§ Harry CohenTo ask the Chancellor of the Exchequer what reports he has received indicating the involvement of UK banks in the money laundering activities of the late General Abacha; whether he is(a) budgeting for the return of such money to Nigeria and (b) arranging for its repayment; and if he will make a statement [39003]
§ Ruth KellyThe Financial Services Authority published a report in March 2001 following a three month investigation into the handling by banks in the UK of accounts linked to the late General Abacha. The investigation established that 23 banks had accounts linked either to General Abacha, family members or close associates and that in 15 of the banks significant control weaknesses were identified. Eight of the banks had corrected these weaknesses after the accounts were opened but seven banks were ordered to take action to rectify control weaknesses.
The return to Nigeria of any money held in accounts owned by the Abacha family or close associates is dependent on the Nigerian authorities prosecuting individuals for their offences and subsequently, if these individuals are found to be guilty, obtaining a confiscation order against them. If in its assessment of the benefits obtained by these individuals from the crimes they are convicted of, it is considered that assets are held in the UK, an application for enforcement of that order in the UK courts would then be required. I understand that no such confiscation orders have, as yet, been made in Nigeria. Although the proceeds of overseas confiscation orders revert to the Exchequer the government has powers to return such proceeds to overseas jurisdictions. The UK government would consider returning any money confiscated form the Abacha accounts to the Nigerian authorities.