Courts / Dublin / Report

Irish held HSBC bonds linked to late Nigerian dictator Abacha are deemed to be proceeds of crime

Date
2015-03-16

Stage
Charge Or Pretrial

Primary locality
Dublin

County
Dublin

Summary

The High Court ruled that Irish‑held investment bonds worth US$6.5 million (€6.13 million) linked to the family of the late Nigerian dictator General Sani Abacha are proceeds of crime. Mr Justice Raymond Fullam made the finding in respect of bonds held at HSBC Life Europe for the benefit of Abacha's eldest surviving son, Mohammed Sani Abacha. The Criminal Assets Bureau (CAB) argued the bonds were bought with money illegally taken from Nigeria, laundered through Swiss, London and New York institutions, and that they breach Irish tax‑evasion laws. CAB said the funds were obtained in two ways: directly from the Nigerian Central Bank and through foreign corporations that were forced to pay a percentage of contract values to the regime. The judge accepted CAB's evidence, ordered the bonds under the 1996 Proceeds of Crime Act, and appointed a receiver. He noted that Mohammed Sani Abacha had been served with notice of the proceedings.

Who, what, where, when and why

What: Report matter: Irish held HSBC bonds linked to late Nigerian dictator Abacha are deemed to be proceeds of crime. Procedural stage: charge_or_pretrial

When:

January 1994 Other
June 1998 Other
2015-03-16 Publication

Why: Counsel said the foreign companies were informed by the General's associates that the contracts allowing them operate in Nigeria would be considered invalid unless the regime was "paid a percentage of the contract's value" in order to re-validate them. CNI source report