Posted on 07/17/2002 12:56:04 AM PDT by kattracks
King Fahd is moving large sums through LiechtensteinWestern banks may refuse deposits from members of the Saudi royal family under guidelines drawn up to identify "politically exposed" wealthy individuals whose assets could in future be confiscated.
The move comes as details emerge of how King Fahd - head of the dynasty and one of the world's richest men - has transferred large sums through anonymous trusts in Liechtenstein where secrecy laws allow the Alpine mini-state to function as a bolt hole for rich clients.
The Guardian has found that the banks, notably in Switzerland, are increasingly wary. "We do not accept business from politicians in controversial countries," said one banker.
"Some banks take the view that we will not have anything to do with members of the Saudi royal family," said a source close to the Wolfsberg group, an alliance of 11 major banks - including HSBC, Barclays, Credit Suisse, Goldman Sachs, and the Dutch company ABN Amro - which convened to combat money laundering.
The anxiety of the banks follows the embarrassing experience of having to trace and hand back vast fortunes looted by such notorious former dictators as Ferdinand Marcos in the Philippines, Joseph Mobutu in Zaire, and General Sani Abacha in Nigeria.
All three salted away private funds overseas which were later recovered by successor governments. Marcos reportedly plundered between £3bn and £12.5bn before he was ousted; Mobutu exploited his impoverished state's natural resources to extract some £2.5bn before his death; while Gen Abacha and his associates took up to £2bn from the national finances, says the Nigerian government.
Last year the Basel committee on banking supervision, which is an influential international body, defined "politically exposed persons" (Peps) as those "entrusted with prominent public functions, including heads of state or of government".
"Accepting and managing funds from corrupt Peps will severely damage the bank's own reputation... even if the illegal origin of the assets is difficult to prove," the committee warned. It added: "The bank may be subject to costly information requests and seizure orders from law enforcement."
If the big banks decide to shun royal Saudi money it would be a huge blow to the House of Saud's prestige, reinforcing fears that the regime is less stable after September 11 and vulnerable to the rise of Islamic fundamentalism. Although the sums invested abroad by King Fahd may not be the product of corruption under current Saudi law, they may nevertheless be caught by the banks' new policy.
Professor Mark Pieth of Basel university, a consultant to the Wolfsberg meeting in Zurich which drew up anti-money laundering guidelines, confirms that a sub-group has been established to consider such "politically exposed" clients.
"They're looking at this issue very closely already with the Saudis," he said.
"It would be down to individual banks to decide whether to refuse new Saudi accounts."
Stanley Morris, an expert on money laundering at Interpol who also attended the Wolfsberg meeting, said that guidelines would identify those individuals so politically exposed that they constituted an excessive banking risk.
The 6,000 Saudi royals form a privileged caste whose collective overseas funds are thought to amount to £400bn. The ailing King Fahd is believed to have personally acquired at least £20bn.
Critics accuse them of greed and corruption on a grand scale but the royal family maintains that its wealth was legally acquired under the laws of the land.
Dr Saad Al-Fagih, the London-based head of the non-violent dissident group, the Movement for Islamic Reform in Arabia, said: "The way the country is run gives the royal family full chance to confiscate as much money as [it wants]."
One of the secretive Liechtenstein trusts, the Asturion Foundation, has been used by King Fahd for over 25 years to shelter his money abroad. It constitutes a legal entity that holds bank accounts of which he is the beneficiary; it also owns his worldwide property portfolio.
It is not known exactly how much money the foundation holds but among the assets registered in Britain under the foundation's name is Kenstead Hall, a mock Tudor mansion in north London's "Billionaire's Row" - The Bishop's Avenue in Hampstead.
Two years ago, the international Financial Action Task Force blacklisted Liechtenstein for failing to combat money laundering in general. It was taken off the list in June last year after improving its regulatory regime.
Earlier this year, however, the principality, along with six other countries, was placed on another blacklist of uncooperative tax havens by the Organisation for Economic Cooperation and Development.
It now faces penalties from world financial institutions if it fails to introduce further transparency and accountability into its offshore regime.
King Fahd's use of such foundations to hide his wealth abroad is embarrassing for his regent, Crown Prince Abdullah, who has tried to end his relatives' financial excesses.
In November, the Saudi government spent £5m on advertisements portraying King Fahd as a benevolent father figure to the nation. "For two decades he has been the quiet symbol of stability and diplomacy," the adverts stated.
The identity of Asturion's beneficiary was revealed in a CD-rom of internal files obtained by a defecting Liechtenstein law firm employee which was originally passed to the German magazine Der Spiegel.
Two trusts - Asturion and Norista - control most of King Fahd's opulent foreign residences. Two of his sons - Mohammed, governor of the Eastern province, and Saud, the deputy chief of intelligence - are trustees. The Asturion portfolio includes some of the most desirable addresses in Europe.
