius, who was charged this week with conspiring to defraud the commonwealth and money laundering.
Westpac spokesman James Counsel said the bank complied "with the laws of all countries we operate in" and that compliance included the "reporting of suspicious transactions". He would not comment on how Westpac was able to satisfy the laws of both Vanuatu and Australia.
He said the bank would not comment further while a case against Mr Agius was proceeding.
ANZ said it was "aware of its obligations" under anti-money-laundering legislation and had "strong anti-money-laundering policies and procedures throughout the group, including in Vanuatu".
The Australian understands ANZ and Westpac have worked closely with the Australian Federal Police in the Vanuatu sting, which formed part of Project Wickenby, the probe into tax fraud and money laundering.
Mr Agius will appear in court tomorrow after his lawyer yesterday asked for more time to deal with complex issues relating to his case. Mr Agius, 58, is alleged to have helped 400 Australians, including high-profile businesspeople, launder $100 million through offshore accounts.
Two of Mr Agius's colleagues have been implicated in the charges: Fiona McConnichie, who worked at PKF Vanuatu from 1991 to 2003 as its manager of client services, and Kelly Jane Fawcett-Mougues, who began working at PKF Vanuatu in 2001 and is now a partner of the firm.