British financiers may face trial after Bahrain bank failures

Gulf kingdom to press ahead with money laundering, fraud charges linked to collapse of TIBC, Awal Bank
British financiers may face trial after Bahrain bank failures
Four British bankers were held in Bahrain for 18 months following the collapse of the banks in the summer of 2009
By Joanne Bladd
Tue 08 Mar 2011 01:19 PM

A group of British bankers may face a criminal trial in Bahrain after the Gulf kingdom’s public prosecutor said he had instructed a court to proceed with a case against them.

Nawaf Abdulla Hamza said a hearing would proceed against executives allegedly linked to the collapse of two Bahraini banks, The International Banking Corporation (TIBC) and Awal Bank, newswire AP reported.

The defendants were not named; however, Bahrain last year detained four British foreign workers in connection with the failed banks.

Tony James, Alistair MacLeod and Cliff Giddings, all formerly senior executives at Awal Bank, and Kevin Moriarty, who was at TIBC, were held in Bahrain for 18 months after the banks were put into administration in the summer of 2009.

No formal accusations were ever levelled against the four, who were allowed back to the UK in December following diplomatic pressure from the British Foreign & Commonwealth Office.

According to British paper The Telegraph, Moriarty died earlier this month.

A statement carried by the official Bahrain News Agency, cited by AP, said that as a result of "the complaints submitted by the Central Bank of Bahrain relating to the ... transgressions by officials at Awal Bank and The International Banking Corp., and the money laundering and fraud crimes attributed to some of them,” a hearing would be scheduled.

It said that the decision came after the "substantiation" of the violations detailed in the Central Banks' reports and that run afoul of Central Banks regulations.

The statement carried the headline: "Public Prosecutor: Awal Bank and (TIBC) officials referred to court on money laundering charges," AP said.

For all the latest business news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.

Subscribe to our Newsletter

Subscribe to Arabian Business' newsletter to receive the latest breaking news and business stories in Dubai,the UAE and the GCC straight to your inbox.