"Asturion and Norista are owners of various properties in Europe and... the beneficiaries are the [Saudi] royal family," agrees Herbert Batliner, who for decades headed the Liechtenstein law firm which administers the two foundations.
The Saudi embassy in London declined to comment on either the Liechtenstein foundations held by the royal family or the debate over whether Saudi royal money might be refused by western banks.
David Pallister, Owen Bowcott and Alex Bellos
Wednesday July 17, 2002
The Guardian
King Fahd's trusts have been run by one of Liechtenstein's most extraordinary figures, the lawyer Herbert Batliner, whose clients have included alleged insider dealers, the son of an African dictator and the pardoned fugitive US financier Marc Rich.
Worth some £250m, the 73-year-old Mr Batliner's opulent home on the Alpine slopes boasts an underground car park and a bronze abstract sculpture on the lawn, while his office hosts a canvas by the surrealist Paul Delvaux.
"We... don't take unannounced clients, or those that show up with suitcases full of cash," Dr Batliner once told a journalist.
In 1999, he was named in German investigations into the funding of Chancellor Kohl's Christian Democrat Party through another trust, called Norfolk. Dr Batliner's office says he did not know his client was a CDU official.
In 1990, an Ecuadorian drug baron's partner approached him to set up a trust. Later, the US tried to confiscate the cash.
Liechtenstein's chief prosecutor, Robert Wallner, said: "Dr Batliner's position was that he had [been] given reassurances that the money was of a legal source." Money laundering was not an offence at that time in Liechtenstein.
Dr Batliner's office said the firm was "fully cleared".
Last year, Brazil began investigating Sanud, a trust allegedly used to transfer cash to the Brazilian football federation chief, Ricardo Teixeira. Further inquiries are likely.
Dr Batliner has been quoted as saying: "I'm not a Father Confessor who has to ask his clients if they have obeyed the laws of their homelands." And he points out that 80% of clients were referred to him by banks.
Your rants and ravings are permitted as long as they remain occasional. However, do not attempt to educate the younger citizens or your Medicare will begin having difficulties and your TV will start getting fuzzy.
Maybe dad's (or his) money is tied up with the Saudis.
Not to fear, though, because THE WHOLE POINT of the next election is to be sure that W gets another term, and that he enjoys it.
The USA, the Constitution, the people, the victims of September 11, etc., none of that stuff matters.
A few good articles on the Bushes, Carlyle, and their clients. Some are from lefty groups but even in those there are some disturbing findings:
Neil Bush says Arab P.R. machine not as good as Israel's
Jan. 24, 2002 | Presidential brother Neil Bush, while giving a speech Monday in Saudi Arabia, condemned the American media for stereotyping the Arab world and urged Arab leaders to hire lobbyists and public relations representatives to combat these negative images as well as to sway public opinion to a more sympathetic view of Arabs in the Arab-Israeli conflict, according to reports in foreign media outlets. Bush implied that Israel has done a better job of getting its message across in the American media.
Carlyle - Founding Partners and Senior Advisors and Managing Directors
Carlyle - The ex-presidents' club
Carlyle's tentacles stretch far
President’s oil companies funded by Bin Laden family and wealthy Saudis who financed Osama bin Laden
Also details how Grandad Bush (Prescott) got in hot water in WWII:. Much of the Bush family wealth came from supplying needed raw materials and credit to Adolf Hitler’s Third Reich. Several business operations managed by Prescott Bush – the president’s grandfather - were seized by the US government during World War II under the Trading with the Enemy Act.
On October 20, 1942, the federal government seized the Union Banking Corporation in New York City as a front operation for the Nazis. Prescott Bush was a director. Bush, E. Roland Harriman, two Bush associates, and three Nazi executives owned the bank’s shares. Eight days later, the Roosevelt administration seized two other corporations managed by Prescott Bush.
US - China Chamber of Commerce (Chairman Prescott Bush Jr.)
China has a special place in my heart. I have been personally involved in China for over 15 years. My brother, George has been instrumental in the development of U.S. and China relations since 1974. I, like many others, strongly believe that China will be the world's largest economy in the next 50 years, and along with America, will play a significant role in shaping the world's peace and economy.
Also check out articles on Carlyle's sister company Dyncorp: DynCorp In Colombia: Outsourcing the Drug War
Also look at writings by Catherine Austin Fitts - served under Bush Sr. as Assistant secretary of Housing/Federal Housing Commmisioner during the first Bush Administration, and is also formerly the head of Hamilton Securities Group Inc. She currently serves as President of Solari Inc., an investment advisory firm. She covers some Dyncorp activities and HUD programs.
Catherine Austin Fitts-Solari, and How the Money Works
Once again, I like and support President Bush. I think he is more genuine than his dad. I simply plead with him to break from his family's globalist deals that often unite the Bushes and very corrupt officials. Come clean Mr. President and we all will give you the adoration that we want to express. Please do not be another Bill Clintoon by dealing with the enemy, covering your tracks, and promoting secret agendas.
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