One of the biggest offshore banks in Barbados has been named in a major international lawsuit alleging a multibillion-dollar fraud scandal.
Malaysian state fund 1Malaysia Development Berhad (1MDB) has filed a legal claim against corporate services provider Amicorp Group, alleging it knowingly facilitated over $7 billion in fraudulent transactions.
The claim, among one of the biggest filed by 1MDB, was lodged in the British Virgin Islands (BVI) High Court against eight Amicorp entities, namely, Amicorp BVI Ltd of the British Virgin Islands; Amicorp Management Ltd of the BVI; Artemas Wealth Management (Barbados) Ltd, formerly known as Amergeris Wealth Management (Barbados) Ltd of Barbados; Amicorp Bank and Trust Ltd of Barbados; Amicorp Fund Services N.V. of Curaçao; Amicorp Singapore PTE Ltd of Singapore; Amicorp Hong Kong Ltd of Hong Kong; Amicorp Ltd of Hong Kong; and Amicorp’s chief executive officer Toine Knipping.
Role
It alleges that they played a vital role in enabling the sovereign wealth fund to be defrauded between 2009 and 2014.
Amicorp Bank’s office is located at Carleton Court, High Street, The City. Its website notes that Amicorp is a power player in international cross-border structuring and that “Barbados is a Caribbean jurisdiction on the OECD (Organisation for Economic Cooperation and Development) white list that offers highly attractive international tax planning benefits without the stigma of being blacklisted”.
When contacted, Central Bank Governor Dr Kevin Greenidge, in a written response to the DAILY NATION stated: “The Central Bank of Barbados is aware of the ongoing legal proceedings involving certain entities within the Amicorp Group, which are primarily domiciled in the British Virgin Islands.
“It is important to note that these proceedings do not directly concern Amicorp Bank and Trust Ltd (ABTL), a licensed financial institution operating in Barbados under the Financial Institutions Act, Cap. 324A.”
Asked about the oversight of offshore banks, he explained: “The Central Bank . . . conducts continuous supervision of all licensed financial institutions, including those engaged in international financial services.
“This is in keeping with the Supervisory Framework published on our website, which outlines the processes for assessing the safety and soundness of regulated institutions. ABTL is subject to rigorous inspections, ongoing monitoring and compliance checks with anti-money laundering and combating the financing of terrorism regulations.”
Steps
He also stated that the Central Bank’s Intervention Policy Framework “outlines the steps that can be taken to address deficiencies or non-compliance by licensed entities. These measures include administrative penalties, suspension of activities or the revocation of a licence where necessary. Any such enforcement actions are guided by due process and aim to maintain the integrity of the Barbadian financial system. Should investigations confirm
links between the allegations and ABTL’s operations in Barbados, appropriate and proportionate measures will be implemented.
“The Central Bank is committed to ensuring that Barbados retains its reputation as a wellregulated and transparent financial jurisdiction. We remain actively engaged in monitoring this situation and will continue to take the necessary steps to protect the stability of our financial system,” Greenidge added.
Dubbed one of the largest financial scandals in history, the claim alleges that Amicorp played a pivotal role in facilitating the laundering of more than US$7 billion in misappropriated 1MDB funds between 2009 and 2014. The claimants accuse Amicorp of fraudulent trading, dishonest assistance in breaches of fiduciary duty and conspiracy to commit unlawful acts.
They further allege that Amicorp established and managed an intricate network of shell companies, sham transactions and fraudulent financial structures that disguised the movement of stolen funds. The funds were allegedly funnelled through a global network spanning jurisdictions such as Singapore, Barbados, Curaçao, Hong Kong and the BVI.
Reports indicate that a key element of the claim is the alleged involvement of Amicorp Bank, which is registered in Barbados, that is accused of providing access for the fraud to the global financial system. Amicorp is alleged to have used fund entities and banking services to repeatedly cycle assets through 1MDB’s subsidiaries, creating the illusion that the stolen assets were legitimate investments generating returns, “when in fact they had been misappropriated”.
A spokesperson for 1MDB board told the Malaysia media: “There is, in our view, strong evidence to suggest that Amicorp – at the highest levels – knew they were involved in a dishonest and illegal money laundering scheme designed to transfer large sums of cash away from its intended beneficiary, the people of Malaysia.
“We are confident that our claim will succeed and are committed to holding accountable the institutions and individuals involved in misappropriating money from Malaysia’s sovereign wealth fund, while ensuring the recovery and restitution of these assets back to the Malaysian people,” the spokesperson added. (MB)
